APRILASIA BUSINESS OUTLOOK8NEWSROOMHSBC SHIFTS INVESTMENT BANKING IN ASIA & THE METhrough its Infrastructure Division, Keppel Ltd. ("Keppel") has signed a non-binding Memorandum of Understanding with the Japan Bank for International Cooperation ("JBIC") to establish a clean energy supply chain in Asia that will advance the energy transition and facilitate sustainable digitalization in the region.The MOU seeks to enable collaboration across multiple areas including renewable energy, energy trade transmission lines, hydrogen, ammonia, data centres and subsea cables in Asia. This builds upon Keppel's deep knowledge of sustainability and connectivity solutions, and JBIC's financing capabilities and business networks, to contribute towards carbon neutrality and economic growth in Asia. It also sets the stage to provide potential financing for Keppel's current work to import electricity and develop low-carbon energy. Mr. Chua Yong Hwee, Managing Director, Energy Nexus at Keppel's Infrastructure Division, indicated that the partnership with JBIC is a great step forward in supporting Asia's low carbon future. The objective is to develop a strong energy supply chain in Asia that will set new standards for sustainability by leveraging Keppel's energy and digital infrastructure expertise along with JBIC's financial strength and Japanese technology. As CEO Georges Elhedery explained to Bloomberg Television, HSBC Holdings will increase its investment banking activity in Asia and the Middle East after pulling back from North America and Europe. Elhedery, who stepped into the top spot in September, said HSBC is redirecting US$1.5 billion in "cost savings" into higher growth regions. He stated that it includes a significant investment in strengthening debt and financing capabilities around the globe while further establishing its presence in the equity capital markets and M&A advisory in the Middle East.The move followed a more general reset of the organization's structure done under Elhedery's direction, including the merging of commercial banking with investment banking, the establishment of the UK and Hong Kong operations as independent entities, and scaling back on equity and M&A businesses in and around Western markets. HSBC expects to incur restructuring charges of approximately US$1.8 billion over the next two years, much of which is related to severance, and most decisions have been made.They have reduced the senior management ranks, taking the number of their key operating teams from 18 to 12, and with some investment bankers already on short-term contracts. Their top shareholder Ping An Insurance has given their support to these changes, which is a stark contrast from their much more combative stance in 2022. HSBC shares in Hong Kong have gained roughly 30% since Elhedery took over. KEPPEL COLLABORATES WITH JBIC TO ENHANCE CLEAN ENERGY SUPPLY CHAIN IN ASIA
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