Distrib. Fin. Regulatory News (DFCH)

18 August 2023

Distribution Finance Capital Holdings plc

("DF Capital" or the "Company" together with its subsidiaries the "Group")

Increase in ENABLE Guarantee commitment

Distribution Finance Capital Holdings plc, the specialist bank providing working capital solutions to dealers and manufacturers across the UK, is pleased to announce that it has agreed with the British Business Bank to increase the ENABLE Guarantee from the initial £175m agreed in January 2023 to £250m effective from 31 August 2023. As previously announced, this may be increased further up to £350m in the future. 

This ENABLE Guarantee commitment provides the Group with incremental capacity to scale its loan book without the need for additional Tier 1 equity capital by up to £105m on the basis of this £250m facility and up to £150m if the facility is increased to £350m.

Additionally, the Group is well progressed with its plans to raise non-dilutive Tier 2 capital to further support its product diversification and medium-term growth strategy which, together with the ENABLE Guarantee, would allow the loan book to reach in excess of £800m without requiring additional Tier 1 capital.

Carl D'Ammassa, Chief Executive, commented: "This additional support from the ENABLE Guarantee further strengthens our relationship with the British Business Bank, being a key foundation of our capital strategy, and supports our growth ambitions into 2024."

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