SINGAPORE, March 27 Reuters HSBC on Wednesday said it is setting up a 1 billion growth fund called ASEAN Growth Fund that provides lending to companies that are scaling up via digital platforms across Southeast Asia.

The Londonheadquartered bank is tapping into Southeast Asia39;s digital economy, which it said is among the world39;s fastest growing, expecting it to hit 600 billion in value by the end of the decade from 218 billion last year.

With a working population that is digitally native, increasing in size, and poised to consume more goods and services especially on ecommerce, ASEAN has so much potential for growth, said Amanda Murphy, HSBC39;s South and Southeast Asia head of commercial banking, at the launch of the fund.

Besides the 1 billion lending fund, HSBC also launched a 150 million venture debt fund dedicated to the Singapore market, to provide financing to companies in the citystate that are backed by venture capital or private equity firms.

Reporting by Fanny Potkin and Yantoultra Ngui; Editing by Tom Hogue

Source Reuters