Half-year results published yesterday (Tuesday, November 26) by the Development Bank of Wales show 221 businesses and 3,245 jobs have been supported with investment totalling £61.8 million in the period from 1 April to 30 September 2024. Co-investment stands at £42.1 million for a total economic impact of £103.9 million in the first six months of the year.
With core objectives to facilitate an entrepreneurial culture, support financial inclusion and prioritising social impact, the Development Bank has £2 billion in funds under management and a portfolio of 3,378 customers. As a public finance institution owned by the Welsh Government, the Development Bank provides loans and equity for Welsh businesses, people and communities in support of the Government’s wider economic objectives including the transition to a low-carbon economy and developing new homes and commercial property.
One of the businesses to benefit from the support of the Development includes Lineat, a sustainable technology business specialising in the recycling of carbon fibre. The company has moved to Chepstow following a £1.4 million equity raise led by the Development Bank and Green Angel Ventures.
In north Wales, Gwynedd-based fruit and veg wholesaler Bwydydd Oren Foods is reducing carbon output and energy costs with the installation of a 60MWh solar panel array and electric vehicle charging points. This was funded by a £60,000 loan from the Green Business Loan Scheme.
Sally Bridgeland FIA took over as the new Chair of the Development Bank of Wales in September 2024. She said: “Having spent 25 years at the forefront of the UK investment market, I am passionate about the use of innovative financial instruments to deliver long-term economic growth with clear social value.
“Boosting growth and unlocking investment is a priority for governments in both Wales and Westminster. With the creation of the National Wealth Fund and the first phase of the UK Government’s Pension Investment Review now underway, we’ve got a real opportunity here in Wales to maximise the benefit of long-term capital for Wales as a tool for improving social, cultural, environmental and economic well-being. This is what will create long-lasting, positive change.
“These half-year results demonstrate the difference that the Development Bank makes to the Welsh economy, supporting jobs and supporting thriving communities throughout Wales.”
Giles Thorley is Chief Executive of the Development Bank. He said: “As an impact investor, we’re providing accessible funding to support the long-term sustainability of the businesses that we fund while advancing the ambitions for a green future in Wales.
“Indeed, as we reflect on the first half of this financial year, there is a marked increase in demand for funding and we are particularly pleased to see a rise in co-investment compared to this time last year. We’re continuously reviewing and developing our funds together with our working processes to ensure that we’re meeting the needs of Welsh businesses and improving our customer experience. We’re committed to making it as quick and easy as possible for businesses to access the funding that they need to start-up, adopt new technologies and create employment opportunities.
“We’re here to support the aspirations of Welsh Government and will continue to play our part in helping to deliver long-term economic prosperity for the benefit of all.”
