Commons Sense

House of Commons · Written Ministerial Statement

ENABLE Funding Scheme

14 January 2020 · Department for Business, Energy and Industrial Strategy

Proposed by Kelly Tolhurst Con Rochester and Strood

Business & Trade

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The ENABLE Funding Scheme will be refinanced through capital markets.
  • A capped second loss guarantee up to 30m will be issued.
  • The Departmental Minute explaining the procedure and liability is being laid today.

Issue summary

The ENABLE Funding Scheme is being refinanced through capital markets to repay senior funding provided by the British Business Bank.

Action requested

A capped second loss guarantee up to £30m will be issued for a transaction expected to complete before the end of the financial year 2019/20. The Departmental Minute explaining this procedure and liability is being laid today.

Key facts

  • ENABLE Funding Scheme provides senior funding since 2014.
  • A capital markets refinancing (securitisation) is expected to complete before end of financial year 2019/20.
  • A capped second loss guarantee up to £30m will be issued by the Department for the transaction.
  • The guarantee will likely last no more than seven years in practice much shorter.
  • A commercial fee will be received by the Department for issuing this guarantee.
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