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Fintech firm AwanTunai secures Rp 300 billion debt facility from HSBC
Prior to this deal, HSBC provided a US$30 million loan for Indonesian aquatech firm eFishery and a $100 million loan for buy now, pay later platform Akulaku.
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HSBC managing director and head of wholesale banking Riko Tasmaya (left to right), HSBC head of commercial banking for Southeast Asia Amanda Murphy, AwanTunai CFO Shilpa Gautam and Awan Tunai cofounder Rama Notowidigdo pose for a photo following an interview with The Jakarta Post in Jakarta on July 23, 2024. (HSBC/-)
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SBC announced has provided a Rp 300 billion (around US$18.5 million) debt facility for Indonesian fintech firm AwanTunai. The deal is part of the London-based bank’s ASEAN Growth Fund, a $1 billion lending fund launched in March and aimed at companies scaling up through digital platforms across Southeast Asia.
HSBC head of commercial banking for Southeast Asia Amanda Murphy said the fund differed from traditional banking loans as it focused on the business potential of the borrower rather than on their historical performance or the availability of collateral.
On the other hand, it differed from venture debt as HSBC was not seeking potential settlement in the form of an equity stake in the borrower.
“There’s no warrant […] we're never going to influence what decisions are taken and how the companies are run. Whereas I suspect [that’s the type of] conversations companies are having [with venture capital firms]. So, it's a different relationship,” Amanda told The Jakarta Post on Tuesday.
Prior to this deal, HSBC provided a $30 million loan for local aquatech firm eFishery and another $100 million facility for buy now, pay later platform Akulaku. The bank confirmed that both of these deals with Indonesian start-ups were also part of the ASEAN Growth Fund.
According to Amanda, the fund reflects a changing market landscape, which encouraged the bank to do things differently.
“When our clients move into new economies, we also have to move and support them. We have to learn how to build different models, assess and manage risks, as well as be clear about what our risk tolerances are,” she explained.
