By Anthony O. Goriainoff
Distribution Finance Capital Holdings PLC said on Thursday that its loan book had grown to 76% at the end of 2022, and that despite rising financing costs, it remains strong. the interest rate is not less than 6%.
The specialist lender – which provides investment to consumers and manufacturers in the UK – said its credit book as of December 31 stood at approximately 440 million pounds ($543.3 million) compared to GBP249 million at the end of 2021.
The company said it originated GBP1 billion of new loans by 2022, up from GBP690 million a year earlier.
The DFC added that the Bank of England has agreed to a GBP175 million Enable program guarantee which may increase in the future to GBP350 million. The company says it will be able to scale its loan book without the need for an additional Tier 1 capital of up to GBP75 million, or up to GBP175 million if the facility is increased to GBP350 million.
“The group continues to explore options to raise non-dilutive Tier 2 capital to further support its product diversification and expansion over time,” the company said.
Shares by 0916 GMT were up 1.50 pence, or 4.6%, at 34.50 pence.
Write to Anthony O. Goriainoff at firstname.lastname@example.org