Naked Wines and Trustpilot are among the biggest UK-listed firms with a material exposure to Silicon Valley Bank (SVB), it was revealed today, as businesses rushed to reassure shareholders they had enough cash to survive after the bank’s collapse on Friday.
Naked Wines said it had a “$60m asset backed credit facility, which is syndicated 50-50 between SVB and Bridge Bank” and which “remains an important part of our financing arrangements.”
It added that “£14m is held in a cash sweep account under which SVB acts as custodian. The contract terms of this account state that these funds are held by SVB as agent.”
Online review service Trustpilot said the SVB was its “principal banking partner,” adding that it had $36 million held in SVB UK; of which $18 million currently in transfer out of the bank but pending confirmation.
Medical imaging technology business Polarean was also severely exposed. The Company said it had a total cash balance of $13.9 million on 28 February 2023, of which $12.4 million was held through Silicon Valley Bank. Tech cloud company PCI-Pal said it had a total of £3.2 million of cash in accounts with SVB split between the US and the UK.
The Bank of England today said it had sold the UK subsidiary of Silicon Valley Bank to HSBC for £1.
In a statement the bank said: “This action has been taken to stabilise SVBUK, ensuring the continuity of banking services, minimising disruption to the UK technology sector and supporting confidence in the financial system.”
All depositors’ money with SVBUK is safe and secure as a result of this transaction. SVBUK’s business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes.
“SVBUK staff remain employed by SVBUK, and SVBUK continues to be a PRA/FCA authorised bank.”
Responding to the HSBC deal, Dom Hallas, executive director of tech policy nonprofit Coadec, said: “The government deserves huge credit. From the very top, to HM Treasury who understood the challenge and gripped it, to the huge number of civil servants who have likely not slept since Friday.
“They have saved hundreds of the UK’s most innovative companies today.”
