The Development Bank of Wales has announced a monumental achievement, having deployed £1 billion in investment since its establishment eight years ago. This significant milestone has directly supported the creation and safeguarding of more than 51,000 jobs across the nation, marking a transformative period for the Welsh economy.
A Detailed Look at the £1bn Investment
Launched in November 2017 as a successor to Finance Wales, the state-owned development bank has become a cornerstone of business support. Its funding, a mix of loans, equity investments, and property finance, has reached 4,699 distinct Welsh businesses through 5,184 individual investments.
The bank's activities have generated an impressive £5.8 billion in gross value added (GVA) and successfully attracted an additional £363 million in private sector co-funding. The breakdown of the £1bn reveals that debt funding, with an average deal size of £19,000, constituted the largest portion at £564 million. Property-related lending, for both residential and commercial projects, accounted for £298 million.
Equity Investment and Regional Impact
Equity investments have totalled £138 million, leveraging a substantial 2.31 times co-investment of £317.7 million. The bank has recorded 30 equity exits from its portfolio. While the overall return on these exits was a below-par 1.12 times, exits from businesses funded solely by the development bank performed better, yielding a 1.57 times return on a £13.77 million investment.
The bank's impact is felt in every corner of Wales. In North Wales, 1,078 businesses received £240.4m, sparking £135.3m in co-investment. Mid and West Wales saw 1,399 businesses backed with £323.4m, leveraging another £143.2m. South East Wales benefitted the most, with 2,222 businesses receiving £436.5m in direct investment and £375.5m in co-funding.
Leadership and Future Ambitions
Chair Sally Bridgeland emphasised the bank's unique approach, stating: "With teams embedded across Wales, we take a relationship-driven approach that contrasts with the more transactional nature of traditional finance. These results demonstrate the power of sustainable capital to deliver long-term economic value."
Chief Executive Giles Thorley added: "As we approach the Wales Investment Summit, this milestone reflects the transformative impact of our work since 2017. By leveraging £636m in private co-investment and deploying recyclable funds, we’re building a legacy of growth and resilience for future generations."
Cabinet Secretary for Economy, Rebecca Evans, and First Minister Eluned Morgan both praised the bank's vital role in driving economic development, encouraging entrepreneurship, and supporting inclusive communities throughout Wales.
