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ENABLE Funding Scheme

14 January 2020

Proposing MP
Kelly Tolhurst Con
Rochester and Strood
Type
Written Ministerial Statement
Department
Department for Business, Energy and Industrial Strategy
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At a Glance

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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