Finance Wales ‘helping create and secure jobs’
MORE than £136m was invested into Welsh businesses by Finance Wales alongside co-investment from the private sector last year.
And during its last 2016-17 financial year, the wholly-owned investment bank of the Welsh Government, said this created or safeguard more than 3,700 jobs in 245 companies.
Finance Wales has also repaid the loan from the European Investment Bank which formed part of the now fully invested Jeremie fund.
Jeremie’s replacement, the Wales Business Fund, supported by the European Regional Development Fund (ERDF), was launched last September.
Companies that benefitted from the fund included Tomlinson’s Dairies in Wrexham, Peerless Gas in Flintshire and Siltbusters in Monmouthshire.
It comes as the green light has been given for Finance Wales to evolve into the UK’s first development bank
The Development Bank of Wales, which will have its headquarters in Wrexham, will become operational this autumn.
Chairman of Finance Wales, Gareth Bullock said: “We fill a gap left by mainstream lenders, offering flexible finance solutions to companies who may struggle to get the package they need from the traditional sources of finance.
“Where there is decreased risk appetite in the wider investment market, we’re able to step in and take that risk burden to help support ambitious Welsh businesses. I’m proud of that, I’m proud of our flexibility and the approach our staff take to tailor deals for micro to medium companies.”
Economy Secretary Ken Skates said: “These are excellent results from Finance Wales which has played a key role in supporting the growth of Welsh businesses, helping to spread prosperity by creating and safeguarding jobs and leveraging in private sector investment.
“As Finance Wales prepares to evolve into the Development Bank for Wales, it will mark the start of a new era, presenting even greater opportunities to support more micro and medium sized enterprises throughout Wales.
The Development Bank of Wales will be tasked with providing more than £1bn - with leveraged private sector finance - of investment support to Welsh businesses over the next five years.
Mr Bullock said: “I am delighted to say we are close to selecting the new headquarters for the Bank in Wrexham that will have a strong presence throughout Wales providing easier access for businesses in all our regions.
Finance Wales chief executive, Giles Thorley, added: “Year after year Finance Wales has seen increasing demand for sustainable, effective finance for businesses in Wales. The Development Bank of Wales will build on this with greater scale and breadth unlocking more potential and enhancing a dynamic, competitive Welsh economy.”
The Wales Management Succession Fund, which Finance Wales manages on behalf of the Welsh Government, was launched in the 2016/17 financial year.
In early 2017 the fund made its first two investments – in Cardiffbased bio medical company Minerva and communications specialist Glamorgan Telecom.
It has also an active year for Finance Wales’ technology venture investments team. In December medical device company Creo listed on the Alternative Investment Market.
And in August 2016 the team also exceeded the £3m investment milestone for the £7.5m Wales Technology Seed Fund, investing more than £2.3m in the 2016/17 financial year alone and leveraging £1.24m from private sector funders.