Propel, the UK’s fastest-growing asset finance lender, has been boosted with a new close to £500m financing round.
The Newport-based firm, once known as Howard Henry Finance and which provides finance to some 30,000 UK firms to acquire business-critical equipment, is expanding and diversifying its funding base following multiple initial funding rounds with the British Business Bank.
Investment bank Citi has structured a £275m private securitisation facility, while Quilam Capital has provided an additional £35m mezzanine and working capital facility, to enable the partial refinancing of Propel’s existing British Business Bank ENABLE funding facility and support further growth.
The financing round supports Propel’s emergence as a leading force in asset finance, following its strategic partnerships with Barclays Business Bank, accountancy firm Azets and global technology leader Samsung, to provide more than one million SMEs with access to fast and flexible finance to acquire equipment and vehicles.
The British Business Bank, the economic development bank of the UK Government, will continue to be a funding partner for Propel, with an ENABLE Funding facility that will allow it to provide £165m of finance to SMEs across the UK.
Propel’s growth rate has soared to 92% over the past year and reflects both the investment in its team and technology and its focus to work with its partners to provide SMEs with vital access to finance.
On its last funding Propel’s strategic advisers were Blake Morgan (Legal) and EY (Corporate Finance), which provided valuable industry knowledge to help structure and complete the transaction and execute on the inaugural securitisation.
Mark Catton, CEO of Propel, which employs nearly 200, said: “We are thrilled to have completed this latest funding transaction, which marks this latest stage of Propel’s growth in our mission to provide accessible finance to SMEs across the UK.
“We are an important funding partner of the British Business Bank and are excited by the growth opportunities the new funding lines with Citi and Quilam will provide. I should also acknowledge the brilliant work of the Propel team in getting this transaction successfully completed.”
Reinald de Monchy, managing director, guarantee and wholesale solutions, at the British Business Bank, said: “We are delighted to be supporting smaller businesses via our ENABLE Funding programme and for Propel Finance to enter in this next stage of its development.
“This first refinancing transaction, alongside the continued funding via ENABLE, will allow Propel to provide smaller businesses with greater access to a wider range of finance options and help create a more diverse finance market.”
Jordan Blakesley, director at Quilam Capital, said: “Quilam is delighted to have helped facilitate the transaction and provide additional growth capital to Propel Finance. This reinforces our commitment to supply larger businesses with the capital to unlock their growth potential.
“Propel is a rapidly growing asset finance lender and we are pleased to be involved in their journey.”
Propel’s lending book currently stands at £260m.
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