Commonwealth Bank Pledges $15 Million to SMEs through ASX Enterprise Market

The Commonwealth Bank and the Australian Stock Exchange (ASX) today announced details of their joint venture involving the ASX's Internet-based Enterprise Market (e.m). In the initial phase, $15 million will be injected into emerging high-growth businesses. The Commonwealth Bank will identify suitable medium-sized businesses which have a need for both equity and debt funding. Those businesses will be referred to the ASX to raise equity through e.m's nationwide network of investors and business advisers. The Bank will provide debt funding for each business, subject to the equity being obtained. The joint venture is being supported by financial services group Ord Minnett and some of Australia's leading financial services organisations - including stockbrokers Dicksons, accounting firm William Buck, management consultants Bentley's MRI and corporate advisers Heath+Fletcher and Pacific Capital Corporation. "This arrangement is designed to make substantially more funding available to some of Australia's brightest businesses," says Commonwealth Bank Head of Products, Neville Cox. "Each day we see potentially successful businesses which are experiencing rapid growth but require further equity support so they can secure lending facilities. These are businesses the Bank values as customers and we want to help them reach the next stage in their development". "The Enterprise Market has an outstanding record in raising private capital for growing businesses and we expect it to help our customers fulfil their development goals". ASX Managing Director Richard Humphry believes that the joint venture is an important step towards a more vibrant capital market for developing Australian companies. "The Enterprise Market is the perfect partner for the Commonwealth Bank. In the last 12 months, companies registered with e.m have raised more than $20 million from private investors at an average of $1.5 million for each business. Individual companies have raised between $120,000 and $4.8 million." John Morrison, Head of Funds Management for Ord Minnett, says the initiative fits comfortably with the company's future directions. "This is a welcome venture to fill an important gap in the market place," he says. "We're delighted to be playing a prominent role in its development. It's consistent with our own direction in funds management products for investments in smaller, good-quality, growing companies." e.m is an Internet-based alternative capital market which brings together companies offering investment opportunities, advisers and investors - helping emerging businesses raise capital and increasing the chance for investors to take a stake in go-ahead Australian enterprises. More details about the Enterprise Market are available on 1 800 016 766, or through the e.m web site: www.em.asx.com.au.