British bank HSBC on Wednesday announced plans to set up a $1 billion growth fund to scale up digital platforms in Southeast Asia.

The ASEAN Growth Fund will provide lending to companies that are scaling up via digital platforms across the region.

Companies ranging from established corporates to non-bank financial institutions will be able to tap into the funding, with HSBC saying that it would assess operating metrics tied to the firms’ cashflow-generative asset portfolio.

The bank said it was keen to tap into the region’s digital economy, which is among the world’s fastest-growing. HSBC said that it was worth $218 billion in 2023 and is expected to hit $600 billion in value by 2030.

Amanda Murphy, HSBC's South and Southeast Asia head of commercial banking, said: "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 potential for growth.”

Ahmed Yeganeh, head of Wholesale Banking at HSBC Vietnam, added: “ASEAN trade and foreign direct investment (FDI) have been an integral part of the Vietnam success story, and looking to the future, I am excited by the emerging opportunities it presents for the economy.”

HSBC has also launched a $150 million venture debt fund in Singapore which it said will provide financing to companies that are backed by venture capital or private equity.

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