Han Kun advises Micro Connect on its first cross-border asset-backed loan facility with HSBC
December, 2022 - Beijing, Mainland China
On December 14, 2022, Micro Connect, a new financial market platform connecting global capital with China's micro and small businesses, announced its signing of a US$25 million asset-backed loan facility with HSBC. The signing represents an innovative breakthrough in Micro Connect's financing model as the company continues to expand its suite of funding channels to support its capital deployment among millions of micro and small businesses in China, making further contributions to China's real economy.
Charles Li, Founder and Chairman of Micro Connect, said, "We are pleased to have received this facility from HSBC, which marks a critical milestone as it opens up a new, sustainable funding channel for our long-term growth. As we continue to scale our micro and small business investments in China and beyond, we look forward to closer collaborations with HSBC as a long-term finance partner. We appreciate HSBC's confidence in Micro Connect and our conviction in developing new solutions to better support the underserved segments of the economy."
Han Kun, Micro Connect's perennial legal advisor, has been providing full-scope legal services in support of Micro Connect's business areas. The firm represented Micro Connect in its first cross-border asset-backed loan facility with HSBC and was deeply engaged in the transaction process by advising Micro Connect on all aspects of the deal, such as designing the deal structure, compliance analysis, due diligence, contract negotiations, and final consummation of the project. This marks yet another landmark deal for Han Kun's cross-border financing and structured financing practice.
About Micro Connect (https://microconnect.com/)
Micro Connect is a new financial market platform connecting global capital with China's micro and small businesses. The Company has created Daily Revenue Contracts (DRCs) as a new asset class for direct and diversified exposure to the daily, transparent cash flows from millions of stores in China's vibrant consumer economy, while making capital more accessible and affordable to business owners. Investment returns are collected securely via the Automated Repayment Mechanism, a network of digital infrastructure Micro Connect operates in partnerships with brands / franchises, financial institutions, and SaaS companies nationwide. To date, Micro Connect has invested in more than 1,800 stores with over 170 brands nationwide. With a fund platform, structured product solutions, and an exchange platform in the planning, Micro Connect offers efficiency and liquidity in small business investing for global professional investors and offers a new alternative to impact investing.
