THE Scottish National Investment Bank has said it has made “clear progress” in its inaugural year and is “well positioned” to deliver environmental, social and financial returns for the people of Scotland.
The Bank published its first full-year accounts yesterday.
Launched in November 2020, it was established to be a development investment bank, delivering patient, mission impact investment to the Scottish economy and is wholly owned by Scottish Ministers on behalf of the people of Scotland.
In the year to March 31, millions of pounds of support were invested diversely in different sectors and geographies across the country.
Companies such as Highland Coast Hotels, Lothian Broadband group and Aberdeen Harbour have all been backed by the Bank and delivered against one or more of its missions.
The focus for 2022 has been to build on the foundations laid since launch and has seen the Bank invest more than £140 million in 12 businesses and projects over Scotland, leverage £327m from private and public sector investors and increased net assets from £31.4m to £165.4m. It has also more than doubled its workforce.
Interim chief executive Sarah Roughead said: “The Bank has demonstrated its ability to be a catalyst for private investment into businesses and projects aligned to its missions.
“In doing so, the Bank has established itself as a credible financial institution within Scotland’s finance community.”
The Bank’s investments have ranged from £1m to £50m across debt, equity, and fund investments.
Looking forward, Roughead added: “As our portfolio and networks grow, the Bank aims to offer deeper insights, working as a conduit between both policymakers and business leaders.
“This, together with continuing to increase awareness of the Bank in the wider ecosystem, will be an area of focus for next year.”
An unrealised loss of £3.4m has also been recognised in the report and was largely due to the early valuation profile of fund investments.
Unrealised losses are entirely expected followed by capital appreciation in later years.
As a development bank, it is required to take an increased risk with investments to prove the commercial viability of new markets and technologies, or to bridge an investment gap where the risk is perceived to be too high for private sector investors.
The Bank’s chairman Willie Watt said: “This has been a year in which investment activity has ramped up and tangible impacts are manifesting themselves with our portfolio.
“The Bank is acting as a catalyst to encourage investment in businesses or projects in the private and third sector in which it may otherwise be challenging to obtain funding.
“I am excited about the future.
“We have a strong team in place and are well placed to continue to deliver impact investment which has a material impact on the Scottish economy.”
The Bank invests in businesses and projects connected to Scotland to deliver long-term, patient debt or equity investment where the private market is failing to provide the support businesses and projects require to grow.
Its missions are to support Scotland’s transition to net zero, build communities and promote equality and harness innovation.
