The Development Bank of Wales made a record 457 investments totalling £103.3m in its last financial year.
In its financial year to the end of March, 2020, the development bank, which is wholly-owned by the Welsh Government, delivered a 29% (£23.2m) rise in investment, both debt and equity, on the previous 2018-19 financial year when it made 420 investments.
It said its investment leverage in a further £75.9m in private finance. Some £43.4m (42% of all investments) were to existing customers Investment in property development totals £34.1m up by 47% from £23.2m a year earlier.
Total equity investment of £16m was made, with 51 investments totalling £11.4m in early stage technology ventures.
The Development Bank recorded two exits in 2019/20 with Pinnacle Document Solutions and Yard Associates. These had a combined exit value of £2.8m split equally between debt and equity.
The development bank, which has its HQ in Wrexham, but the majority of staff at its Cardiff office, said its investment activity created or safeguarded 3,964 job.
It was established two years ago, emerging from what was Finance Wales.
There was a balanced spread across the country with £38.7m invested in south Wales, £34.3m in mid and west Wales and £30.4m in North Wales.
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Over half the number of investments was for small loans, micro loans up to £50,000, with an average deal size of £23,500. 265 businesses benefited from micro loans and 73 of these used the new fast track loan scheme to access £899,500.
Minister for Economy, Transport and North Wales Ken Skates, said: “Coronavirus has placed unprecedented pressure on the economy and as we plan our recovery I have been clear that I want us to build back better.
“These record results demonstrate the crucial role the Development Bank of Wales plays in doing exactly that. It provides the fast, flexible and responsive support Welsh business needs, which will be more important than ever as we plan for recovery.
“The Development Bank’s loan facility, created to help deal with the impact of the virus, has already allocated almost £100m to more than 1,200 businesses, with staff working tirelessly alongside us to provide an essential lifeline that has safeguarded thousands of jobs.
“That is in addition to the impressive figures the Bank has posted for the last financial year, which show nearly a 30% increase in investments. The figures are a true testament to the value the Bank is adding to our economy and the vibrant business landscape we are fostering here in Wales. Our focus on a diverse package of business support is key to enhancing our economic resilience and will be vital as we work to drive inclusive growth across Wales.”
Investment in early stage technology businesses totalled £11.44 million across 51 investments. This included 22 which were seed equity investments from the Wales Technology Seed Fund totalling £3.52 million a record performance from this fund. .
Giles Thorley, chief executive of the Development Bank of Wales said: “Although the year finished in a way that nobody could have predicted with Covid-19, 2019/20 really was an exceptional 12 months for Welsh business with record investment for all growth stages, start-ups, high growth and well-established companies of all sizes. I am delighted that we retained our status as one of the top five technology investors in the 海角视频 in calendar year 2019 (by volume) according to Beauhurst Report.
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“I am particularly encouraged to see customers returning for more support. The relationship that we have with our customers is based on long-term value and support. It’s not just about the money, we’re here to nurture growth which is why we work hard to support the development of strong, well run businesses that will create jobs and future economic prosperity.
“Having made over 256 referrals to Business Wales during the year, we continue to work closely with the Welsh Government and facilitate introductions to advisers, finance directors and non-executive directors to help our customers get the support and expertise that they need.
“Our recently expanded specialist property team continues to perform exceptionally well. It is one of our most active areas of the business with a total of £34m having been approved for property development projects during the year for a mix of commercial and residential and mixed use projects.
“Small and medium sized business are the lifeblood of our economy. We will continue to work closely with the Welsh Government to provide the funding that is needed to support growth, create jobs and drive ambition in all corners of our great nation.”
It was confirmed on Tuesday that its bid to be an accredited lender under the 海角视频 Government’s Coronavirus Business Interruption Loan Scheme (CBILS) had been rejected by the British Business Bank on the grounds that at least 30% of its funding had to be from non-government sources.
The development bank’s funds are backed by the Welsh Government and EU funding, alongside a £10m allocation from the Clwyd Pension Fund.