HSBC

HSBC holds money or securities as an escrow agent through its Issuer Services business until the instructions required by the contract are received.

Where it is used

Solutions are applied in M&A, project finance, security for obligations and construction deposits. In an acquisition, for example, part of the price can be held as a deposit while warranty claims are open, and released to the seller or buyer according to the agreement.

Assets

The listed assets are cash and securities, with securities subject to the country. Eligible assets therefore differ between locations, and the same structure may not be available in every market where the bank operates.

Services

• Escrow agent
• Issuer services

Provider type

HSBC is a bank, so the escrowed funds are held within a regulated banking group, which some counterparties prefer over an independent escrow company.

Terms to confirm

Countries served, fees, minimum deal size, currencies, onboarding documents and the HSBC entity that would act as agent are not listed. They should be confirmed for the jurisdiction of the transaction.