HSBC Leads Private Loan Facility of US$250m in FundPark
FundPark, the Hong Kong-based fintech company, has obtained a three-year US$250m private loan, with HSBC Holdings as the senior facility provider.
This marks the second such investment received by FundPark after it received a similar US$250m private loan facility in January 2024 with Goldman Sachs as the senior facility provider. This itself added to a previous loan of the same amount in 2022.
Now, the startup’s total pool of funds sits at US$750m following its latest loan.
Exploring FundPark
FundPark provides mainly Chinese SMEs in the ecommerce space with working capital, helping them scale up their international trade capabilities.
Unlike many Chinese organisations, investment in FundPark has been positive. HSBC’s move to back FundPark follows the same from Goldman Sachs, which represents a calculated gamble to invest in China’s private lending market rather than pull out of it as many others have done.
China was once seen as crucial to Asia’s private lending market until the nation’s recent property debt crisis forced many investors to pull back on their presence in the country.
However, FundPark sits in a growing area of China’s economy, ecommerce. Many private credit investors are pivoting their focus in these positive growth areas of the Chinese economy, chiefly the digital, data and consumer sectors, which ecommerce sits at the heart of.
It is in this way that FundPark offers a bright spot for direct lending in China as many investors in the region shift their focus away from the property market to various technology sectors.
FundPark’s supply chain financing solutions leverage the latest technologies to offer efficient and flexible funding options for SMEs. Its invoice financing and purchase order financing tools help businesses optimise cash flow and effectively manage working capital.
Its platform also connects SMEs with institutional investors, fostering a culture of greater financial stability for Asian enterprises.
HSBC: Why invest in FundPark?
HSBC’s asset-backed security financing in FundPark comes from its US$3bn ‘new economy’ facility which focuses on technology and healthcare in Hong Kong and mainland China.
After all, HSBC has long held a presence in Hong Kong as one of its key markets.
Per the deal, US$200m of the funds pumped into FundPark in this latest round will come from HSBC.
The global bank’s new economy fund is committed to supporting innovation ecosystems, and helping fast-growing and early-stage companies expand their services.
With a particular focus on Hong Kong, FundPark stands as a key beneficiary of this fund, which offers tailored debt solutions from Series A onwards in support of a business’ national or international expansion.
In March this year, HSBC launched its US$1bn fund to fuel Asean’s digital economy and scale up platform players.
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