Parkson Credit Raises RM150m Through HSBC Facility
Source: The Star Online, 13th March 2020, https://www.thestar.com.my/business/business-news/2020/03/13/parkson-credit-raises-rm150m-through-hsbc-facility
KUALA LUMPUR: Parkson Credit Sdn Bhd (Parkson Credit) has raised RM150mil through HSBC Malaysia’s bespoke receivables purchase facility.
The bank said on Friday the proceeds from the facility will be used to finance Parkson Credit’s expansion in Malaysia; a key initiative in tandem with the company’s strategy to increase its local footprint.
Hong Kong listed Parkson Retail Group Ltd owns 70% of Parkson Credit and the remaining 30% by Bursa Malaysia listed Parkson Holdings Bhd.
The company provides consumer loans to individuals for the purchase of motorcycles and other consumer goods.
HSBC Malaysia has been providing financial support to Parkson Credit since the company’s inception in 2014.
In addition to facilitating the company’s expansion within the country, the Receivables Purchase Facility will play a crucial role in boosting Parkson Credit’s financing business.
“Clients increasingly require scalable yet flexible financial solutions that will support their development and expansion. HSBC is excited to continue supporting Parkson Credit in Malaysia with financial services that will help propel their business and enable them to achieve their growth ambitions.”, said Omar Mahmoud, head of global banking, HSBC Malaysia.
Danny Poh, senior general manager of Parkson Credit said the facility supports Parkson Credit’s business growth via the efficient application of collateral with enhanced flexibility and scalability.
“The bank’s understanding of our business and their development of tailor-made financing solutions that accommodate our growth strategies continue to make HSBC our partner of choice and have been the fundamental basis of our continued working relationship.” Poh said.
Christina Cheah, head of large local corporates, global banking, HSBC Malaysia said achieving and maintaining an efficient and flexible cash flow is essential to the success of growing businesses.
“HSBC’s receivables finance solutions help organisations free up working capital to keep their business running smoothly while allowing them to focus on other strategic initiatives”, Cheah said.