, Cabinet Secretary for
Economy, Energy and Planning: I am pleased to report that total
investment in Wales by the Development Bank of Wales has now
passed £1 billion, creating or safeguarding over 50,000 jobs
since it was formed in 2017.
The £1 billion milestone is a significant achievement which
demonstrates how, with consistent support and a commitment to
professionalism, strong and credible institutions capable of
genuine impact and reach can be built in Wales.
The Development Bank of Wales was established to operate as a
commercially driven social impact investor, assisting businesses
in accessing the capital they need to develop and grow. Alongside
loans and equity for Welsh businesses, the Bank's work also
supports Welsh Government objectives including the transition to
a low-carbon economy, the development of new homes and commercial
property, and the delivery of key infrastructure projects.
Almost 5,000 businesses have benefitted from the support of the
Development Bank since 2017. This includes more than 780
start-ups, helping Welsh entrepreneurs to start-up and scale-up
business ventures in every part of Wales.
Independent research shows the bank is a trusted partner to
thousands of businesses and individuals, and is a valued and
respected institution within the finance ecosystem with brand
awareness at over 70% among SMEs. High levels of customer
satisfaction are reflected in the Net Promoter Score of 90 - well
above benchmarks for the financial services sector.
Today, around 5% of the people working in the Welsh SME market
are in businesses where finance provided by the Development Bank
is at work. In fact, funding from the bank has helped to create
and safeguard more than 50,000 jobs since 2017. Nearly 90% of the
turnover supported by the Bank is being generated by businesses
outside of Cardiff, reflecting the wider SME population in Wales
and building from the Development Bank's pan-Wales presence.
Equity investments since 2017 have reached over £138 million
since the launch of the Development Bank – driving delivery of
our commitment to increase the use of equity stakes in business
support. This patient capital has provided a catalyst for
rapid scale up and high growth for innovative businesses
with data from the Development Bank showing that equity
investments have consistently created a higher rate of jobs in
median to high paid roles.
The Welsh Government has also worked through
the Development Bank to invest in commercial and
residential property. The Development Bank is able to offer
property development finance for residential, mixed-use, and
commercial property developments providing much needed
housing and infrastructure. Funding from £150,000 to
£10 million is available from a range of funds including the
Wales Commercial Property Fund, Wales Residential Property Fund
and Green Development Incentive. To date the bank has invested
nearly £300 million into the Welsh property market through
residential and commercial property funds - supporting the
building of over 2,300 homes and the development of over 230,000
sqft of industrial and office space.
The Development Bank benefits from strong and stable governance,
with the credibility of the bank being reflected in the strength
of the Board. The current Chair, Hon. Group Captain Sally
Bridgeland FIA brings extensive executive, advisory and
non-executive experience across pensions and investment, spanning
the private and public sectors across the UK. Under her
leadership the Bank benefits from a Board which brings together
expertise in venture capital, banking, entrepreneurship,
governance, economics and the regulatory environment which
provides strong and robust challenge to the organisation.
The Development Bank has benefited from the constructive process
of review and challenge brought
through Senedd scrutiny. This engagement will continue
to play a vital role in ensuring the Bank, as one of our lead
institutions, continues to learn and grow as it aspires to
operate to the highest standards rightly expected by people in
Wales.
Passing the £1 billion investment milestone is a marker on a
journey toward what I am confident will be further growth, reach
and impact through the Bank. Evidence shows that the foundations
laid by the Bank over the past eight years are strong. While the
context within which the Bank operates will continue to evolve, I
have confidence that the Bank's proven capacity for agility and
adaptability will enable it to navigate forward successfully.
Wales must be a place where ambition is matched by opportunity,
and the £1 billion investment milestone is a tangible
demonstration of how we are translating this ambition into action
and delivery.
