BBB boosts Oxbury funding to £35m for UK agriculture

The British Business Bank has increased its financial backing of specialist lender Oxbury Bank, announcing an additional £10 million Tier 2 capital facility to support lending across the UK’s food and farming sector.

The latest investment builds on a £25 million agreement struck in 2022, bringing the total Tier 2 funding provided to Oxbury to £35 million. The move underscores the development bank’s ongoing commitment to strengthening small and medium-sized businesses (SMEs), particularly those operating within agriculture and rural industries.

Oxbury, which focuses exclusively on the food and farming sector, provides finance for land purchases, infrastructure upgrades, automation, storage and working capital. The bank has expanded rapidly since receiving its initial funding, supported by a growing and diversified savings base.

According to Oxbury, it now accounts for around one in five new farm loans in the UK over a rolling 12-month period and is nearing a 10% share of new agricultural lending nationwide, an indication of its increasing influence in a traditionally underserved market.

The British Business Bank said its Tier 2 capital investments are designed to act as a catalyst for growth among recipient institutions, helping them scale their lending and improve access to finance for SMEs across the country.

Richard Bowen, Managing Director of Direct Financial Institution Solutions at the British Business Bank, said the expanded facility would deepen an already strong partnership.

“We are delighted to increase our Tier 2 funding with Oxbury Bank and strengthen our relationship with them as a delivery partner,” he said. “We hope this transaction enables Oxbury to support as many food and farming businesses as possible.”

Nick Evans, co-founder and managing director of Oxbury Bank, welcomed the additional support, highlighting the lender’s growth since it began operations five years ago.

“This additional facility reflects the progress made over the past five years,” he said. “Oxbury was founded to provide specialist finance to the UK’s food and farming sector, and today we are executing one in five new farm loans in the country.”

Evans added that the bank’s model – combining farmer-backed capital with institutional and government-supported funding – provides a strong foundation for continued expansion while maintaining prudent lending standards.