TLDR:
- HSBC launches Venture Debt offering in Singapore and invests $1 billion in the ASEAN Growth Fund to scale up digital platform businesses in the region.
- The Venture Debt offering aims to provide flexible funding arrangements for high-growth companies, while the ASEAN Growth Fund focuses on supporting digital platform companies in ASEAN markets.
HSBC has launched its Venture Debt offering in Singapore and made a significant investment of USD 1 billion in the ASEAN Growth Fund to support the scaling up of digital platform businesses in the ASEAN region. The Venture Debt offering, totaling USD 150 million in Singapore, and the USD 1 billion ASEAN Growth Fund are intended to facilitate the scaling of high-growth companies, firms, and digital platform businesses. Additionally, the announcement complements the existing USD 200 million New Economy Fund, which aims to optimize the growth of early-stage startups in a rapidly changing economy.
The Venture Debt capability offered by HSBC will allow high-growth companies in Singapore, backed by venture capital or private equity investors, to access flexible funding arrangements to accelerate their development. This new offering provides longer-term and more flexible financial services to firms, supporting various funding requirements such as capital expenditure, working capital, and extending runway for up to three years. With HSBC Venture Debt, new economy users can access specialized financial structures, including equity warrant instruments.
Moreover, Singapore-based digital platform businesses enabling ecommerce development in the region will benefit from the launch of HSBC’s ASEAN Growth Fund. This initiative aims to achieve economies of scale across international markets, advance along the corporate lifecycle, and enhance asset portfolios. The fund, announced across six key markets in ASEAN, will provide funding to digital platform companies to grow and expand in the region.
The investment from the HSBC ASEAN Growth Fund focuses on scaling up digital platform companies and expanding their asset portfolios. By assessing operating metrics related to cashflow-generative asset portfolios, the fund aims to provide lending capabilities to companies scaling up through digital platforms. This approach is a shift from traditional financial products and will support new economy names, more established corporates, and non-bank financial institutions.
In addition to the Venture Debt and ASEAN Growth Fund initiatives, the existing USD 200 million New Economy Fund launched in Singapore aims to meet the working capital needs of early-stage startups and provide comprehensive financial solutions for new economy customers at different growth stages. HSBC Singapore is committed to optimizing the development of the startup ecosystem, connecting investors with transaction banking and funding needs, and expanding digital transaction banking offerings to support firms’ regional expansion needs.
