US-headquartered private debt financing firm Ethos Asset Management has said it will allocate $250 million in the next three years to invest in Hong Kong firms or projects that help foster net-zero transition.
The firm plans to fund infrastructure projects in the city that support a low-carbon transition goal at a time when it is evaluating two projects — one in the real estate sector and the other tied with a conglomerate, valued at $60 million and $200 million, respectively — according to a press release on Tuesday.
The $250-million capital commitment is part of the $940-million investment that the US-based firm announced in August for investing across Southeast Asia and Hong Kong in the next three years.
“Our approach to financing is unique in its emphasis on both profitability and positive societal impact. By investing $940 million in Hong Kong and Southeast Asia over the next three years, we aim to support companies that are not only seeking financial success but also striving to make a meaningful difference in their communities and beyond,” Carlos Santos, founder and CEO at Ethos, said in the release.
Unlike in Southeast Asia where the size of investment ranges from $20-50 million, the ticket size in Hong Kong will either range from $10-49 million or over $50 million.
Ethos offers debt financing to businesses that is secured through financial guarantees in lieu of traditional collateral. The businesses are required to pledge up to 25% of their required financing in cash through a brokerage account, which would enable them to invest in the company.
The San Diego, California-headquartered investment firm generates profits through buying and selling fixed income assets and securities in its brokerage accounts across international banks as well as investing via debt in businesses and projects, Santos explained to DealStreetAsia in previous interview.