British Business Investments has provided a £20 million capital in Tier 2 credit to UK-based Cynergy Bank to support its expansion goals.
A wholly-owned subsidiary of British Business Bank is British Business Investments. The money came from its Investments Programme, which aims to improve small companies’ access to credit by boosting challenger banks’ and non-bank lenders’ ability to lend.
After Cynergy Capital purchased the Bank of Cyprus’ UK branch, Cynergy Bank was founded in December 2018. The transaction, which was worth £103 million, was finalized in July 2018.
The FCA-regulated bank claims to have given more than £3 billion in loans to companies around the UK. It offers services to business owners, real estate investors, and family businesses.
With the additional capital, Cynergy Bank hopes to advance its efforts to become a top “human digital” bank in the UK. The bank has plans to support over £250 million in new-to-bank lending in the SME and real estate sectors.
In describing the investment as a “milestone” for the company, Cynergy Bank CEO Nick Fahy states: “This additional capital will support expansion in our company and help us deliver our long-term goals over the coming years, in addition to substantially improving our providing capacities for SMEs, property entrepreneurs, and family businesses.”