TLDR:
- HSBC launches $150 million Venture Debt offering in Singapore and a $1 billion ASEAN Growth Fund targeting new economy businesses.
- The new funds support high-growth companies in Singapore and digital platform businesses across Southeast Asia.
Global lender HSBC has launched a $150 million Venture Debt offering in Singapore and a $1 billion ASEAN Growth Fund to support new economy businesses. The Venture Debt offering provides flexible funding arrangements to high-growth companies in Singapore that are backed by venture capital or private equity investors. This financing solution can support a range of funding requirements such as capital expenditure, runway extension, or working capital for up to three years in tenor, along with specialized financing structures including equity warrant instruments.
The newly launched $1 billion ASEAN Growth Fund aims to help Singapore-based digital platform businesses supporting e-commerce in the region achieve economies of scale across multiple international markets, grow their asset portfolios, and advance along the corporate lifecycle. These new funds complement the existing $200 million New Economy Fund launched in 2021 to support the working capital needs of early-stage start-ups in Singapore.
Singapore’s thriving ecosystem of start-ups, investors, and accelerators has prompted HSBC to provide comprehensive financing solutions for new economy clients. The bank emphasizes supporting companies throughout their growth trajectory, understanding the challenges faced by start-ups in finding the right financing partner. With Southeast Asia’s digital economy experiencing rapid growth, the new funds aim to capitalize on the region’s potential and support digital companies as they expand within ASEAN and beyond.
HSBC’s recent survey of companies operating in Southeast Asia revealed that “digitalizing operations” is the top business priority, followed by “growth in Southeast Asia” and “research and development.” To meet the needs of businesses in the booming digital economy, HSBC is focusing on providing fuss-free digital banking solutions to support growth and expansion.
