Rural Asset Finance Secures £120m Funding from NatWest, BCI Capital
Deal News | Jul 24, 2025 | British Business Bank Investments Ltd
Rural Asset Finance, a specialist lender supporting the UK agricultural sector, has secured a funding facility of up to £120 million from NatWest Bank and BCI Capital. This financial arrangement is further bolstered by the British Business Bank, which is providing an ENABLE Guarantee. The initiative is poised to aid smaller rural agricultural enterprises with a blend of asset and term financing, emphasizing sustainability through a margin adjustment for meeting performance targets. NatWest's share of the funding is partially backed by the British Business Bank's ENABLE Guarantees programme, aimed at prompting lenders to increase their support for smaller businesses by mitigating some of the associated risks and reducing capital requirements. The ENABLE programme also allows the UK government to accept some risk liabilities in exchange for a fee. Established in 2019, Rural Asset Finance operates as a specialist lender catering to British farmers, offering flexible financing options to foster and secure the future of rural enterprises.
Sectors
- Agricultural Finance
- Banking & Financial Services
Geography
- United Kingdom – The article is centered on financial operations within the UK, specifically targeting its agricultural sector, with support from UK-based financial and governmental institutions.
Industry
- Agricultural Finance – This industry involves providing financial services to facilitate the operations and growth of the agricultural sector. Rural Asset Finance directly supports UK agricultural businesses, which aligns with this classification.
- Banking & Financial Services – This sector includes institutions like NatWest Bank and BCI Capital, which provide credit and funding facilities to various businesses, including Rural Asset Finance.
Financials
- £120 million – The total funding facility agreed for Rural Asset Finance provided by NatWest Bank and BCI Capital, with a portion supported by the British Business Bank.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Rural Asset Finance | Borrower | Company | A specialist direct lender providing financial solutions to British agricultural businesses. |
| British Business Bank | Guarantor | Company | A UK government-owned economic development bank, supporting lending to smaller businesses via the ENABLE Guarantees programme. |
| NatWest Bank | Lender | Company | A major UK bank providing part of the funding facility to Rural Asset Finance. |
| BCI Capital | Lender | Company | A financial services provider partnering in the funding facility for Rural Asset Finance. |
| Michael Strevens | Managing Director, Structured FI Solutions | Person | An executive at the British Business Bank, involved in the ENABLE Guarantee transaction. |