HSBC Britain has set up HSBC Infrastructure Finance (HIF), a new unit aimed at seizing opportunities in infrastructure finance and project finance related to the global transition to a lower-carbon economy.
A senior banking executive informed the media platform ‘Reuters’, that the unit, led by former UK government minister Danny Alexander, will target significant market share in key sectors.
A memo sent to staff by Greg Guyett, HSBC’s CEO of Global Banking & Markets, said HSBC Infrastructure Finance (HIF) will target “a meaningful share” of both in key markets and incorporate parts of the bank’s Global Banking Real Asset Finance team, which includes infrastructure finance, export finance and portfolio management.
HSBC hopes that the new unit will help enhance the bank’s capabilities in debt origination and distribution while fostering new partnerships in both public and private sectors.
“HSBC has a leading presence in the regions where infrastructure financing and project finance advisory capabilities are critical to enabling a just transition to a low carbon economy,” Guyett told Reuters.
The unit will collaborate closely with HSBC’s CMB Infrastructure Finance team and oversee Pentagreen Capital, a sustainable infrastructure debt venture launched with Singapore investment firm Temasek.
Danny Alexander, a government minister till 2015, and currently Vice President for Policy and Strategy at the Asian Infrastructure Investment Bank (AIIB), will join HSBC in November, based in London. His appointment is expected to accelerate collaboration with governments, multilateral development banks, and corporate partners, supporting initiatives such as those of the UK government.
AIIB President Jin Liqun praised Alexander’s role in expanding the bank’s membership and shaping its strategic direction during his tenure since 2016.
Meanwhile, AIIB issued a press release on Tuesday informing that Danny Alexander, the Vice President for Policy and Strategy of the Asian Infrastructure Investment Bank (AIIB), will be departing the Bank in October at the end of his term to return to the United Kingdom.