Bank ‘is ahead of lending target’
The bank — which recently reiterated its forecast for a return to profitability by 2014 — said in its half-year lending review that a further eight businesses received AIB seed funding during the first six months of 2012 and the two main funds which it supports are on track to make 20 new investments for the year, as a whole.
The bank said the review proved it remains the largest provider of seed capital funding in Ireland.
AIB provides SME investment through the AIB Seed Capital Fund and the Start-Up Accelerator Fund which have a combined available investment value of €75m.
They make up half of the four specialist seed funds, formed with the Government’s support, as part of the bank recapitalisation mandate.
Since the beginning of 2012, the main AIB seed capital fund has made five new investments — mainly across the medical device and IT sectors — with the smaller Accelerator fund supporting three new businesses.
As of the end of June, both funds had invested €21.3m in 59 businesses, according to the report, with the geographical spread reaching across Dublin, Cork, Limerick, Galway, and Donegal.
AIB head of business banking John Webb said: “Seed capital is now established as a vital part of funding for the ecosystem here in Ireland. Investee companies are not only receiving much needed equity, but the experience and expertise of the fund managers are also a valuable source of support for such businesses.”
Mr Webb said AIB is trying to encourage people to “come and talk to us” about new lending and refinancing, recognising that demand for new credit remains subdued.
AIB also has its eyes set on the agri market. Chief executive David Duffy recently said the bank aims to be the most significant lender to the sector in the coming years, adding that it is working with the Department of Agriculture on a number of new products and policies.
The bank is currently lending around €2bn to the farming community.
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