Friday, 19 April 2024
Atom Bank secures $37.38 million (£30 million) Tier 2 capital facility from British Business Bank Investments
Atom bank and British Business Bank Investments Ltd, the commercial arm of the British Business Bank, announced the agreement of a £30m Tier 2 capital facility to support Atom’s growth.
The Tier 2 eligible facility is a valuable addition to Atom’s existing regulatory capital base and will enable the bank to draw on additional capital in a flexible manner as it grows.
The £30m capital facility is being made under BBBIL’s Investment Programme, which has so far committed over £580m to providers of finance to UK SMEs.
Anthony Thomson, Founder and Chairman of Atom comments:
“Access to Tier 2 capital at such an early stage of the growth cycle is rare and we are extremely pleased to be gaining this support from British Business Bank Investments.
“Together with the British Business Bank, we are sending a clear sign – we are here to support UK SMEs.
“This facility provides us with tremendous flexibility. Like all banks, we are actively managing our capital structure and having access to Tier 2 capital at this stage helps support our growth and is a great result for Atom, its shareholders and customers.”
The facility will help support the growth of Atom bank and its desire to lend to UK corporates and smaller businesses. It emphasises the commitment of British Business Bank Investments to addressing long-standing gaps in finance markets for smaller businesses by investing in small business finance providers and promoting greater diversity in the supply of lending. Atom’s choice to launch an SME proposition in its first product suite signals its intention to be a significant supporter of the UK SME market.
Catherine Lewis La Torre, CEO, British Business Bank Investments Ltd, adds: “Our investment in Atom bank demonstrates our commitment to increasing the diversity of small business finance by supporting recently licensed and ambitious challenger banks.
“We have seen challenger banks becoming an increasingly important source of UK SME funding and we believe a committed regulatory capital facility will not only support Atom’s growth trajectory but will also drive the bank’s ability to lend to UK SMEs.”
Re-disseminated by The Asian Banker
