HSBC has announced the launch of HSBC Infrastructure Finance (HIF), a new unit dedicated to climate-focused infrastructure and project finance opportunities. The unit will be led by Danny Alexander, former UK politician and Asian Infrastructure Investment Bank (AIIB) executive, who will start in November and report to Greg Guyett, CEO of Global Banking & Markets at HSBC.
The primary objective of HIF is to secure a substantial share of infrastructure and project finance deals, supporting HSBC’s commitment to achieving net-zero emissions by 2050. The unit will integrate parts of HSBC’s Global Banking Real Asset Finance team, including infrastructure finance, export finance, and portfolio management. Greg Guyett highlighted HSBC’s prominent role in regions crucial for financing a low-carbon economy.
A global transition to a low-carbon economy is projected to require $6.9 trillion annually by 2030, as estimated by the OECD, World Bank, and United Nations. HSBC’s strategic shift positions it to benefit from this significant market. "Green is the new gold," emphasises the potential high returns from backing global climate initiatives.
HIF will work closely with HSBC’s CMB Infrastructure Finance team and manage Pentagreen Capital, a sustainable infrastructure debt unit launched with Singapore’s Temasek. An internal memo stated, “HIF will facilitate the deployment of HSBC’s balance sheet, supporting project development in partnership with clients.”
Until Alexander takes on his role, HIF will be co-led by Alexi Chan and James Dynon, ensuring a strong start in reshaping infrastructure finance towards sustainability. AIIB President Jin Liqun praised Alexander for his contributions to AIIB’s expansion and strategic direction.
HSBC plans to recruit around 200 personnel for its investment banking and infrastructure unit over the next two years as part of a broader strategy to capitalise on macro trends in dealmaking. Guyett noted, “There will also be dedicated second line infrastructure risk expertise alongside the build-out of our first line teams.”
HSBC’s establishment of HIF underscores its commitment to advancing the low-carbon economy through strategic infrastructure investments and collaborations, enhancing its position in the sustainable finance market and contributing to global climate objectives.
