The £20m subscription has been provided through the bank’s investment programme, which is designed to increase the supply and diversity of finance for smaller businesses by boosting the lending capacity of challenger banks and non-bank lenders.
This follows a previous £25m subscription to STB’s £50m Tier 2 note issuance in 2018, which has now been repaid.
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Judith Hartley, CEO at British Business Investments (pictured above), said: “This £20m investment in STB supports our mission to increase the diversity and supply of finance for UK SMEs.
“Independent operators like STB help diversify the UK’s smaller business finance market and provide more choice for firms.”
David McCreadie, CEO at STB, added: “We have shown sustained commitment to helping UK businesses through our real estate and commercial finance, as well as our motor vehicle dealer stock funding financial products.
“As of 30th June 2022, our lending to UK businesses was £1.5bn of a total customer lending book of £2.8bn.
“We have demonstrated our capability to capture significant growth opportunities across our diversified specialist lending businesses.
“We are pleased with the support we have received from British Business Investments and new investors in our new Tier 2 issuance — with this enlarged regulatory capital base, we are strongly positioned to continue to help consumers and businesses fulfil their ambitions.”
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