Aug. 24 (Bloomberg) -- Deutsche Bank AG, Germany’s biggest bank, said it expects a fund started in the first quarter aimed at easing financing for small and mid-sized businesses in the country to make its first payments this year.
“We expect the money to start flowing in the fall,” spokesman Ronald Weichert said by telephone today. About 150 companies have applied for equity capital and the applications are being reviewed, he said.
Deutsche Bank said in February that it would provide initial capital of 300 million euros ($379 million) for the fund after Chancellor Angela Merkel called on lenders to help avert a credit crisis. Germany’s economy grew in the second quarter at the fastest pace since the country’s reunification two decades ago, easing concern about a lack of financing.
The so-called Mittelstand fund will provide equity capital of 2 million euros to 10 million euros to companies with revenue of as much as 100 million euros. The fund, overseen by external fund manager M Cap Finance, will provide equity capital in exchange for participatory rights, or shares in the company without voting rights, and interest payments.
Commerzbank AG, Germany’s second-biggest bank, and state development lender KfW Group announced a competing fund in June with a volume of as much as 500 million euros.
To contact the reporter on this story: Aaron Kirchfeld in Frankfurt at firstname.lastname@example.org