The Bank of Wales launches
THE UK’s first development bank has launched in North Wales with ambitions to help drive the region’s economy.
The Development Bank of Wales has officially started business and has a £1bn ‘ game-changing’ economic impact target over the next five years.
Based in Wrexham, the headquarters will house up to 50 staff, with more finance executives in offices around Wales.
Economy Secretary Ken Skates said the North Wales base was a positive message for businesses in the region.
He added: “There are accusations that too much focus is given to South Wales, I think it is important that we share opportunities to create wealth evenly and fairly across Wales.
“We will have the headquarters in North Wales and a pan-Wales strategy so that its fulfils my vision for the Development Bank to be for all businesses across all communities.
“I am confident that we have people in North Wales who can rise to the challenge and meet the demands of the business community.
“This bank has the potential to massively increase the available financial resource to growing businesses to £1bn over the next five years, creating or sustaining 5,500 jobs per year by 2021, that could be game-changing.
“There is considerably more support than is available from Finance Wales.”
The bank launches with the new £100m Wales Flexible Investment Fund, more micro finance available and extended lending terms.
In total, the Development Bank of Wales has around £440m available to invest in Welsh business.
The Development Bank is targeted to have an impact of more than £1bn on the Welsh Economy.
As a result, it is expected to support 1,400 businesses with those businesses creating and safeguarding more than 20,000 jobs.
The Wales Flexible Investment Fund offers up to £5m in a single round and repayment terms of up to 10 years.
The Development Bank is also trebling the amount of micro finance available taking the total available to £18m.
Professor Dylan Jones-Evans, who led the Access to Finance review for the Welsh Government that recommended the establishment of a Development Bank of Wales, was pleased that it was finally being launched.
He said: “Naturally I am delighted that the Development Bank of Wales is finally being opened and there is enormous expectation that Welsh businesses will finally have access to affordable finance that will help them to grow and develop.
“However, it is critical that thet new bank focuses its strategy to ensure that the needs of WWelsh businesses are at the heart of everything it does going forward, especially as AAssembly Members were critical of its predecessor, Finance Wales, as not fully meeting the needs of small businesses across Wales. If it does that, then it may help to make a real difference to the Welsh economy.”
Beverley Downes, head of marketing and communications for the Development Bank, said: “The Development Bank of Wales is fantastic news for Welsh businesses.
“We have about £440m to invest in Welsh businesses over the next five years and are launching with a new £100m Wales flexible investment plans.
“The idea is we work alongside conventional funding, with the high street banks.
“North Wales is an area that performs really well economically so there is definitely more business we can do here.”
Business partners Rachel Lloyd and Kim Jones have already seen the difference the extra support can make.
The ladies have been friends for 16 years but wanted to leave their careers as a teacher and in the NHS.
They then seized on the idea of buying a children’s nursery and approached the owner of Homestead Nursery in Gresford after hearing she was considering selling.
Rachel said: “We have always been in touch and moaning about what we do and thought, ‘maybe we could do this’.”
The owner agreed to sell and they secured substantial funding from Barclays but were short of the money they needed.
Rachel added: “Barclays were really good but Business Wales put us in touch with the Development Bank and they came up with the additional money. The extra support meant, rather than just taking leasehold on the site, we were able to buy the freehold. The support from advisors was there and we changed our plan based on this. That support is still there now.”
The took over in May and now have 67 children at the nursery.
Kim added said: “It is nice to think that North Wales is up and coming. There are so many areas that need to be developed so to have this in North Wales will be fantastic.”