HSBC plans to create a $1 billion growth fund to support the expansion of digital platform companies in Southeast Asia

HSBC on Wednesday announced that it is establishing the ASEAN Growth Fund, a $1 billion growth fund that will lend money to Southeast Asian businesses that are expanding through digital platforms.

The bank, which has its headquarters in London, is leveraging the digital economy in Southeast Asia, which it claims is expanding at one of the fastest rates in the world. It projects that this economy will grow from $218 billion to $600 billion by the end of the decade.

“With a working population that is digitally native, increasing in size, and poised to consume more goods and services, especially on e-commerce, ASEAN has so much growth potential,” Amanda Murphy, head of commercial banking for HSBC’s South and Southeast Asia, stated at the fund’s launch.

In addition to the $1 billion loan fund, HSBC established a $150 million venture debt fund specifically targeted at the Singapore market to finance businesses in the nation-state supported by private equity or venture capital firms.