OakNorth Bank approves over £1bn in new loans and receives an additional allocation from the British Business Bank
OakNorth Bank has approved £1.1bn in new loans since 23 March to support UK businesses through COVID-19, including over £400m through the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).
From June to August, OakNorth Bank experienced twice the lending volume going to credit committee compared to the same period last year, and in the last month, has seen four times the volume.
Despite the difficulties the UK economy and British businesses have faced due to the pandemic, OakNorth Bank has continued to support viable businesses and strong management teams, including: a loan-on-loan facility to Ultimate Finance to support growth in bridging lending; a loan to The Jade Hotel in South Kensington to support expansion and renovations; a loan to Red Oak Taverns to assist with working capital requirements and contractual obligations; a loan to Dewing Properties to release liquidity to the wider business; and the completion of its first fund finance subscription facility to Bluegem Capital Partners, a PE firm focused on European consumer-facing businesses.
Ben Barbanel, Head of Debt Finance at OakNorth Bank, said: “At the start of the pandemic, we made a commitment to continue supporting experienced management teams and viable British businesses. As part of that commitment, we’ve approved over £1bn in new loans, held more than 325 credit committees and are currently seeing four times the lending volume going to credit committee vs the same period last year. We have also been active participants in the British Business Bank’s CBILS and CLBILS, so are glad that the schemes have been extended and that we’ve been granted an additional allocation.”