The British Business Bank's September 24 announcement describes an ENABLE guarantee covering an Oxbury lending portfolio of up to £500 million, approximately $663 million. Davidson Kempner supplies junior investment; the public guarantee covers the senior position; Oxbury retains part of the credit risk on every underlying agreement. The portfolio ceiling is not the size of Davidson Kempner's check.
This is only the second ENABLE bank transaction to include a junior investor. For a specialist agricultural lender, the structure can release capital supporting further loans while bringing an institutional credit investor into a portfolio it would otherwise have to originate or purchase. The government-backed senior exposure and privately funded junior exposure have different economics. Attachment points, the junior investment's size and pricing were not disclosed, so the announcement cannot establish the investor's prospective return.
Oxbury also receives a pricing discount for loans meeting specified sustainability metrics. That creates a financing incentive at the portfolio level; it does not establish that every borrower receives cheaper credit. British Business Bank's transaction announcement