Conference Magazine - Deutsches Eigenkapitalforum

Financing
“Basel III affects the banks and, therefore,
it also affects the SMEs”
Interview with Lutz Weiler about the financing needs of
German small and medium enterprises (SMEs), the effects
of Basel III and interest equity options
Conference Magazine: Mr Weiler, equity is in demand
again, specifically by smaller companies. How do you
assess the current situation?
Weiler: As an universal bank we have a good overview of
the private equity needs of our customers and a close ear to
the financial markets. Therefore, we can tell you that getting
equity wasn’t an issue for smaller companies for a long
time. Up until the financial and economic crisis, banks
happily provided easy financing – then they suddenly faced
big financial problems themselves. This led banks to
change their policies with regard to equity financing, which
puts up new obstacles for companies.
Conference Magazine: With what effect?
Weiler: Companies do not only have to think about their own
equity but about their whole equity structure. With PREPs,
roughly EUR 5.5 billion is probably wandering like a ghost
through the country coming to maturity in 2012 or 2013.
Even if it is only half of that, this amount finally has to be replaced
by equity. That’s a rather large chunk. Many of those
affected haven’t really thought about follow-up financing yet.
Conference Magazine: What about private equity as an
alternative?
Weiler: The tables have turned. Before the crisis I would
have been able to only name five or six private equity companies
that would have been satisfied with a minority stake.
Now the whole private equity market is saying: of course we
also do minority shareholdings! However, some are only
apparent minorities, granting themselves disproportionate
rights in return. One has to find a balance here.
Conference Magazine: Why is that a problem?
Weiler: No, don’t get me wrong. In general private equity
issuers develop the company with the best of intentions
and in line with company interests. Nevertheless, negative
examples are picked out. In fact, it is the professionalization
of supervisory bodies or the placement of advisory councils
through private equity issuers that position a medium sized,
fast growing company well to excel in the future.
Page 46 Deutsches Eigenkapitalforum Fall 2010
Lutz Weiler is CEO of equinet Bank
AG. The universal bank offers its cus
tomers tailor made solutions for all fi
nancing and capital market issues
with a special focus on medium sized
companies.
Lutz Weiler, CEO, equinet Bank AG
Conference Magazine: Company bonds are currently the
instrument of choice – the market is booming.
Weiler: Yes, company bonds are increasingly gaining
importance. Investors prefer listed bonds, a developing
phenomenon still in the early stages as seen by Bondm in
Stuttgart, for example. We welcome such a development in
the market since now also bonds with a volume from EUR
30 to 150 million are accepted in the market.
Conference Magazine: And bonus certificates?
Weiler: They actually fit into this repertoire but are not
de sired by investors at all times. I think a standardised
bonus certificate with sufficient liquidity and reasonable
profitability is also attractive.
Conference Magazine: Basel III will probably require some
banks to first of all take care of themselves. Does this
support the argument per stock exchange listing?
Weiler: A very important point. Small and medium sized
enterprises discovered Basel II quite late. They practically
slept through it. After the financial crisis, sensitivity to and
awareness of it has heightened. Companies know: Basel III