Addleshaw Goddard has advised long-standing client NatWest on a £100 million senior debt facility provided to Rural Asset Finance, a specialist lender to SMEs and farmers operating across the UK’s agricultural sector.

The transaction involved the British Business Bank providing a guarantee to NatWest under its ENABLE Guarantee scheme enhancing the bank’s risk appetite, enabling preferential pricing for the borrower and facilitating increased lending to support sustainability-driven agriculture businesses.

Rural Asset Finance is a leading provider of asset-backed finance to UK farmers and rural SMEs, offering vital capital to invest in equipment, vehicles, renewable energy, and diversification projects. The facility will allow the firm to expand its footprint and provide greater access to finance for farms and agri-businesses navigating the twin challenges of economic pressure and the transition to low-carbon operations.

The AG team was led by Zoe Connor (Partner, Structured Finance & Securitisation), and  Fiona Luong (Managing Associate, Structured Finance & Securitisation).

Zoe Connor commented:

“This transaction is a great example of how public-private collaboration can help deliver targeted, sustainable investment. It was a pleasure to support NatWest on a transaction that aligns with both the bank’s ESG priorities and the needs of the UK’s rural economy.”

Addleshaw Goddard continues to advise leading banks, alternative lenders and fintechs on innovative debt transactions across the UK and internationally.

Matthew Whittle, Relationship Director, NatWest Bank said: “NatWest are pleased to support Rural Asset Finance in securing this new facility, backed by the British Business Bank’s ENABLE programme. The provision of the Guarantee alongside the Sustainability Linked features helps unlock capital, reduce pricing and ultimately increase access to competitive funding for agricultural and rural businesses across the UK. 

“We look forward to working with RAF and the team as they build on prior success and, in particular, drive forward their sustainable financing initiatives. The ENABLE programme provides an innovative platform and opportunity for NatWest to accelerate funding into specialist lenders, underscoring our commitment to both the sector and UK SME’s.”