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“As an international bank with a significant presence, we are focused on supporting the local economy as it approaches a critical period of recovery. The ABGF will provide SMEs with an additional option to finance the growth of their operations and meet their strategic ambitions,” said Noel McNamara, Chief Risk Officer of HSBC Australia and HSBC’s representative on the ABGF board.
The ABGF will take initial minority stakes of AUD5 million to AUD15 million in companies with turnover of AUD2 million to AUD100 million. It will fill a gap in the market that exists because SMEs often lack sufficient security to obtain a loan and can find it difficult to obtain private equity investment on suitable terms.
HSBC is also a founding shareholder of similar funds in the UK and Canada. The UK BGF has invested GBP2 billion in around 300 companies since its inception in 2011 and is now the most active growth investor in the world by volume.
“This type of vehicle has delivered tangible results in the UK over nine years and is on track to replicate those gains in Canada. We are optimistic that similar results can be achieved in Australia over time,” Mr McNamara said.
In Australia, the HSBC Group offers an extensive range of financial services through a network of 45 branches and offices. These services include retail and commercial banking, trade finance, treasury and financial markets, payments and cash management and securities custody. Principal HSBC Group members operating in Australia include HSBC Bank Australia Limited (ABN 48 006 434 162 AFSL/Australian Credit Licence 232595) and The Hongkong and Shanghai Banking Corporation Limited (ABN 65 117 925 970 and AFSL 301737)