HSBC has announced the launch of a $1 billion ASEAN Growth Fund to support the growth of businesses in the Association of Southeast Asian Nations (ASEAN) region. The fund will be managed by HSBC Global Asset Management and will focus on companies in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. HSBC plans to invest in sectors such as technology, healthcare, and renewable energy, aiming to capitalize on the economic potential of the ASEAN region, which is projected to become the fourth-largest economy in the world by 2030. The launch of the fund is part of HSBC's strategy to expand its presence in the ASEAN market.
Carro, Asia-Pacific’s largest online used car marketplace, is the first client to tap into HSBC's ASEAN Growth Fund. The fund aims to support high-growth champions in Southeast Asia's digital economy by providing working capital. Carro operates in seven markets, generates nearly $1 billion in revenues, and achieved over 11x year-over-year EBITDA growth. HSBC arranged a multi-currency loan facility for Carro through the fund. Carro's CEO, Aaron Tan, praised HSBC for recognizing the need to support regional start-ups. The financing will strengthen Carro's balance sheet and add $75 million to its liquidity.
This move by HSBC to provide funding to Carro through its ASEAN Growth Fund demonstrates the bank's commitment to supporting high-growth companies in the digital economy of Southeast Asia. Carro, as Asia-Pacific's largest online used car marketplace, is well-positioned to benefit from the working capital provided by the fund. The financing will strengthen Carro's financial position and enhance its liquidity, allowing the company to further expand its operations and capitalize on the growing demand for online car sales in the region. HSBC's support for Carro also highlights its recognition of the importance of regional start-ups and its commitment to fostering their growth and success.
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