HSBC in talks to finance major infrastructure jobs

HongKong and Shanghai Banking Corp. will look at funding major infrastructure projects in the Philippines, as the private sector now takes the lead in building tollways and power plants.

“We would be extremely interested in road projects,” HSBC Philippines outgoing chief executive Mark Watkinson told reporters in a news briefing at the Sofitel Philippine Plaza Hotel in Manila Wednesday.

Watkinson, who is moving to Canada where he will serve as the bank’s executive vice president for commercial banking, will be replaced by Tony Cripps, who is currently the head of global banking and markets in HSBC Australia. Cripps will begin his Philippine stint in August.

Watkinson said HSBC would like to take advantage of growth opportunities in the Philippines, including infrastructure where the private sector is now interested.

Companies such as San Miguel Corp. and Metro Pacific have been competing against each other to bid for the right to construct or develop tollways, water projects and airports.

HSBC helped San Miguel raise P38.8 billion from the debt market last year, Watkinson said.

He said the bank had also helped finance the construction of several energy-related projects and was now in talks with several companies for infrastructure projects. He did not identify the projects.

The bank is optimistic about the outlook for the Philippines, following the successful holding of the May election. “The economy is quite positive. There is a good story for the Philippines for the next couple of years,” Watkinson said.

Cripps said the proximity of the Philippines to China positioned it well to take advantage of the opportunities in Asia-Pacific, which is projected to become the engine of global economic growth over the next 10 years.

“The Philippines is a part of that wonderful growth story,” Cripps said. –Roderick T. dela Cruz, Manila Standard Today