Will the Cabinet Secretary confirm the total amount provided by the Welsh Government to the Development Bank of Wales since its creation?
The Development Bank of Wales recently marked the significant milestone of £1 billion total investment in Wales since it was established in 2017. The Welsh Government has provided £1.4 billion in total to the Development Bank of Wales over that 8-year period, which continues to be deployed by the Bank through debt and equity investments. Although most of this capital is for business lending, circa £615m is for delivery of housing support schemes, including Help to Buy Wales and Green Homes Wales.
The Welsh Government took the opportunity to further capitalise the Bank when it became clear that the Shared Prosperity Fund was to be directed toward local authorities. That step meant that the Development Bank of Wales was not forced to reduce activity as a result of EU Exit and has seen annual investment levels rise.
The Development Bank of Wales has received Financial Transactions Capital alongside general capital from the Welsh Government, which together provide a foundation of recyclable finance that will benefit Wales for the long-term. This enables the Bank to offer a range of finance including patient investment terms of up to 15 years. The Bank’s ability to deploy Financial Transactions Capital is an important component in the Welsh Government’s utilisation this type of repayable finance.