Banking News

HSBC ties up with UK Export credit agency to fund MSME imports


MUMBAI: HSBC has partnered with the UK export credit agency UK Export Finance to provide funding support to MSMEs for imports from the UK. The partnership envisages an intent to establish a financing programme of up to GBP 100 million

HSBC India and UKEF today signed a Letter of Intent (LoI), which enables them to work together on opportunities relating to UKEF’s guarantee-backed structures. HSBC India and UKEF will work closely to originate, structure, and extend financing and credit facilities to Indian MSMEs.

“The partnership with UKEF will help leverage our inherent synergies and boost trade and economic ties between India and UK” said Hitendra Dave, CEO, HSBC India. “ MSMEs in India are eager to grow, internationalise and adopt best global practices to compete in a globally connected world. Given our large franchise in India and our global strengths, we are ideally placed to support the ambitions of these small businesses through our partnership with UKEF.”

India was UK’s 12th largest trading partner in the four quarters to the end of Q2 2023, accounting for 2.1% of total UK trade. In 2021, around 7,500 UK SMEs, with around 317,300 employees, exported goods worth £1.2 billion to India, accounting for 85% of all UK businesses exporting goods to India and 28% of the total UK goods exports to India.

“With more than 600 UK companies already finding success in India, the opportunities for UK exporters in India are huge” said Harjinder Kang, HM Trade Commissioner for South Asia & Deputy British High Commissioner, Western India. “This partnership between UKEF and HSBC India will further support the ambition of mobilising investment into India of up to £3 bn by 2025.”


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