The Development Bank of Wales invested £55m into 240 firms across Wales in the first half of its current financial in funding activity creating hundreds of new jobs. The bank, which is owned by the Welsh Government, said its investment deals, both debt and equity, totalled 280 (some firms secured more than one investment).
The value of equity deals, where it can invest up to £10m per deal, totalled £5.1m which included including £410,000 via the Wales Angel Co-investment Fund. Its equity secured co-investment from other equity funders into Welsh firms of £13m. Its £55m of debt and equity leveraged total co-investment of £31m.
In the sixth months to September this year, regionally the bank invested £16.9m into firms in Mid and West Wales, £16m into firms in North Wales and £22.2m in South Wales. It said its investments have safeguarded 1,197 jobs with 820 jobs created.
Property development loans accounted for the largest share with £23.8m invested across 45 projects – along with increased interest in the support provided to the sector via the green homes initiative and leaseholder support scheme. Some £1.5m was provided in 55 smaller loans to help entrepreneurs start new businesses.
The bank’s chief executive, Giles Thorley, said: “I’m pleased with the encouraging results we’ve seen in the first six months of the current financial year.
“It’s reassuring to see we’re performing in line with our objectives and expectations, with many metrics either matching or exceeding where we were at the same point in the last financial year.
“Increased parity in the breakdown of funding between regions is good cause for confidence as we continue to ensure access to the right investment is available across the whole of Wales.
“We also continue to attract significant levels of co-investment into Welsh businesses with the support of business angels and private sector partners.
“Equity remains an important instrument to support businesses across the business cycle and we’re seeing it increasingly used to help grow businesses, and to help management teams take over existing businesses.
“In line with our increased focus on encouraging more of Wales’ younger entrepreneurs to take their first steps into business, we’ve seen strong interest from and investments in business directors under the age of 30, at £10.5 million.
“I’m also pleased to see the level of investments made via the Wales Tourism Fund, showing how we’ve been able to work with and support a crucially important sector in the Welsh economy.”
On the challenging economic conditions faced by firms he said: “We’re aware that Wales and the UK more generally face difficult economic prospects, as businesses face inflation, stretched supply chains, labour shortages and increasing energy costs.
“While business demand for our services and the type of investment we can provide remains encouraging, we know that many more businesses may seek support as conventional lenders start pulling back due to wider economic uncertainty.
“The Development Bank of Wales is here as a source of stable, patient capital to businesses throughout Wales.”
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