Digital bank Atom Bank closes £30m Tier 2 capital facility
Flexible capital will enable Durham-based bank to fulfil its aim of lending to the UK's small businesses and corporates
Atom Bank, the digital bank, has agreed a £30m Tier 2 capital facility from the British Business Bank Investments Ltd (BBBIL) – the commercial arm of the British Business Bank.
Founded in 2014, Durham-based Atom is a new bank designed specifically for digital, authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA.
The company has a 300-strong team that includes CEO Mark Mullen – who has 25 years in the sector and was previously CEO of internet bank First Direct – alongside founder and chairman Anthony Thomson, who is also the founder and former chairman of Metro Bank.
The facility, which follows an £83m investment round in March of this year, will enable Atom to access additional capital in a flexible manner to fuel ongoing growth, and support its desire to lend to UK small businesses and corporates.
Thomson commented: “Together with the British Business Bank, we are sending a clear sign – we are here to support UK small businesses.
“This facility provides us with tremendous flexibility. Like all banks, we are actively managing our capital structure and having access to Tier 2 capital at this stage helps support our growth and is a great result for Atom, its shareholders and customers.”
Catherine Lewis La Torre, CEO, British Business Bank Investments Ltd: “We have seen challenger banks becoming an increasingly important source of UK small business funding and we believe a committed regulatory capital facility will not only support Atom’s growth trajectory but will also drive the bank’s ability to lend to UK small businesses.”