HSBC Launches $1 Billion ASEAN Growth Fund to Empower Southeast Asian Startups

HSBC has unveiled plans to establish a $1 billion ASEAN Growth Fund to provide lending to companies expanding through digital platforms across Southeast Asia. The bank’s recognition of Southeast Asia’s rapidly growing digital economy is forecasted to reach $600 billion by the end of the decade, a leap from $218 billion in value last year.

This sizable fund targets a broad spectrum of entities, including new-economy businesses, established corporates, and non-bank financial institutions seeking to enhance their presence across multiple regional markets. 

HSBC’s new venture debt capability offers Southeast Asian companies a longer-term and adaptable financing solution to address various funding needs such as capital expenditure, extending operational runways, or enhancing working capital for up to three years. This venture debt option allows new economy clients to access specialized financing structures, including those involving equity warrant instruments, catering to their evolving financial requirements.

Moreover, Singapore-based digital platform businesses supporting e-commercea in the region now have access to HSBC’s newly launched $1 billion ASEAN Growth Fund. This fund aims to achieve economies of scale across multiple international markets, support asset portfolios, and facilitate progression along the corporate lifecycle. 

HSBC’s head of commercial banking for South and Southeast Asia, Amanda Murphy, emphasized the vast growth potential of ASEAN, particularly with its digitally native and expanding workforce poised to increase consumption of goods and services, particularly in the e-commerce sector.

Amanda Murphy, HSBC’s head of commercial banking for South and Southeast Asia, highlighted the funding challenges faced by some corporates in the region. She noted that the bank’s offerings aim to address these obstacles and facilitate growth opportunities.

The newly introduced Venture Debt and ASEAN Growth Fund complement the existing $200 million New Economy Fund launched in 2021, which caters to the working capital requirements of early-stage startups in Singapore. 

HSBC’s comprehensive proposition enables companies to rely on a single institution to serve all major ASEAN markets and provide support across their operations, according to Priya Kini, Head of Commercial Banking at HSBC Singapore. 

She spoke about the bank’s support for startups, which addresses their diverse needs by offering not just financing but also access to knowledge, skills, strategic partnerships, and networks for global expansion. With Southeast Asia’s digital economy experiencing rapid growth and expected to reach $600 billion by the end of the decade, HSBC seeks to capitalize on this potential and contribute to the region’s flourishing digital landscape.

Singapore’s reputation as the most innovative economy in Asia has made it an attractive destination for new economy businesses. Its ecosystem has a culture of innovation, stringent intellectual property protection laws, and its stature as an international financial center. 

Moreover, strong government support in the form of grants and tax incentives further makes Singapore a regional technology hub, supporting the growth of over 5,000 startups, 527 investors, and 247 incubators and accelerators.

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