Never miss out on an investment opportunity

Securities financing lets you hold on to the investments in your portfolio while still giving you access to your capital for investment purposes. This means you can capitalise on emerging investment opportunities without having to sell your existing investments to raise funds.

Get financing

Find out what you need to do to open a securities financing facility.

Why apply for securities financing?

  • Immediate access to funds
    Your financing facility is a convenient, cost-effective option that gives you financial flexibility. It gives you access to cash, which you can use to purchase additional investments, without having to sell any of your existing investments to raise funds. Minimum facility limits start at S$10,000 (or equivalent foreign currency).
  • Only pay interest on what you use
    You'll only incur interest on the amount used, and interest is calculated on a daily basis.
  • Available in major currencies
    The facility is available in SGD, USD, EUR and AUD to suit your personal investment needs.
  • Flexible finance
    There's no service fee or minimum monthly repayment required. Plus you can increase or decrease your limits easily by filling in a Customer Instruction Form.

How it works

Securities financing is a type of secured borrowing facility in which you use your existing investment assets as security. You can borrow up to a maximum percentage of the value of the assets held in your portfolio, so long as they are acceptable to us to be used as security. This percentage varies depending on the asset as follows: 
 

Unit trusts:

  • Risk rating 1: borrow up to 70%
  • Risk rating 2 or 3: borrow up to 60%
  • Risk rating 4 or 5: borrow up to 50%


Notes/bonds:

  • Risk rating 1-3: borrow up to 60%
  • Risk rating 4 or 5: borrow up to 30% 


Shares:


Borrow up to 50% 

 

For a full list of acceptable shares, unit trusts, notes and bonds (excluding high yield bonds) that you can use as security, please check with your Relationship Manager.

What it costs

Interest

  • Premier: VLR + 0.95% p.a.
  • Jade: VLR + 0.75% p.a.

The variable lending rate (VLR) is set on a daily basis and is determined by a list of factors including costs of borrowing, internal business costs and market conditions. Speak to your Relationship Manager for the prevailing rates, which are subject to change.

Fees and charges

  • The minimum interest charge is S$10 per month (or equivalent currency of your facility). This is payable only if you use your facility.
  • If you go over your facility limit, you'll be charged interest on the excess amount at a rate of VLR + 2%.

Repayment term

There is no minimum monthly repayment required. You can repay any amount at any time, or on demand. 

Things to know

  • The securities in your securities financing investment account will be used as collateral for the loan. A decline in the value of the securities may result in your outstanding balance exceeding the facility limit. As a result, we may seek additional funds from you, charge additional eligible securities, or sell securities to maintain the applicable margin ratio. If we're forced to sell any securities in your account, it will be done immediately, without prior notice or consent from you. 
  • This facility is uncommitted and we may need to cancel, review or alter the terms of the facility at any time, without prior notice. If we need to close the facility, all money under the facility needs to be repaid in full, on demand.

Eligibility

To apply for securities financing, you must be:

  • an HSBC Premier or HSBC Jade customer
  • between 21 and 65 years old
  • a resident of Singapore, or another eligible country. Please check with us for up-to-date residency criteria.

How to apply

Apply by phone

Call us 24 hours a day on

1800 HSBC Now (4722 669)

Or contact your Relationship Manager directly.

Apply in branch

Visit your nearest branch to talk to us about securities financing.

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