back Back

Micro Connect & HSBC sign $200m Asset-backed Loan Facility to boost MSMEs in China

By Gloria Mathias

February 06, 2024

  • asset loan facility
  • China
  • Digital Finance
Share

Micro Connect, Financial Services, FinTech, China, MSMEs, SMEs, Retail busineses, Series C Funding, MCEX, ealth Management, Exchange Platform, Online Transactions, Financial Solutions, Digital Finance, Hong Kong, Shariah Compliance, China, HSBC,asset loan facility, Micro Connect, which connects global capital with micro and small businesses, has announced the signing of a syndicated asset-backed loan facility of up to $200 million, with initial credit support of $50 million from HSBC.

Following a $25million asset-backed loan facility from HSBC in December 2022, the new loan facility is a validation of Daily Revenue Obligation (DRO) as an underlying asset as Micro Connect continues to expand the DRO-based investment and financing market for micro and small businesses.

The use of asset-backed facilities will help Micro Connect develop a vibrant ecosystem with broad participation from a diverse set of professional investors, micro and small businesses, and market intermediaries.

Charles Li, Founder and Chairman of Micro Connect, said, “We are delighted to continue our collaboration with HSBC as a long-term financing partner. This new facility is crucial for expanding our business model in China and beyond, as well as helping us transform into a fully disinterested operator of MCEX. We appreciate HSBC’s confidence in Micro Connect’s commitment to delivering innovative and accessible solutions to empower the underserved sectors of the economy.”

There are over 170 million micro, small, and medium enterprises (MSMEs) and self-employed individuals in China, which together make up 60% of the nation’s GDP and 80% of job creation. Yet traditional products, including both debt and equity, are not able to meet the unique needs of micro and small businesses.

The facility, an asset-backed financing solution extended from the HSBC New Economy Fund, will enable Micro Connect to grow its revenue-sharing asset class to give businesses more sustainable and affordable access to financing. HSBC has acted as the sole structuring bank, senior tranche lender, facility, and security agent, providing a flexible and scalable financing solution to support Micro Connect’s expansions.

Previous Article

February 06, 2024

AffiniPay launches in-person payment options for customers

Read More
Next Article

February 06, 2024

Tuum raises €25m Series B financing, led by CommerzVentures

Read More








IBSi Daily News Analysis

bahrain, islamic finance

February 22, 2024

asset loan facility

What makes Bahraini Islamic Finance industry so robust

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

February 22, 2024

Finastra & Unitas to offer treasury solution to banks in South Korea

Read More

February 22, 2024

Vidyut raises $10m in Series A Funding round led by 3one4

Read More

February 22, 2024

Bud & Fintech Galaxy bring AI-led Open Banking solutions to MENA

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023