Development bank clocks up record number of investments
THE Development Bank of Wales made a record 457 investments totalling £103.3m in its last financial year.
In its financial year to the end of March, the Development Bank, which is wholly-owned by the Welsh Government, delivered a 29% (£23.2m) rise in investment, both debt and equity, on the previous 2018-19 financial year when it made 420 investments.
Some £43.4m (42% of all investments) were to existing customers. Investment in property development totalled £34.1m, up by 47% from £23.2m a year earlier.
Total equity investment of £16m was made, with 51 investments totalling £11.4m in early-stage technology ventures.
The Development Bank, which has its HQ in Wrexham but the majority of staff at its Cardiff office, said its investment activity created or safeguarded 3,964 jobs.
There was a balanced spread across the country, with £38.7m invested in south Wales, £34.3m in mid and west Wales and £30.4m in north Wales.
Over half the number of investments were for micro-loans up to £50,000, with an average deal size of £23,500 – 265 businesses benefited from micro-loans and 73 of these used the new fast-track loan scheme to access £899,500.
Minister for Economy, Transport and North Wales Ken Skates said: “Coronavirus has placed unprecedented pressure on the economy and as we plan our recovery I have been clear that I want us to build back better. These record results demonstrate the crucial role the Development Bank of Wales plays in doing exactly that. It provides the fast, flexible and responsive support Welsh business needs, which will be more important than ever as we plan for recovery.
“The Development Bank’s loan facility, created to help deal with the impact of the virus, has already allocated almost £100m to more than 1,200 businesses, with staff working tirelessly alongside us to provide an essential lifeline that has safeguarded thousands of jobs.
“That is in addition to the impressive figures the bank has posted for the last financial year, which show nearly a 30% increase in investments. The figures are a true testament to the value the bank is adding to our economy and the vibrant business landscape we are fostering here in Wales.
“Our focus on a diverse package of business support is key to enhancing our economic resilience and will be vital as we work to drive inclusive growth across Wales.”
Giles Thorley, chief executive of the Development Bank of Wales, said: “The relationship that we have with our customers is based on long-term value and support. It’s not just about the money – we’re here to nurture growth, which is why we work hard to support the development of strong, well-run businesses that will create jobs and future economic prosperity.”