Global lender HSBC said on Wednesday that it will be opening a $1 billion ASEAN Growth Fund to support new economy companies as well as a $150 million Venture Debt offering in Singapore.
In a statement, the bank said that high-growth Singaporean businesses supported by private equity or venture capital investors can now take advantage of HSBC’s Venture Debt offering, which offers adaptable funding options to help them grow faster.
A longer-term and more flexible financing option for businesses is offered by the new venture debt capability, which can support a variety of funding needs for up to three years, including working capital, runway extensions, and capital expenditures.
More specialized financing structures, such as those involving equity warrant instruments, are available to new economy clients through HSBC Venture Debt.
Furthermore, digital platform companies based in Singapore that facilitate e-commerce in the area can now take advantage of the recently established $1 billion ASEAN Growth Fund to expand their asset portfolios, gain corporate lifecycle advancement, and realize economies of scale across numerous international markets.
In addition to the $200 million New Economy Fund, which was established in 2021 to assist early-stage Singaporean start-ups with working capital requirements, the new Venture Debt and ASEAN Growth Fund offer new economy clients comprehensive financing options for a range of growth stages.
“Singapore has a thriving ecosystem of start-ups, investors, and accelerators which HSBC is part of,”
“A common pain-point we hear from start-ups is finding the right financing partner that understands their needs and can support them throughout their growth trajectory – from access to knowledge to skills and funding to strategic partnerships and network for their global expansion,” said Priya Kini, Head of Commercial Banking, HSBC Singapore.
“We know that profitability may not always reflect a company’s potential in its early stages. That is why we take a long-term view of potential growth by evaluating companies based on historical portfolio performance, key operating metrics, growth plans, and customer acquisition strategies,” she added.
The statement claims that with a compound annual growth rate of 16 percent, Southeast Asia’s digital economy is among the fastest-growing in the world, valued at $218 billion as of 2023 and predicted to reach $600 billion by the end of this decade.
