Atom Bank and British Business Bank Investments Ltd (BBBIL) have today (21st June) announced the agreement of a £30m Tier 2 capital facility to support the challenger bank's growth.
The Tier 2 eligible facility is a valuable addition to Atom's regulatory capital base and will allow the bank to draw on additional capital in a flexible way as it grows.
The £30m capital facility is being funded by BBBIL's investment programme, which has already supplied over £580m to providers of finance to UK SMEs.
Anthony Thomson, founder and chairman of Atom, said: “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 move will help aid the progress of Atom Bank and help it to lend to UK corporates and smaller businesses.
The BBBIL – the commercial arm of the British Business Bank – is targeting the gaps in the finance markets for smaller businesses by investing in small business finance providers.
Catherine Lewis La Torre, CEO of British Business Bank Investments Ltd, said: “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.”
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