HSBC launches $150M venture debt program to boost Singaporean firms’ growth

HSBC launches $150m venture debt to help Singapore firms accelerate their growth.

The program will offer a more adaptable and long-term financing solution for various financing needs, including capital expenditures, operational runway expansion and working capital for up to three years.

By taking advantage of the offer, companies will have access to more specialized financing structures, including those using share warrant instruments, which have been specifically designed for new economy companies.

The head of Commercial Banking at HSBC Singapore, Priya Kini said the program will particularly help start-ups, who are often left searching for the right financial partner who understands their needs and can support them throughout their growth trajectory.

She added that companies will be assessed based on their historical portfolio performance, key operating metrics, growth plans and customer acquisition strategies.

HSBC has unveiled its ASEAN Growth Fund alongside the venture debt program, targeting the rapidly growing economies of six ASEAN countries. The objective is to enable businesses through digital platforms.

This initiative is in addition to the US$200 million New Economy Fund introduced in 2021 to cater to the working capital requirements of startups in Singapore during their early stages.

Collectively, these financial initiatives provide a comprehensive suite of services tailored to the varying needs of new economy enterprises at different phases of their growth.

A specialized team has also been established to aid investors in fulfilling their banking and financing needs.

In addition, HSBC aims to enhance its digital transaction banking services to support businesses in expanding across the region.

Through platforms like HSBC SmartServe, HSBC TradePay and HSBC Omni Collect, the process of opening business accounts, facilitating trade lending and establishing digital payment infrastructure will be streamlined.