Rebecca Evans, 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.