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Barclays Corporate leads syndicate in £340m refinance deal for Bibby Group of Factors Ltd

Barclays Corporate has led a syndicate of banks in refinancing £340m for Bibby Group of Factors, the UK’s largest independent factoring and invoice discounting provider.

The deal sees Bibby refinance an existing facility, which was due to expire in 2012, early and secure its funding until 2014.

Barclays Corporate led a syndicate of four banks which included RBS, Credit Agricole and Lloyds in the refinancing of one of the largest receivable lines in the UK. Barclays Corporate provided £175m, Lloyds £75m, RBS £50m and Credit Agricole £40m.

Stephen Coltman, Relationship Director, Barclays Corporate, said: “Many UK and European companies will need to refinance in 2012 as a result of three, five and seven-year agreements signed in 2009, 2007 and 2005 reaching maturity. This will create a spike in demand and according to our estimates the value of debt will double the amount refinanced in 2010.

“Bibby has taken the sensible step and decided to refinance ahead of time to avoid the refinancing spike and allow the business to grow without having to worry about the security of their funding”.

Mark Hartigan, Group Risk and Finance Director at Bibby Financial Services, said: “As the economy begins its recovery, it’s vital that businesses can gain quick access to funding to enable them to capitalise on any potential growth opportunities. Since the amount that can be borrowed grows directly in line with sales, invoice finance is an ideal solution in the current climate.

“The backing from Barclays Corporate and the other banks in the syndicate will ensure we have the flexibility to be able to meet growing demand and take on more new business.”