Bibby secures £340m

ASSET-based lender Bibby Financial Services has secured a funding package worth £340m.

A syndicate of four banks – Barclays, Lloyds TSB, Royal Bank of Scotland and Eurofactor, the asset-based lending division of the French bank Credit Agricole – have arranged the new four-year facility.

The Liverpool-based business provides invoice finance to more than 3,000 firms in the UK. It said the deal would allow it to meet growing demand. Turnover at the division rose 20% to £85m last year.

In a statement Edward Rimmer, chief executive, said: “We are delighted to have secured this significantly enlarged facility which demonstrates our funders confidence in our business model. 

“This facility will enable us to continue to meet the high demand that we are currently experiencing for our services but will also help us to achieve the ambitious growth objectives that we have set ourselves for future years. 

“Considering the current challenging financial environment, we were impressed by the appetite that Barclays and our other funders demonstrated in getting this facility arranged.

Steve Coltman, director of asset and sales finance at Barclays, which led the deal, said: “This transaction came at a time when there was significant uncertainty in the debt markets. The arrangement of this new facility is testament to the continuing availability of debt funding to good quality corporates and the ability of the local market to deliver such financial arrangements.”

Chris Sharkey, relationship director at RBS, said: “Bibby Financial Service’s growth during recent years reflects the quality of their products and service. The funding structure that has been put in place provides them with the platform to continue with their ambitious expansion plans.” 

Bibby Financial Services is part of the 200-year-old family-owned shipping group Bibby Line. It has factoring operations in 10 countries overseas.