HSBC is planning to make its debut in land financing in India
HSBC, the leading global bank, is considering using the FPI approach to fund real estate development in India. According to sources, it may also enter the private debt space in other sectors. "They are very big in Asia in terms of real estate private debt". They want to investigate it in India.Currently, HSBC is reviewing three to four such real estate transactions and expects to execute at least one this quarter. It intends to invest between 
250 and 500 crore in each project.
250 and 500 crore in each project.
The FPI approach is more flexible in terms of land finance, pre-approval financing, stranded projects, and other features that are not currently available through banking channels due to Reserve Bank of India requirements, HSBC India's overall wholesale lending book was $ 15.3 billion in H12023, up from $ 13.319 billion in December 2022. Wholesale loans included a $10.3 billion exposure to corporate and commercial lending, a $5 billion exposure to non-banking finance organizations, and a $1.9 billion exposure to the real estate industry.
HSBC Holdings is assembling a team of bankers to connect its corporate clients with the rapidly expanding world of private credit. The lender will tap into the many relationships it has with mid-sized companies around the world to link them up with private debt funds, arranging and sometimes taking part in the financing deals that ensue, , citing Vinay Raj, a managing director at HSBC, who is helping spearhead the effort.
HSBC's entry into Indian private lending comes at a time when global investors like Carlyle, Franklin Templeton, and others are looking at similar opportunities. Deals are being done in the space by Varde Partners, Oaktree Capital, PAG, Apollo Global Management, and others. Some lend through both alternative investment funds and FPI channels.
