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Infrastructure Debt

We invest across the full capital spectrum for infrastructure debt, with a proven track record in senior secured infrastructure debt. Equipped with a fiduciary origination strategy approach to transactions that meets investors’ investment objectives and risk-return requirements, we offer a flexible platform of both separately managed accounts, co-investment programmes and pooled funds.

Source: Award issued by Insurance AsiaNews as of May 2020. The award assessment is based on business successes in 2019, assets gathered, new clients won, mandates gained from existing clients or example of outstanding performance.

HSBC Infrastructure Debt Investment Capabilities

Why invest in infrastructure debt?

Relatively attractive yields and better risk-adjusted potential returns

♦ Favourable yield comparison to corporate and sovereign credit of similar or better credit quality and duration.

♦ Liquidity/complexity premium potential

Improved regulatory* capital efficiency

♦ Efficient capital treatment for Solvency II Qualifying Infrastructure Investments, even when unrated. Investors often rely on internal / manager credit rating estimates.

Volatility control

♦ Relatively predictable cash flows with lower volatility.

♦ Low correlation to the market and traditional asset classes.

♦ Best exploited by constructing diversified portfolios by duration, sectors, geographies

Credit risk management

♦ Investment-grade or strong non-investment-grade quality, predictable cash flows, robust covenant protection and high value collateral, leading to lower default rates and higher recovery rates than comparable credit**

Improved liability hedging/matching

♦ Maturities of up to 40 years offering ability to target bespoke durations and formats

Source: HSBC Asset Management, June 2020. For Illustrative purposes only.
*Refers to Solvency Capital under Solvency II. **Moody's Investors Service, 6 August 2019.
Investment involves risk and past performance is not an indicator of future returns.

Why HSBC Asset Management for infrastructure debt?

A proven track record*as an infrastructure credit specialist

♦ Strong track record and a proven ability in deploying assets

♦ Breadth of expertise across senior and junior infrastructure financing markets globally

♦ Bespoke investment solutions that meets the needs of Asian insurers

Differentiated global infra asset sourcing capabilities

♦ Benefitting from a global network of origination relationships, including those of HSBC Bank in the infrastructure market

♦ Strong brand presence and deep relationships across developed and developing infrastructure markets

♦ This has provided access to a globally diversified portfolio, screening more than 550 investment opportunities over the past two years.

An award-winning^, dedicated investment platform

♦ Highly experienced senior investment team, averaging more than 20 years in global infrastructure financing across market cycles.

♦ Rigorous investment process including a robust credit assessment framework that sits within an overarching active portfolio construction and management approach.

♦ Ability to cater for different investment formats including bonds, loans and notes.

* Strong track record of delivering a yield premium averaging 1 per cent p.a. over public corporate bonds
^ Award issued by Insurance AsiaNews as of May 2020. The award assessment is based on business successes in 2019, assets gathered, new clients won, mandates gained from existing clients or example of outstanding performance. Our dedicated investment platform is able to cater for different investment formats (i.e. bond, loan, notes) & products (i.e. fixed vs floating) across a range of sectors and longer dated tenors so as to maximize the investible opportunity set.

Investment involves risk and past performance is not an indicator of future returns.
Source: HSBC Asset Management June 2020.

A dedicated specialist team

Depth of Expertise

Strong Experience

An infrastructure credit specialist

Investment professionals solely dedicated to infrastructure debt

Infrastructure Investment Forum members overseeing each transaction

Years average experience in the infrastructure debt Investments team

Years average infrastructure debt experience among the Portfolio Managers

♦ Strong track record of delivering illiquidity premium

♦ A proven ability in deploying assets

Risk Warning

This page is intended for Professional Clients Only and should not be distributed to or relied upon by Retail Clients.
In Australia , this document is issued by HSBC Bank Australia Limited ABN 48 006 434 162, AFSL 232595, for HSBC Asset Management (Hong Kong) Limited ARBN 132 834 149 and HSBC Asset Management (UK) Limited ARBN 633 929 718. This document is for institutional investors only, and is not available for distribution to retail clients (as defined under the Corporations Act). HSBC Asset Management (Hong Kong) Limited and HSBC Asset Management (UK) Limited are exempt from the requirement to hold an Australian financial services license under the Corporations Act in respect of the financial services they provide. HSBC Asset Management (Hong Kong) Limited is regulated by the Securities and Futures Commission of Hong Kong under the Hong Kong laws, which differ from Australian laws. HSBC Asset Management (UK) Limited is regulated by the Financial Conduct Authority of the United Kingdom and, for the avoidance of doubt, includes the Financial Services Authority of the United Kingdom as it was previously known before 1 April 20 13, under the laws of the United Kingdom, which differ from Australian laws.