HSBC
The speed with which China’s Belt and Road Initiative has redrawn the trade map, not just in Asia but globally, is astonishing. Any infrastructure project rolled out in a nominated belt-and-road country can now be considered a BRI project. When it comes to infrastructure finance in south Asia, it’s hard to beat HSBC.
The lender is a big presence in countries and in large projects across the region, underwriting debt sales and IPOs and piecing together financing solutions for complex infrastructure projects.
Two regional BRI-related infrastructure projects stand out over the last year. First up is the $117 million repowering of Bangladesh’s largest power station, Ghorashal Unit 3: the project is led by a consortium consisting of GE and China National Machinery and Equipment Import and Export Corporation, while the expertise in infrastructure financing was provided by HSBC’s market-leading Sinosure team.
Another involved securing $44 million in funding for the expansion of Bandaranaike International Airport in Sri Lanka, which handles more than 98% of the international traffic entering and leaving the island. HSBC, under Sri Lanka chief executive Mark Prothero, acted as sole arranger, agent and security agent on the deal, which aims to double the airport’s overall capacity for aircraft and passengers within the next five years – no small issue, considering the importance of the domestic tourism sector.
The contractor on the project was a mainland state enterprise, China National Aero Technology International Engineering Corporation, highlighting the growing of trade relations between China and Sri Lanka.