Welsh Government Invests £10m in International Convention Centre (ICC) Wales to Reduce Debt

Strategic Insights -

The Welsh Government has injected a further £10m into the International Convention Centre (ICC) Wales to support its debt reduction efforts. This investment comes as the venue seeks to break even following the financial impact of the Covid pandemic. ICC Wales, which opened in September 2019, suffered a prolonged closure due to the pandemic, which started in March 2020. The venue's debt with NatWest has been reduced by £17m to £29m, with the remaining balance being invested in the business to support its trading position.

Key Takeaways:

  • The Welsh Government has a 50% equity stake in ICC Wales through a joint venture company with Celtic Manor Ltd.
  • The £10m investment from the Welsh Government, matched by Celtic Manor, has reduced the venue's debt with NatWest from £46.5m to £29m.
  • The venue's debt reduction has resulted in a £8.5m reduction in the Welsh Government's balance sheet liability.
  • The joint venture company was established in 2017, with the Welsh Government providing a loan to fund the design and planning phase of the project.
  • ICC Wales directly employs 70 staff and has so far attracted events from around the world, welcoming over 90,000 delegates in 2024, generating an economic impact of £65.8m.
  • The venue's management team is optimistic about its future, citing the £20m investment by the joint venture partners as a sign of confidence in its performance.

Statistics:

  • £17m: the reduction in ICC Wales' debt with NatWest
  • £29m: the current debt of ICC Wales with NatWest
  • £10m: the Welsh Government's investment in ICC Wales
  • £20m: the total investment by the joint venture partners
  • £65.8m: the economic impact of ICC Wales in 2024
  • PS88.1m: the projected economic impact of ICC Wales by 2027
  • 2017: the year the joint venture company was established
  • 2024: the year in which ICC Wales welcomed over 90,000 delegates, generating an economic impact of £65.8m

Sources:

  • " Welsh Government invests £10m in International Convention Centre Wales". Wales Online.
  • "ICC Wales welcomes major businesses and events to Newport". ICC Wales