HONG KONG, 9 April 2019 – AIA Group Limited (“AIA”; or the “Company”; stock code: 1299) today announced that it has appointed HSBC Global Asset Management to provide infrastructure debt advisory services, the mandate will include identifying and providing access to infrastructure debt opportunities across Asia-Pacific.
Strong economic development across Asia-Pacific is leading to a greater demand for life and annuity products, which need to be supported by long-dated investments. AIA is focused on playing a leadership role in driving economic and social development across the region. One way in which the Group is both serving the needs of its customers and the region’s economies is through exploring opportunities to invest in infrastructure development, the establishment of which is inextricably linked to economic and social advancement. Through targeted investments AIA can build exposure to infrastructure debt while playing a crucial role in contributing to the Asia’s continued economic growth.
HSBC Global Asset Management will provide access to infrastructure debt assets in certain Asia- Pacific jurisdictions in accordance with agreed investment parameters. HSBC Global Asset Management’s primary focus will be on sourcing private fixed rate investments and positions as anchor investor on more widely distributed bonds.
The investments will be denominated in either USD or the local currency of the respective investment country and have a target portfolio weighted average life of between 10-15 years. The focus sectors will be renewable energy, transportation, Private Public Partnerships (PPPs), conventional energy, utilities, transmission, energy infrastructure (including LNG), social infrastructure and telecommunications. The first investment under the mandate has already been completed.
Mark Konyn, Group Chief Investment Officer for AIA Group said, “AIA is committed to holding a diverse range of assets, continued investment in infrastructure development across the region in which we operate presents an opportunity to support economic development while also ensuring we have alignment with the long-dated liabilities resulting from the provision of financial protection for our policyholders. We’ve chosen to work with HSBC Global Asset Management because they have unique insight and experience in infrastructure across the region, and a proven track record of sourcing opportunities.
“We look forward to a successful relationship.” Konyn concluded.
Glenn Fox, Head of Infrastructure Debt Investments at HSBC Global Asset Management added, “A strategic priority of the infrastructure debt business is to facilitate the growth of a market for institutional investors in infrastructure debt in the Asia-Pacific region. We see our relationship with AIA as being a key milestone in achieving this goal.”
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AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, Cambodia, a 97 per cent subsidiary in Sri Lanka, a 49 per cent joint venture in India and a representative office in Myanmar.
The business that is now AIA was first established in Shanghai a century ago in 1919. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$230 billion as of 31 December 2018.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 33 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
About HSBC Global Asset Management
HSBC Global Asset Management should be referred to in full at all times to avoid confusion with any other financial services firms.
HSBC Global Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Global Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 26 countries and territories, delivering global capabilities with local market insight. As at 31 December 2018, HSBC Global Asset Management managed assets totalling US$451bn on behalf of its clients. For more information see www.global.assetmanagement.hsbc.com
HSBC Global Asset Management is the marketing name for the asset management businesses of HSBC Holdings plc.
About HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide across 66 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of US$2,558bn at 31 December 2018, HSBC is one of the world’s largest banking and financial services organisations.
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