Vietnam Proposes Steep Cuts to Clean Energy Payouts in Protracted $13 Billion Dispute

Vietnam’s state utility has proposed retroactively slashing payments to 173 renewable energy projects by as much as 43% and clawing back part of the incentives already paid, The Business Times reported.

The proposed cuts by Vietnam Electricity (EVN) cover projects with a combined capacity of about 12 gigawatts and an estimated value of roughly USD 13 billion, and apply only to electricity generated during periods when the projects were deemed to have fallen short of approval conditions.

The move is the clearest sign yet of how Hanoi may settle a long-running dispute over eligibility for Vietnam’s earlier feed-in tariff regime, which through EVN, guaranteed fixed and generous tariffs for up to 20 years for qualified solar and wind power plants.

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asian Sovereigns’ Tug of War

• 💼 Brief Take: Vietnam’s Risk Zone

China’s PBOC Raises Leverage Ratios for Foreign Lenders to Support Outbound Investment

Beijing has raised the limit on banks’ overseas lending – a move that analysts say will support Chinese firms in outbound investment expansions while helping to stabilise the yuan, South China Morning Post reported.

Regulators raised the overseas loan leverage ratio for foreign banks in China and their joint ventures with Chinese lenders from 0.5 to 1.5, according to a statement published by the central bank and the foreign exchange regulator.

In a separate statement, the regulators said that the new rules would better address the financing needs of firms expanding abroad, as overseas loan volumes have grown steadily and some banks have raised concerns about lending limits.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

Australia’s Housing Crisis Set to Worsen on Iran War Fallout

Higher construction costs caused by the war in the Middle East could worsen Australia’s ongoing housing crisis and threaten the country’s ability to meet ambitious housing targets, builders and economists have warned, The Business Times reported.

A surge in oil prices since the start of the US-Iran conflict has resulted in cost spikes of as much as 40% for some materials in the building sector, which is heavily dependent on diesel for fuel.

Indonesia Roundup

Indonesia’s Cabinet Secretary Sparks Debate with Remarks Targeting Analysts

Indonesia’s Cabinet secretary Teddy Indra Wijaya has sparked controversy with his remark about an “inflation of observers”, with critics saying it is the latest sign of the authorities’ shrinking tolerance for dissent in the democratic country, CNA reported, citing agencies.

Teddy claimed such commentators were shaping public opinion against President Prabowo Subianto’s administration.

“[It’s fine to] criticise us, but let’s not make statements that create anxiety or unsettle the public,” he said. “Everything is stable, everything is under control.”

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

• 📒 Quick Take: Indonesia’s Year of Living Dangerously

• 📒 Quick Take: Indonesia’s Fight Against the Tide

Ginting & Reksodiputro Advises Bank Mandiri on $750 Million Bond Offer

Ginting & Reksodiputro, in association with A&O Shearman, advised Bank Mandiri on its offering of USD 750 million senior unsecured notes, according to the Indonesian law firm’s LinkedIn post.

”The issuance is a benchmark deal for the region as one of the first US Dollar bonds issued by a Southeast Asian bank following recent Middle East tensions,” the statement said, adding that the offering was oversubscribed by more than 3.3 times.

• 📒 Quick Take: Asia’s Bond Tide

• 📒 Quick Take: Indonesian SOE Banks’ Call of Duty

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

China Imposes Lifetime Accountability for Officials’ Investment Decisions

China has introduced a lifetime accountability system for officials responsible for government investment decisions, aiming to curb local debt risks and improve capital efficiency as part of a sweeping overhaul of the country’s project approval process, Caixin reported.

The guidelines, released by the State Council, underscore Beijing’s efforts to tighten control over state spending and address industrial overcapacity amid weak domestic demand and persistent local government debt pressures.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

• 👣 Asia’s Restructuring Milestones: China’s Bankruptcy Law

Evergrande’s EV Bankruptcies Leave Over $2 Billion in Debt

The three primary manufacturing bases of Hong Kong-listed China Evergrande New Energy Vehicle Group have all entered bankruptcy proceedings, with nearly CNY 18 billion (USD 2.6 billion) in confirmed debt, Caixin reported.

• 📒 Quick Take: China’s Unequal Property Pain

Bondholders Seek Sweeteners as Shapoorji Unit Pushes Extension

Bondholders in a unit of India’s Shapoorji Pallonji Group are asking for compensation after the construction conglomerate sought a two-month extension to repay its debt, Bloomberg reported, citing people familiar with the matter.

Investors are bracing for tough negotiations. They plan to push for better terms in exchange for agreeing to the delay, such as higher yields, extra collateral, or a fee.

• 💼 Brief Take: Shapoorji Pallonji Group’s Tightrope Walk

• 💼 Brief Take: India’s Musical Chairs on Steroids

• 💼 Brief Take: India’s Battle-Hardened Billionaires

• 📒 Quick Take: Asia Private Credit’s Reality Check

Indonesia Roundup

Hajj Costs Jump 26.5% as Oil Prices Surge, Government to Cover Gap

Indonesia will absorb a sharp increase in Hajj costs for 2026, as surging global oil prices and heightened geopolitical risks in the Middle East drive up travel expenses, Jakarta Globe reported.

Hajj and Umrah Minister Mochamad Irfan Yusuf said total Hajj-related costs have climbed by 26.5% or IDR 1.77 trillion (USD 103 million). The spike is largely tied to higher aviation fuel prices and additional risk-related charges.

• 📚 Acrostics Anatomy: Indonesia’s Albatross

• 💼 Brief Take: Asian Airlines’ Survival of the Most Liquid

• 💼 Brief Take: Garuda Indonesia’s Saudi Venture

• 📒 Quick Take: Garuda Indonesia’s Quicksand

Startup Founder Faces Decade in Jail After $300 Million Meltdown

Indonesian prosecutors demanded a 10-year prison sentence for the founder of eFishery, who admitted to inflating revenues after his company racked up some USD 300 million of investor losses to become one of Southeast Asia’s biggest startup failures, Bloomberg reported.

• 📚 Acrostics Anatomy: eFishery’s Fishy Accounting

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

A garuda is an eagle-like creature that symbolizes power in ancient mythology, yet the Indonesian flag carrier that was named after the ‘king of birds’ has been an albatross weighing down successive administrations.

Garuda Indonesia has gone through three major debt restructurings since it was founded in 1949, four years after Indonesia’s independence from the Dutch. However, the airline is nowhere near a turnaround and continues being burdened by expensive leases.

On 24 April 2025, I reported that Indonesian officials were discussing a potential capital infusion for Garuda via sovereign fund Danantara. I also flagged that the carrier was struggling to meet its required aircraft maintenance expenses and had to ground some planes due to a shortage of components.

Two months later, Danantara announced a USD 405 million shareholder loan to meet Garuda’s maintenance, repair and overhaul needs. I wrote that the sovereign fund had to step in with the emergency loan as Garuda’s budget unit Citilink was on the brink of a default and this would have triggered a group-wide contagion.

Danantara’s Chief Operating Officer Dony Oskaria also said in July 2025 that Garuda would undergo a comprehensive restructuring that was set to include cash and non-cash corporate actions. Indonesian state-owned energy company Pertamina would convert the airline’s fuel debt into equity, according to Oskaria.

On 6 October 2025, Garuda disclosed that it would conduct a USD 1.8 billion private placement, consisting of a USD 1.44 billion cash injection from Danantara and a conversion of the fund’s USD 405 million shareholder loan into equity. The overall amount was quietly downsized a month later to USD 1.4 billion.

The use of proceeds also shifted from a fleet expansion towards paying the fuel debt owed by Citilink to Pertamina. As I noted, Indonesian state-owned enterprises (SOEs) typically have to perform their family duty and support each other, but they may also privately lobby their shareholders for a better end of the deal as they seek to preserve their own liquidity.

Evaporating Cash

On 21 November 2025, I wrote that “Garuda seems to be slicing and dicing its equity in return for the family support, but this may limit the room for the airline to obtain equity financing from third parties.”

“While returning to positive equity is the first step towards attracting potential investors, Garuda may bleed again if it continues being weighed down by costly leases without improving its cashflow.”

Danantara’s capital injection turned Garuda’s equity positive to USD 91.9 million in 2025, but this is a relatively thin buffer. Revenue fell 5.9% to USD 3.2 billion from a year earlier, while pre-tax losses ballooned to USD 354.3 million from USD 81.5 million partly due to maintenance costs and forex losses.

I also wrote on 26 March 2026 that the jump in oil prices, weaker rupiah and reduced earnings from grounded planes would accelerate the evaporation of Garuda’s cash. Compounding Garuda’s woes, the Indonesian airline was downgraded to a four-star rating by international air transport rating organization Skytrax.

I noted on 10 April 2026 that Garuda can’t simply get rid of its legacy leases because some of them are long-term agreements and premature terminations may trigger significant claims or penalties. Any attempt to renegotiate or restructure these leases may also be constrained by Garuda’s local in-court restructuring (PKPU) deal in 2022.

Opposite Goals

Danantara’s Managing Director for Stakeholder Management, Rohan Hafas, said in February 2026 that the sovereign fund did not rule out injecting more capital into Garuda to increase its fleet in future.

However, there are at least two factors that may complicate any further round of support:

1. Danantara already owns 91.11% of Garuda after its latest infusion and the publicly listed company has committed to fulfilling the minimum free float requirement. If new funding is structured as a shareholder loan, it will add to Garuda’s liabilities unless it’s eventually converted into equity.

2. Even if Danantara pours more capital into Garuda, it’ll be like throwing good money after bad if the airline remains uncompetitive.

Back in April 2025, I noted that like other Indonesian SOEs, Garuda faces the challenge of balancing its commercial duties and public service obligation of maintaining the affordability of domestic airfares.

“Rather than trying to reconcile these diametrically opposite goals, a restructuring friend said that Garuda might be better off focusing on one task. If Garuda’s mission is to increase connectivity across the sprawling archipelago, then the Indonesian government should subsidize the loss-making routes,” I wrote a year ago.

The fundamental question that has become even more pertinent now is whether Indonesia can afford to keep its flag carrier on perpetual life support.

Acrostics Asia Coverage

• 💼 Brief Take: Asian Airlines’ Survival of the Most Liquid

• 💼 Brief Take: Garuda Indonesia’s Saudi Venture

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 📸 Snapshot: Garuda Indonesia 2025 Results

• 📒 Quick Take: Indonesia’s Plane Pool

• 👟 Walk the Talk: Garuda Indonesia’s Recapitalization

• 👟 Walk the Talk: Garuda Indonesia

• 🔮 Indonesian SOEs 2026 Outlook: Garuda Indonesia

• 📚 Acrostics Anatomy: Garuda Indonesia’s Clean Up Operation

• 📚 Acrostics Anatomy: Indonesia’s Mission to Save Garuda

• 📚 Acrostics Anatomy: Garuda Indonesia’s Clipped Wings

Acrostics Asia is an independent Asia credit intelligence provider that delivers forward-looking insights on Asian sovereigns and state-linked entities.

Shenzhen Taps 12 Financial Institutions to Rescue Distressed Property Projects

Shenzhen has assembled 12 major financial institutions to form an advisory panel tasked with restructuring debt and injecting fresh capital into the city’s distressed real estate projects, Caixin reported.

The newly established panel pairs state lenders, asset managers and brokerages with local government departments. At its inaugural meeting on 8 April 2026, the group began reviewing an initial list of 82 priority projects.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

• 👣 Asia’s Restructuring Milestones: China’s Bankruptcy Law

Air India Asks Tata, Singapore Air for Funds After $2.4 Billion Loss

Air India racked up a wider-than-expected annual loss of more than INR 220 billion rupees (USD 2.4 billion), prompting the company to seek financial aid from its shareholders, Bloomberg reported, citing people familiar with the situation.

Air India’s controlling shareholder, Tata Group, as well as Singapore Airlines which owns 25.1% in the carrier, are in talks to inject some much-needed cash. The size of the infusion is still being discussed but may be less than what the carrier needs, meaning Air India would have to look for other financing options.

• 💼 Brief Take: Asian Airlines’ Survival of the Most Liquid

• 📒 Quick Take: Asian Flag Airlines’ Cash Plight

• 💼 Brief Take: Shapoorji Pallonji Group’s Tightrope Walk

Vingroup Says Vienna Stock Exchange Accepted $350 Million Bonds for Listing

Vietnamese conglomerate Vingroup submitted an application for the listing of up to USD 350 million of bonds on the Vienna Stock Exchange through its international legal counsel, Latham & Watkins, according to its statement.

Vingroup said it received confirmation dated 9 April 2026 from the Vienna Stock Exchange, accepting the bonds for listing and trading.

• 📒 Quick Take: Vietnam’s Green Shoots

• 💼 Brief Take: Vietnam’s Risk Zone

Indonesia Roundup

Indonesia’s Rating Most at Risk in Southeast Asia Amid War, S&P Says

Sovereign ratings in Southeast Asia are expected to come under strain, with Indonesia’s particularly at risk in case of a prolonged Middle East conflict, Bloomberg reported, citing S&P Global Ratings.

“The credit quality of sovereigns with thinner rating cushions could slip in the scenario of a protracted energy market disruption. In Southeast Asia, we believe the sovereign ratings on Indonesia would be more vulnerable if the conflict drags on,” S&P said in a report.

Higher energy prices will increase Indonesia’s subsidy costs and weigh on its budget, while costlier oil imports will widen the current account deficit, S&P said. Faster inflation could also lead to higher market interest rates, which would push up the government’s borrowing costs.

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

• 📒 Quick Take: Indonesia’s Year of Living Dangerously

• 📒 Quick Take: Indonesia’s Fight Against the Tide

Danantara to Step Up Middle East, Energy Security Investments

Indonesian sovereign wealth fund Danantara plans to double down on investments in the Middle East in spite of the war in Iran, and also plans to allocate more money this year to energy security, Bloomberg reported, citing Chief Investment Officer Pandu Sjahrir.

The year-old fund intends to deploy some $14 billion in 2026 across various asset classes, according to Pandu.

“Given what is going on today, there’s probably going to be a bias towards energy security,” he said, adding that more energy is also needed to support the growth in artificial intelligence and digital infrastructure. There will also “be a bias towards critical minerals.”

• 👟 Walk the Talk: Danantara’s War Chest

• 📚 Acrostics Anatomy: Danantara’s Genesis

• 📚 Acrostics Anatomy: Danantara’s Bridge to Bonds

• 📚 Acrostics Anatomy: Indonesian SOE State of Play

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

BlackRock’s Asia Private Credit Fund Sees China Borrower Default

A BlackRock private credit fund in Asia has suffered the first default by a borrower in its portfolio after a Chinese company failed to repay a loan, Bloomberg reported, citing people familiar with the matter.

The delinquency occurred on 1 April, after Metcold Holdings, a Shanghai-based cold-chain infrastructure service provider, failed to repay the loan’s outstanding principal of $27.5 million. The unpaid interest is around $12 million.

While delinquencies in private credit aren’t unusual, concerns are growing that they may start rising due to risks such as AI’s disruptive effects on businesses and elevated borrowing costs.

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia Private Credit’s Reality Check

• 📒 Quick Take: Asia’s Mushrooming Private Credit

China Court Orders Bankruptcy Liquidation for Zhongzhi Group and 316 Affiliates

A Beijing court has ordered the liquidation of Zhongzhi Enterprise Group and more than 300 related ​entities, in a major step towards resolving one ‌of China’s biggest shadow banking collapses and managing systemic financial risks, Reuters reported.

Creditors have until 10 June to file their claims with the ​administrator, Beijing Dacheng Law Offices, according to a ​court statement.

The court ruled ⁠that Zhongzhi and 316 affiliated firms would undergo a ​consolidated bankruptcy process, which means the assets and liabilities ​of the companies will be treated as a single pool in the proceedings.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

• 👣 Asia’s Restructuring Milestones: China’s Bankruptcy Law

Global Banks Play Hedge Card After RBI Blow on Rupee Bets

Some of the large foreign banks are trying to soften the blow from the Reserve Bank of India (RBI)’s sudden clampdown on speculative bets against the rupee, The Economic Times reported.

They are understood to have passed off some of the arbitrage deals, which were hit by the recent regulatory directives, as transactions done to hedge the capital received from overseas parents.

Arbitrage deals are cut to profit from price differences in the local foreign exchange forward market and the offshore market for non-deliverable forwards (NDFs).

• 💼 Brief Take: Shapoorji Pallonji Group’s Tightrope Walk

• 💼 Brief Take: India’s Musical Chairs on Steroids

• 💼 Brief Take: India’s Battle-Hardened Billionaires

• 👣 Asia’s Restructuring Milestones: India’s Reversal

Indonesia Roundup

Indonesian Employers Group Says 1.5 Million Left Jobless Every Year

Indonesia is facing a growing labor market imbalance, with around 1.5 million people left unabsorbed each year, Jakarta Globe reported, citing the Indonesian Employers Association (Apindo).

According to Bob Azam, head of labor affairs at Apindo, about 3.5 million people enter the workforce annually, while the economy is only able to absorb roughly 2 million.

“Our labor conditions are showing warning signs,” he said during a hearing with a parliamentary commission.

Despite Indonesia’s steady economic growth of around 5%, job creation remains limited. The imbalance risks pushing more workers into the informal sector, where job security and income stability are typically lower.

• 👟 Walk the Talk: Indonesia’s Economic Fissures

• 📚 Acrostics Anatomy: Indonesia’s Economic Cracks

• 📚 Acrostics Anatomy: Indonesia’s Policy Disconnect

Danantara Says Exploring Garuda Indonesia JV with Middle Eastern Airlines

Indonesian sovereign fund Danantara is exploring a potential joint venture between flag carrier Garuda Indonesia and Middle Eastern airlines, including Saudia, Emirates and Etihad, for Muslim pilgrimages, Bisnis reported.

Internally, Garuda is pursuing operational efficiency amid a jump in oil prices, but it will take time, Danantara CEO Rosan Roeslani reportedly said.

• 💼 Brief Take: Asian Airlines’ Survival of the Most Liquid

• 💼 Brief Take: Garuda Indonesia’s Saudi Venture

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 👟 Walk the Talk: Garuda Indonesia’s Recapitalization

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Shapoorji Pallonji Group (SP Group) is seeking a two-month extension for INR 143 billion (USD 1.5 billion) of bonds, as foreign exchange volatility and tighter hedging conditions disrupt its refinancing plans, The Economic Times reported on 13 April 2026. The original payment deadline is 30 April.

Eveline’s Take

The Indian conglomerate was preparing to refinance the bonds by raising around INR 250 billion (USD 2.7 billion) via a mix of offshore and domestic funding, according to The Economic Times. However, hedging costs have spiked after the Reserve Bank of India moved to tighten access to the offshore non-deliverable forward (NDF) market.

I wrote on 20 January that Asia’s high-yield space is essentially a game of musical chairs where lenders pass a credit to each other, but SP Group has taken it to a new level as the music quickens with each round. The cost of its private credit facility reportedly stepped up to 21.75% after its unit, Goswami Infratech, did not complete a refinancing by end-December.

I also noted that the refinancing was “not a surefire success, as SP Group’s ability to monetize its Tata Sons stake – and the timing – may affect its credit standing.” SP Group, which owns around 18.4% of Tata Sons, has been pushing for a public listing of Tata Group’s holding company.

“A timely listing of Tata Sons is not merely a regulatory compliance but a necessary evolution,” SP Group Chairman Shapoor Mistry was quoted as saying on 10 April. “To date, no clear, evidence-based case has been presented to explain how a public listing would materially damage the interests of the trusts or reduce their ability to serve beneficiaries.”

Noel Tata, the head of Tata Trusts, had sought assurances at a Tata Sons board meeting in February that the holding company could avoid a public listing, Bloomberg reported. Tata Trusts is a collective of 13 charities, which together control two-thirds of Tata Sons.

The chances of a successful listing for Tata Sons are like a jackpot that may require the regulatory and commercial stars to align with the dynamics between two of India’s most prominent clans.

Some lenders to SP Group are making a high-stakes bet that the initial public offering will happen and unlock value for the conglomerate controlled by the Mistry family. In short, SP Group is effectively borrowing time that’s getting more expensive, while waiting for a liquidity event tied to its Tata Sons stake.

Acrostics Asia Coverage

• 💼 Brief Take: India’s Musical Chairs on Steroids

• 💼 Brief Take: India’s Battle-Hardened Billionaires

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia Private Credit’s Reality Check

• 📒 Quick Take: Asia’s Bond Tide

• 📒 Quick Take: Asia’s Mushrooming Private Credit

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

SP Group Looks to Defer INR 143 Billion Bond Payment

Shapoorji Pallonji Group is seeking a two-month extension on INR 143 billion (USD 1.5 billion) of bonds maturing this month, as foreign exchange volatility and tighter hedging conditions disrupt its refinancing plans, The Economic Times reported. The original payment deadline is 30 April.

• 💼 Brief Take: India’s Musical Chairs on Steroids

• 💼 Brief Take: India’s Battle-Hardened Billionaires

• 📒 Quick Take: Asia Private Credit’s Reality Check

CapitaLand Investment Raises $320 Million for Second Regional Credit Fund

CapitaLand Investment (CLI) has achieved the final close of CapitaLand Asia Pacific Credit Program II, raising USD 320 million for its second regional credit fund, according to its LinkedIn post. CLI focuses senior secured, asset-backed real estate credit in the region.

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Mushrooming Private Credit

ADB Sees Vietnam’s Economy Outpacing Indonesia and Malaysia

The Asian Development Bank (ADB) expects Vietnam to be the fastest-growing economy in ASEAN this year, IDN Financials reported.

In its Asian Development Outlook April 2026 report, ADB forecasts Vietnam’s economy to grow by 7.2% in 2026.

Indonesia is projected to rank second, with economic growth of 5.2%. Meanwhile, Malaysia is expected to rank third, with growth projected at 4.6%.

• 📒 Quick Take: Vietnam’s Green Shoots

• 💼 Brief Take: Vietnam’s Risk Zone

Indonesia Roundup

Indonesia Insists on Growth Target as World Bank Cuts Forecast

The Indonesian government has doubled down on its growth target for gross domestic product, insisting that it will achieve or even exceed the figure set in the state budget despite the World Bank’s move to downgrade its projection, The Jakarta Post reported.

Coordinating Minister for Economic Affairs Airlangga Hartarto told reporters that GDP growth this year would be “greater than or equal to” the 5.4% targeted in the budget.

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

• 📒 Quick Take: Indonesia’s Year of Living Dangerously

• 📒 Quick Take: Indonesia’s Fight Against the Tide

Danantara Defends China Dominance in Waste-to-Energy Rollout

Sovereign wealth fund Danantara has defended the current Chinese dominance in Indonesia’s waste-to-energy rollout, Jakarta Globe reported.

When asked about China’s landslide win in the first tender and whether it will make sure the megaproject stays inclusive to other countries, Danantara Managing Director Rohan Hafas replied: "China, why not?”

• 👟 Walk the Talk: Danantara’s War Chest

• 📚 Acrostics Anatomy: Danantara’s Genesis

• 📚 Acrostics Anatomy: Danantara’s Bridge to Bonds

• 📚 Acrostics Anatomy: Indonesian SOE State of Play

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Asian credit headlines tend to be dominated by defaults, disputes and debt restructurings. Bright Spot is an Acrostics Asia feature that tracks deal flows and moves in the industry – a way to spot opportunities, not just bad news.

☀️ Bright Spot #18 (7 April 2026)

Two themes have recently stood out in Asian credit.

Investors have shown growing interest in sovereign bonds, including those from frontier nations such as Mongolia, Kazakhstan and Uzbekistan. I wrote in October 2025 that the bond tide was “partly a function of demand and supply, as China’s property meltdown blew a hole in Asia’s high-yield universe and investors had to find a way to put their money to work.”

The second theme was the data centre boom. I’ve compiled some of the deals related to AI, data centres or digital infrastructure in the region over the past few months.

In the latest On the Move, Australia’s private credit market has grown to an estimated AUD 234.5 billion in 2025, according to a report by EY-Parthenon. Meanwhile, Kai Yun Tan has joined Ashurst’s restructuring, insolvency and special situations practice as a partner in Singapore.

💼 Brief Take: Garuda Indonesia’s Saudi Venture (8 April 2026)

President Prabowo Subianto ordered Garuda Indonesia to explore a joint venture with Saudi Arabia’s flag carrier to increase the flight efficiency for Muslim pilgrimages. I wrote that while the president’s suggestion may make sense on paper, any traction depends on whether the Middle East nation would seriously consider it.

💼 Brief Take: Asian Airlines’ Survival of the Most Liquid (10 April 2026)

Airlines are in a survival-of-the-fittest mode, defined as who can stretch their liquidity the longest. Garuda has been hit hard as it must pay for rent and maintenance without being able to earn any money from its grounded planes. I laid out why the Indonesian carrier’s leases are such an albatross around its neck.

📒 Quick Take: Lining Up the Garuducks (29 April 2025)

It remains to be seen whether Garuda would pursue a fourth restructuring given the higher barriers. I’ve already outlined the potential route and considerations a year ago, but the problem is the carrier has an even weaker negotiating position now. Still, whoever can crack the Garuda puzzle may have their place in the hall of fame.

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Kazakhstan SWF Closes Order Book for Debut Panda Bond

Kazakhstan sovereign wealth fund Samruk-Kazyna has closed the order book for its debut panda bond at a record-low yield of 2.18%, according to its LinkedIn post.

The panda bond issuance totalled CNY 3 billion (USD 439.1 million), with a three-year tenor in China’s domestic debt market. “The placement is being carried out under a registered program of up to CNY 10 billion, ensuring the Fund’s continued presence in the Chinese capital market,” Samruk-Kazyna said.

• ☀️ Bright Spot #18: Asia’s Frontier Bonds

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Bond Tide

Uzbekistan Wealth Fund Confirms Plan for London IPO

Uzbekistan’s national wealth fund has confirmed plans to plough ahead with a London initial public offering, City AM reported.

In an update to the stock exchange, the National Investment Fund of the Republic of Uzbekistan (UzNIF) announced it expected to float on both the London and Tashkent stock exchanges.

• 👟 Walk the Talk: Asian Sovereign Signals

• 📒 Quick Take: Mongolia’s Financing Window

Vingroup Signs Pact with India’s Maharashtra to Explore $6.5 Billion Investments

Vietnam’s largest conglomerate Vingroup signed a memorandum of understanding with Maharashtra’s state government to explore USD 6.5 billion in investments, Reuters reported via CNA.

The move will deepen Vingroup’s footprint in India, where its electric vehicle unit VinFast operates a manufacturing facility in the state of Tamil Nadu.

Indonesia Roundup

Indonesia’s Finance Minister Calls World Bank GDP Growth Downgrade a ‘Serious Mistake’

Indonesia’s Finance Minister Purbaya Yudhi Sadewa has pushed back against the World Bank’s decision to lower the country’s 2026 economic growth forecast from 4.8% to 4.7%, calling it a “serious mistake” that could undermine market and investor confidence in the country, local media reported via CNA.

Purbaya attributed the lower forecast partly to assumptions of high global oil prices, saying that such conditions will not last long and that projections will improve as energy prices normalise.

“The World Bank has created a negative sentiment about us. I’ll wait for their apology when oil prices return to normal levels and they revise their economic projections again,” Purbaya said, as quoted by news outlet Kompas.

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

• 📒 Quick Take: Indonesia’s Year of Living Dangerously

Indonesia’s Prabowo Calls for Criminal Charges Against Firms Resisting Forest Crackdown

Indonesian President Prabowo Subianto ordered prosecutors to file criminal charges against companies that refuse to cooperate with a task force he launched to crack down on illegal activities in the country’s forests, Reuters reported via The Straits Times.

The task force, made up of military personnel, prosecutors and environmental regulators, has since early 2025 been seizing areas controlled by companies and individuals, ordering them to pay fines for what they describe as illegal business operations in designated forest areas.

• 📒 Quick Take: Indonesia’s “New Order” Resurgence

• 📒 Quick Take: Indonesia’s Strongman Part One

• 📒 Quick Take: Indonesia’s Strongman Part Two

• 📒 Quick Take: Indonesia’s Strongman Part Three

Indonesia’s Richest Man Sells Stakes as Ownership Rules Tighten

Indonesia’s richest man has begun selling small stakes in his listed companies as tighter ownership rules push firms to increase shares available to public investors, Bloomberg reported.

Billionaire Prajogo Pangestu sold a 0.56% stake in Petrindo Jaya Kreasi to boost the company’s free float, according to a stock exchange filing. Pangestu-affiliated Green Era Energy this week also sold a fraction of its stake in Barito Renewables Energy.

• 👟 Walk the Talk: Indonesian Outflows

• 📒 Quick Take: Indonesia’s Fight Against the Tide

• 📒 Quick Take: Indonesia’s Spinning Plates

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Asian airlines are shifting their focus from capacity growth to liquidity preservation as the oil shock weighs heavily on industry margins, The Business Times reported on 8 April 2026, citing Thai Airways CEO Chai Eamsiri. “Cash is king,” he said.

Eveline’s Take

Airlines around the world are in a survival-of-the-fittest mode, defined as who can stretch their liquidity the longest. “Most of the airline CEOs are not able to sleep,” Nasaruddin Bakar, President and Group CEO of Malaysia Aviation Group, reportedly said.

For state-owned airlines, their survival is also linked to how deep their sovereign backers’ pockets are. China is considering financial relief and other measures for its struggling state-run airlines, in what could be the industry’s biggest lifeline since the Covid pandemic, Bloomberg reported on 9 April, citing people familiar with the matter.

In Indonesia, President Prabowo Subianto ordered Garuda Indonesia to explore a joint venture with Saudi Arabia’s flag carrier to increase the flight efficiency for Muslim pilgrimages. I wrote on 8 April that while the president’s suggestion may make sense on paper, any traction depends on whether the Middle East nation would seriously consider it.

I also noted that Garuda will likely try to avoid a major increase in pilgrimage fares given the political sensitivity in Indonesia, which has the world’s largest Muslim population. The next day, Bernama reported that Indonesia aims to reduce Hajj costs by about IDR 2 million (USD 117) per pilgrim, without specifying how this will be achieved.

Garuda’s cash and equivalents more than quadrupled to USD 943.4 million as of end-2025 from a year earlier, thanks to the capital injection from sovereign fund Danantara, according to its latest results. However, I wrote on 26 March that the erosion of the flag carrier’s buffer may accelerate because of the oil spike and its perpetual lease burden.

Nearly 40% of Garuda’s fleet was reportedly grounded, yet the airline has to continue paying for rent and maintenance without being able to earn any money from those planes. Furthermore, the costs for repairs and maintenance have jumped because of the weakening rupiah, which sank to a record low against the dollar earlier this week.

Why are the leases such an albatross around Garuda’s neck?

1. Some of the leases are long-term agreements struck by Garuda’s past managements and breaking them may trigger significant claims or penalties.

2. The leasing industry is a tight-knit circle where an airline that defaults on its lease may get a bad reputation and struggle to find new lessors in future.

3. An accounting rule that kicked in from 2020 required Garuda to bring aircraft leases onto its stretched balance sheet.

I also wrote in April last year that the difficulty level for a new round of debt restructuring has increased as Garuda already went through three major restructurings and was running out of carrots to offer creditors. Garuda’s latest deal was a local in-court restructuring (PKPU) in 2022 and the airline risks being filed into bankruptcy if it breaches this agreement.

It remains to be seen whether Garuda would pursue a fourth restructuring given the challenges that I highlighted. I had outlined on 29 April 2025 the potential route and considerations (see below), but the problem is the carrier has an even weaker negotiating position now.

Still, whoever can crack the Garuda puzzle may have their place in the hall of fame.

Acrostics Asia

Independent Asia Credit Intelligence

By Eveline Danubrata

📒 Quick Take: Lining Up the Garuducks

29 April 2025

• The potential gameplan for Indonesian flag airline Garuda to get the buy-in from stakeholders and avoid bankruptcy.

• It’s going to be a tough play, but it could be one for the history books.

Any restructuring or turnaround involves getting the buy-in from stakeholders and finding a solution that most of them can live with, but Garuda Indonesia’s case will likely raise the difficulty level to new heights.

To recap my previous takes, these are the parameters:

• Garuda went through three restructurings, with the latest being a local in-court restructuring (PKPU) in 2022. A creditor can file Garuda into bankruptcy if the Indonesian flag airline defaults on its PKPU agreement.

• Aircraft maintenance and repairs have been a bugbear for Garuda, which was saddled with expensive leases as a legacy of its past managements. The carrier must also service its restructured debt including bonds and bank loans.

• Liquidating Garuda and starting afresh might be the easiest path, but this is unlikely to happen under President Prabowo Subianto, who has been championing his “Golden Indonesia” vision to his voters.

Now that we’ve established the rules of the game, let’s look at the potential gameplan.

The biggest problem for Garuda is that it already took the PKPU route, which means that it would be left exposed in Indonesia if it misses any payment or breaches any term under its 2022 agreement.

The bankruptcy of Indonesian shipping company Arpeni Pratama Ocean Line in the hands of Bank CIMB Niaga in 2019 underscores that a single dissenting creditor can nuke a post-PKPU deal that relies on an out-of-court amendment provision.

I wrote last week that Garuda is running short of carrots to offer its creditors given that it had already deployed an initial public offering (IPO) and a capital injection from the Indonesian government to get its previous restructurings across the line.

The best option now is therefore a partnership with a strategic investor who can bring in fresh capital and the expertise to expand into new markets, while giving Garuda the latitude to work on a fourth restructuring.

The joint venture-restructuring combo will probably be an easier pitch in Indonesia, which has the world’s largest Muslim population, if the partner is a Middle Eastern airline such as Emirates, Qatar Airways or Etihad Airways. These airlines are also likely to be existing clients of Garuda’s lessors, which may help in negotiations.

“With the rejuvenated entity, further negotiations can be entered into with its creditors and lessors to restructure each of its outstanding debts and liabilities,” said a lawyer friend with cross-border restructuring experience. In short, Garuda may have to pursue bilateral or one-on-one restructurings to avoid Arpeni’s fate.

Garuda will have to shore up its defense in case a creditor tries to push it into bankruptcy in Indonesia. A Chapter 11 filing in the US can provide a wide-reaching shield for Garuda, but it’s typically very expensive.

A more feasible option might be a Singapore proceeding, considering that the Singapore International Commercial Court (SICC) already recognized Garuda’s PKPU deal last year and the city-state has been trying to promote itself as a regional restructuring hub.

Garuda can potentially apply for a Singapore moratorium by showing that it has a “proposed plan in place” with the support of major creditors, but “the Court would keep a tight leash,” according to a Singapore-based lawyer friend. It’s also possible to get a Singapore moratorium recognized in Indonesia, as Indonesian textile company Pan Brothers’ court victory over one of its lenders, Bank Maybank Indonesia, has shown.

However, there’s a caveat. While most offshore lessors, banks and bondholders would comply with a Singapore court order because of their international presence, the local creditors are a wild card. Garuda’s Indonesian lawyers will therefore have to be the goalkeeper and fend off any bankruptcy petition on the airline’s home ground.

It’s going to be a tough play, but it could be one for the history books.

Acrostics Asia Coverage

• 🎒 Acrostics Asia Library: Asian Airlines

• 💼 Brief Take: Garuda Indonesia’s Saudi Venture

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 📸 Snapshot: Garuda Indonesia 2025 Results

• 📒 Quick Take: Indonesia’s Plane Pool

• 📒 Quick Take: Garuda Indonesia’s Accounting Bugbear

• 👟 Walk the Talk: Garuda Indonesia’s Recapitalization

• 👟 Walk the Talk: Garuda Indonesia

• 📚 Acrostics Anatomy: Garuda Indonesia’s Clipped Wings

• 📚 Acrostics Anatomy: Indonesia’s Mission to Save Garuda

• 📚 Acrostics Anatomy: Garuda Indonesia’s Clean Up Operation

• 🔮 Indonesian SOEs 2026 Outlook: Garuda Indonesia

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

IMF Reaches Staff-Level Agreement with Sri Lanka on $700 Million Funding

IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the combined fifth and sixth reviews of Sri Lanka’s reform program, according to IMF’s statement. Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about USD 700 million in financing.

The economic reforms implemented by the Sri Lankan authorities have continued to support the recovery, with reserves accumulating and real GDP growth and revenue mobilization outperforming expectations, according to the IMF.

“However, Sri Lanka is significantly exposed to the Middle East conflict and needs to build back better following Cyclone Ditwah.”

• ☀️ Bright Spot #16: Sri Lanka’s Recovery

• 👟 Walk the Talk: SriLankan Airlines

• 📚 Acrostics Anatomy: SriLankan Airlines’ Bond Truce

Asian Airlines Hoard Liquidity to Survive Worst Oil Shock Since 1980s

Asian airlines are shifting their focus from capacity growth to liquidity preservation as an infrastructure-led oil shock weighs heavily on industry margins, The Business Times reported, citing Thai Airways chief executive Chai Eamsiri.

Carriers are now in survival mode after the destruction of Middle East oil infrastructure and the effective closure of the Strait of Hormuz on 2 March. Aviation leaders noted that it will take months for the global jet fuel supply to stabilise.

• 🎒 Acrostics Asia Library: Asian Airlines

• 📒 Quick Take: Garuda Indonesia’s Quicksand

China Considers Financial Aid for Airlines Hit by Oil Shock

China is considering financial relief and other measures for its struggling state-run airlines as the Iran war sends fuel costs soaring, in what could be the industry’s biggest lifeline since the Covid pandemic, Bloomberg reported, citing people familiar with the matter.

Government subsidies, preferential tax treatment and state-backed low-interest loans are options being explored by authorities. Mergers are also being considered.

Indonesia Roundup

Indonesia Aims to Cut Hajj Costs Despite Fuel Spike

Indonesia aims to reduce Hajj costs by about IDR 2 million (USD 117) per pilgrim despite the increase in fuel prices, Bernama reported on 9 April 2026. This reflects the government’s commitment to protect the lower-income community, President Prabowo Subianto was quoted as saying.

Acrostics Asia wrote on 8 April 2026 that the president’s suggestion for Garuda Indonesia to explore a joint venture with Saudi Arabia’s flag carrier may make sense on paper, but any traction depends on whether the Middle East nation would seriously consider the proposed joint venture.

Acrostics Asia also noted yesterday that Garuda will likely try to avoid a major increase in pilgrimage fares given the political sensitivity in Indonesia.

• 💼 Brief Take: Garuda Indonesia’s Saudi Venture

Danantara Orders Construction SOEs to Complete Restructurings Before Merger

Indonesian sovereign fund Danantara has ordered the state-owned builders to complete their restructurings before a planned merger by the end of this year, Bisnis reported.

One of the construction SOEs, Wijaya Karya, aims to restructure its bank loans and bonds by June 2026, so the Indonesia Stock Exchange will allow its suspended shares to resume trading in the second half of this year.

• 👟 Walk the Talk: Whoosh Whammy

• 📚 Acrostics Anatomy: Indonesia’s Infrastructure Timebomb

• 🔮 Indonesian SOEs 2026 Outlook: Wijaya Karya

Danantara to Consolidate SOEs in Sugar Sector

Danantara is consolidating the state-owned enterprises in the sugar sector, CNN Indonesia reported, citing the sovereign fund’s Chief Operating Officer Dony Oskaria.

The sugar factories owned by ID Food should be transferred to Sinergi Gula Nusantara or Sugar Co, according to the report.

• 👟 Walk the Talk: Danantara’s War Chest

• 📚 Acrostics Anatomy: Danantara’s Genesis

• 📚 Acrostics Anatomy: Danantara’s Bridge to Bonds

• 📚 Acrostics Anatomy: Indonesian SOE State of Play

• 🔮 Indonesian SOEs 2026 Outlook

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

FTSE Russell Confirms Vietnam’s Emerging Market Status

FTSE Russell confirmed it will upgrade Vietnam to emerging market status from frontier status in September based on ​an interim review, the final seal of approval for the long-awaited move, Reuters reported.

Vietnam ‌will be added to FTSE Russell’s global equity indices beginning on 21 September in phases that will continue into 2027.

• 📒 Quick Take: Vietnam’s Green Shoots

• ☀️ Bright Spot #14: Vietnam’s Bankruptcy Overhaul

• ☀️ Bright Spot #12: Vietnam’s Rising Financial Hub

China Corruption Probe Highlights Local Debt Strains

An investigation into a senior transport official in China’s Guizhou province has delayed subsidy payments to infrastructure projects, disrupting loan servicing and highlighting vulnerabilities in local government-linked debt, Caixin reported.

Zhang Yin, a former head of Guizhou’s transportation department, is under investigation for suspected corruption, the province’s top anti-graft agency said.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

• 👣 Asia’s Restructuring Milestones: China’s Bankruptcy Law

Asian Coal Bonds Beat Peers as Iran War Triggers Energy Rethink

An unprecedented global energy crisis is driving Asia back to coal, in a pivot that’s generating a surprise boon for miners of the dirtiest fossil fuel and their bondholders, Bloomberg reported.

Notes of coal miners and related entities in the Asia Pacific, the destination of roughly 80% of the crude oil that transits the Strait of Hormuz, have returned 0.3% since the war started, according to prices compiled by Bloomberg. That compares with a 0.4% loss on debt of peers outside the region and a 2.4% slump in a broader gauge of global corporate bonds.

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Bond Tide

Indonesia Roundup

FTSE Keeps Indonesia’s Market Status Amid Ongoing Reforms

FTSE Russell will “closely monitor” Indonesia’s capital market reforms after the postponement of a March index review of the nation’s equities, Bloomberg reported.

The index compiler said it is not considering Indonesia for inclusion on the watch list, and the country’s Secondary Emerging market status remains unchanged.

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

• 📒 Quick Take: Indonesia’s Year of Living Dangerously

Indonesia Finalizes Restructuring Plan for China Train Debt

Indonesia said that it had finalized its debt restructuring plan for the China-backed Jakarta-Bandung bullet train or Whoosh, Jakarta Globe reported.

The fund’s chief operating officer, Dony Oskaria, told reporters that the government would make a public announcement within two weeks on what they had in mind to tackle the problem.

• 👟 Walk the Talk: Whoosh Whammy

• 📚 Acrostics Anatomy: Indonesia’s Infrastructure Timebomb

• 🔮 Indonesian SOEs 2026 Outlook: Wijaya Karya

Indonesia’s FX Reserves Hit Two-Year Low on Rupiah Defense

Indonesia’s foreign exchange reserves fell for a third straight month in March to the lowest level in nearly two years as the central bank stepped up market intervention to stabilize the falling rupiah, Bloomberg reported.

Foreign reserves declined $3.7 billion to $148.2 billion, the lowest since July 2024, due to Bank Indonesia’s steps to stabilize the currency and the government’s external debt repayments, the central bank said in a statement. The stockpile shrank by $8.3 billion in the first three months of this year.

• 👟 Walk the Talk: Indonesian Outflows

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Indonesian President Prabowo Subianto has ordered Garuda Indonesia to explore a joint venture with Saudi Arabia’s flag carrier Saudia to increase the flight efficiency for Muslim pilgrimages, CNN Indonesia reported on 8 April 2026.

Eveline’s Take

The president reportedly said that Indonesia and Saudi Arabia should create a 50-50 joint venture to fill the flights between both nations, potentially cutting airfares and travel duration.

His suggestion may make sense on paper – and I did write last year that a joint venture with a Middle Eastern airline could be an easier pitch in Indonesia, which has the world’s largest Muslim population.

However, any traction depends on whether Saudi Arabia would seriously consider the proposed joint venture. The reality is Garuda needs the partnership more than Saudia, which is financially and operationally stronger than the Indonesian airline.

I wrote on 26 March 2026 that the capital injection from sovereign fund Danantara may dry up faster than expected because of the triple whammy on Garuda: 1) a jump in oil prices, 2) higher repair and maintenance costs as a result of the weaker rupiah, and 3) reduced earnings because of its grounded planes.

Garuda said on 8 April 2026 that it will raise airfares because of the hike in fuel surcharges, Tempo reported, without specifying which routes will be affected. The flag carrier will likely try to avoid a major increase in pilgrimage fares given the political sensitivity in Indonesia.

Garuda also continues being weighed down by costly leases, some of which are long-term agreements struck by past managements.

I flagged a year ago that a new round of debt restructuring would be challenging for Garuda as it had gone through three major restructurings and was running out of carrots to offer creditors. Garuda’s latest deal was a local in-court restructuring (PKPU) in 2022 and the airline risks being filed into bankruptcy if it breaches this agreement.

Airlines around the world are facing a similar struggle because of the oil spike, but Garuda has even less room to manoeuvre compared to its peers.

Acrostics Asia Coverage

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 👟 Walk the Talk: Garuda Indonesia’s Recapitalization

• 📸 Snapshot: Garuda Indonesia 2025 Results

• 📚 Acrostics Anatomy: Garuda Indonesia’s Clipped Wings

• 📚 Acrostics Anatomy: Indonesia’s Mission to Save Garuda

• 📚 Acrostics Anatomy: Garuda Indonesia’s Clean Up Operation

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Underwater Mortgages Force China’s Banks to Get More Creative

Sinking real estate values in China are pushing millions of mortgages underwater, increasing the risk of losses for lenders and property owners, Bloomberg reported. Behind the scenes, Chinese bankers and officials are getting creative to contain the fallout.

Several state-owned banks have approached cash-strapped borrowers and offered them payment holidays on their mortgages for as long as two years. Some lenders are working with individual customers to find buyers for their homes, instead of calling defaults and foreclosing on the properties.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

• 👣 Asia’s Restructuring Milestones: China’s Bankruptcy Law

Top Indian Court Refuses to Interfere with Order Allowing Adani to Acquire JAL

In a setback to Vedanta Group, India’s Supreme Court declined to stay the implementation of Adani Enterprises’ resolution plan for debt-ridden Jaiprakash Associates Ltd (JAL), NDTV reported.

A bench led by Chief Justice Surya Kant noted that the insolvency proceedings are already listed for a final hearing before the National Company Law Appellate Tribunal (NCLAT) on 10 April 2026, and therefore found no reason to intervene at this stage.

• 💼 Brief Take: India’s Battle-Hardened Billionaires

• 👣 Asia’s Restructuring Milestones: India’s Reversal

Vinpearl Aims to Raise VND 8 Trillion via Preferred Share Offering

Vietnam’s Vinpearl has proposed a private placement of up to 100 million preferred shares in 2026, Vilasia wrote, citing a local report. These shares are convertible into common shares and carry a 6% cumulative annual dividend.

The offering price is set at VND 80,000 VND per share, with a target to raise a maximum of VND 8 trillion (USD 303.8 million at today’s exchange rate), according to the report.

• 📒 Quick Take: Vietnam’s Green Shoots

• 💼 Brief Take: Vietnam’s Risk Zone

Malaysia’s Sunway Fails in Bid to Take Over IJM

Sunway’s bid to take over IJM Corp has failed as it did not get enough support from IJM’s shareholders, The Edge reported.

On 6 April, the closing date of the offer, Sunway had received acceptances amounting to only 33.43% – below the 50% threshold.

Indonesia Roundup

Indonesia’s Central Bank Intervenes in FX Market After Rupiah Hits Record Low

Bank Indonesia has intervened to maintain the rupiah's stability and avoid excessive volatility after the currency hit a record low against the dollar, Reuters reported, citing Senior Deputy Governor Destry Damayanti.

The rupiah weakened to 17,090 per dollar on Tuesday morning, according to LSEG data. The currency has fallen by more than 2% against the dollar in 2026, which is in line with some of its regional peers.

• 👟 Walk the Talk: Indonesian Outflows

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

• 📒 Quick Take: Indonesia’s Year of Living Dangerously

Indonesia Moves to Reclaim 1,700-Hectare Illegal Mine After Arrest of Tycoon Samin Tan

Top Indonesian law enforcement officials and cabinet members inspected a nearly 1,700-hectare illegal coal mining site in Central Kalimantan – linked to mining tycoon Samin Tan – following his recent arrest, Jakarta Globe reported.

The site was operated by Asmin Koalindo Tuhup, a company owned by Samin, whose mining license was revoked by the government in 2017. Samin was arrested by the Attorney General’s Office on 28 March and named a suspect in a corruption case.

• 📒 Quick Take: Indonesia’s “New Order” Resurgence

• 📒 Quick Take: Indonesia’s Strongman Part One

• 📒 Quick Take: Indonesia’s Strongman Part Two

• 📒 Quick Take: Indonesia’s Strongman Part Three

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Two themes have recently stood out in Asian credit:

1. The growing interest in sovereign bonds, including those from frontier nations.

2. Data centre financing boom.

🌻 Asia’s Frontier Bonds

In March 2026, Mongolia successfully issued a USD 500 million six-year bond at a 5.95% yield to refinance debt and extend some of its maturities. Kazakhstan also plans to sell its debut yuan panda bonds and may seek to raise the equivalent of USD 500 million, Bloomberg reported.

And last week, Uzbekistan placed its “largest-ever sovereign international bonds denominated in the national currency”, amounting to USD 1 billion equivalent, at a historic low interest rate of 12.25%, according to its official statement.

I wrote in October 2025 that the returning bond tide was “partly a function of demand and supply, as China’s property meltdown blew a hole in Asia’s high-yield universe and investors had to find a way to put their money to work.” I also noted in December 2025 that Asian sovereign issuers were wading back to a more receptive offshore market.

• 👟 Walk the Talk: Asian Sovereign Signals

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Bond Tide

• 📒 Quick Take: Mongolia’s Financing Window

• 💼 Brief Take: Mongolia’s Bond Gallop

🌻 Data Centre Boom

“Few sectors generated as much attention as data centres, which lenders see as one of the clearest structural growth areas in the Asia-Pacific region,” according to some of the takeaways from the Asia Pacific Loan Market Association (APLMA)’s Global Loan Market Summit.

This is my compilation of the deals related to AI, data centres or digital infrastructure in the region over the past few months:

• WongPartnership advised Meta Platforms in its acquisition of Singapore-based Manus AI, as well as KKR in the SGD 6.6 billion (USD 5.1 billion) acquisition of STT GDC.

• Allen & Gledhill’s associate firm, Rahmat Lim & Partners, advised a Malaysian subsidiary of Yondr Group as Malaysian counsel related to credit facilities exceeding USD 900 million granted by a consortium of lenders.

• DLA Piper advised DayOne on its THB 28 billion (USD 770 million) green financing to develop Thailand’s largest data centre.

• A&O Shearman advised Digital Edge on its USD 665 million green loan for the first phase of its data center campus in Indonesia. Milbank advised the finance parties.

Acrostics Asia

Independent Asia Credit Intelligence

By Eveline Danubrata

⏩ On the Move

🔸 EY-Parthenon Launches Australian Private Debt Market Overview

Australia’s financial landscape is shifting as private credit moves from a niche product to a mainstream funding source. With banks retreating from higher-risk and complex lending under tighter regulatory settings, Australia’s private credit market has grown to an estimated AUD 234.5 billion in 2025, according to a report released by EY-Parthenon.

🔸 Kai Yun Tan Joins Ashurst as a Partner in Singapore

Ashurst is strengthening its restructuring, insolvency and special situations practice with the appointment of Kai Yun Tan as a partner in Singapore. Kai Yun brings over a decade of experience in restructuring and insolvency, and regularly advises corporate debtors, sponsors, creditors, distressed investors, and turnaround professionals. She also maintains an active maritime and shipping practice.

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

China’s Property Slump Far from Over Despite Country Garden’s Return to Profit

A string of earnings reports from major Chinese property developers released this week is doing little to suggest the sector’s prolonged slump is over, despite a return to profit by debt-ridden Country Garden, The Business Times reported.

Guangdong-based Country Garden, which was once China’s largest developer by contracted sales, swung back into the black in 2025 for the first time in three years. However, analysts said the one-off improvement was driven mainly by debt restructuring rather than a recovery in its core business operations.

Results from other major Chinese developers, including embattled state-linked Vanke and state-owned China Overseas Land and Investment, suggest that China’s property sector remains under strain.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

• 👣 Asia’s Restructuring Milestones: China’s Bankruptcy Law

Uzbekistan Places USD 1 Billion Equivalent of Bonds

Uzbekistan placed its “largest-ever sovereign international bonds denominated in the national currency”, amounting to the equivalent of USD 1 billion, in global markets at a historic low interest rate of 12.25%, according to its official statement.

Interest rates on Uzbekistan’s previous issuances of three-year international bonds in its national currency stood at 16.625% in 2024 and 15.5% in 2025.

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Bond Tide

• 📒 Quick Take: Mongolia’s Financing Window

India’s SP Group Gets Relief on $3.4 Billion Private Credit Debt

A unit of India’s Shapoorji Pallonji Group has secured approval from its major lenders to ease a key debt condition after falling collateral values pushed it closer to its borrowing limits, Bloomberg reported.

Its financing arm, Porteast Investment, will temporarily raise its loan-to-value limit to 40% from 34% for four months through 15 July.

The pressure follows a decline in the derived value of Tata Sons shares pledged as collateral. Tata Sons, the unlisted holding company of Tata Group, gets much of its value from its stake in Tata Consultancy Services (TCS). Shares of TCS have slumped more than 22% so far this year amid a broader selloff in software stocks.

• 💼 Brief Take: India’s Battle-Hardened Billionaires

• 💼 Brief Take: India’s Musical Chairs on Steroids

• 📒 Quick Take: Asia Private Credit’s Reality Check

AirAsia X to Raise Fares, Cut Capacity over Middle East War

Budget carrier AirAsia X said it will need to raise fares and cut some flights in places where it can no longer cover fuel costs, with oil prices surging due to the conflict in the Middle East, Reuters reported via CNA.

The company has raised fuel surcharges by about 20%, while fare prices have increased between 31% and 40%.

Indonesia Roundup

Indonesia Raises Jet Fuel Surcharge, Flight Ticket Prices as Oil Soars

Indonesia announced a 28-percentage-point rise in the surcharge on jet fuel, and said it will allow airlines to raise the domestic ticket price – which the government caps – by up to 13%, AFP reported via The Straits Times.

As global oil prices soar on the back of the Middle East war, Coordinating Minister for Economic Affairs Airlangga Hartarto told reporters the jet fuel surcharge would rise from 10 to 38%, and the base ticket price between 9 and 13%.

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 📸 Snapshot: Garuda Indonesia 2025 Results

• 🎒 Acrostics Asia Library: Garuda Indonesia

Danantara Pushes Asset Manager Merger With $159 Million Deal

Indonesia’s sovereign wealth fund is advancing a plan to combine the asset management units of state-owned lenders in order to boost their regional competitiveness, Bloomberg reported.

Danantara unit Danantara Asset Management signed deals to acquire the investment management subsidiaries of Bank Mandiri, Bank Rakyat Indonesia, Bank Negara Indonesia and Permodalan Nasional Madani, subject to regulatory approvals, according to stock exchange filings.

The wealth fund will acquire stakes for a total of IDR 2.7 trillion (USD 158.8 million), as it seeks to create “a champion with strong competitiveness,” Bloomberg reported.

• 👟 Walk the Talk: Danantara’s War Chest

• 📚 Acrostics Anatomy: Danantara’s Genesis

• 📚 Acrostics Anatomy: Danantara’s Bridge to Bonds

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

I was away last week so Acrostics Asia’s flows went down. Nevertheless, I kept an eye on some of the key names in Asia credit including Garuda Indonesia, which is closely watched by banks, bondholders, lessors and advisors.

Most of what I wrote last year has proven accurate so far – the divergence is that I thought Indonesian sovereign fund Danantara’s money would have bought Garuda a couple of years at least, but now the oil jump may accelerate the erosion of the flag carrier’s buffer.

These are some excerpts from my take on 25 April 2025 that laid out why a fourth restructuring would be challenging for Garuda:

The difficulty level for a new round of restructuring has increased because Garuda already went through a local in-court restructuring (PKPU) in 2022. The bankruptcies of Sritex and Arpeni Pratama Ocean Line are a cautionary tale for Garuda as it’s unlikely to get another chance if it defaults on its PKPU agreement.

Indonesian coal miner Bumi Resources also attempted a post-PKPU restructuring, but faced a potential holdout given that a Chinese bank’s request to be repaid faster risked upsetting the balance with other creditors. In the end, local conglomerates Salim Group and Bakrie Group swooped in with an equity deal partly to safeguard Bumi’s key mineral assets.

Garuda may struggle to find a white knight like Bumi did because most of its planes are leased and any prospective investor would have to deal with the Indonesian government. The airline is also running out of carrots as it already dangled the promise of a listing on the Indonesia Stock Exchange during its second restructuring.

As a state-controlled airline and publicly listed company, Garuda comes under more scrutiny than Lion Air Group, which is privately owned by Indonesian tycoon Rusdi Kirana and his family.

Lion Air also had to restructure its debt after being hit by the pandemic, but Kirana managed to get lessors to play ball by setting up a new airline, Super Air Jet, and waving the stick of leaving dissenting creditors behind.

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 🎒 Acrostics Asia Library: Garuda Indonesia

• 📒 Quick Take: Indonesia’s Restructuring Fault Lines

Another notable development in the restructuring scene was the MOU signed by the Supreme Courts of Singapore and Indonesia on cross-border insolvency cooperation.

The aim is to improve communication and cooperation in insolvency and restructuring, especially through the appointment of points of liaison, according to their media statement.

“This is helpful, especially for parties trying to coordinate parallel schemes, or run a Singapore-seated restructuring alongside an Indonesian PKPU in an offshore and onshore pairing,” Jo Tay wrote in her LinkedIn post.

“I think we should definitely see these developments alongside the expansion of the Singapore International Commercial Court’s jurisdiction to hear restructuring and insolvency proceedings.”

• 📚 Acrostics Anatomy: Singapore’s Restructuring Strides

• 👣 Asia’s Restructuring Milestones: Southeast Asia’s Mixed Platter

• ☀️ Bright Spot #17: Singapore’s Growing Restructuring Hub

• ☀️ Bright Spot #9: ASEAN Insolvency Judges and Practitioners Meeting

I’m back on the grid so Acrostics Asia’s flows should resume this week. Have a good week ahead!

Best,

E

Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.

Dear Valued Contacts,

Last week I focused on a couple of deep dives in Malaysia and Indonesia. Also do check out the compilation of Acrostics Asia’s sovereign signals across Indonesia, Vietnam, Singapore, China, Sri Lanka and Mongolia.

📒 Quick Take: Serba Dinamik’s Castle of Illusion (25 March 2026)

How did Serba Dinamik fool lenders including banks and offshore bondholders before the Malaysian energy services company’s auditor blew the whistle?

Across various sectors and countries, the common pattern is to raise money from investors or lenders by making them believe that more money will be made down the road, even though the underlying business is not generating enough cash. In short, the game is to create and maintain the illusion of a real business.

Serba’s modus operandi can be boiled down into four categories:

1. Working Capital Management

2. Elevated Margins

3. Questionable Transactions

4. Overseas Foray

📚 Acrostics Anatomy: Indonesian Restructuring Case Studies (25 September 2024)

The tricks used by Serba over the years were remarkably similar to the toolkits deployed by bankrupt Indonesian textile company Sri Rejeki Isman (Sritex). I’ve republished the Indonesian Restructuring Case Studies that I wrote back in September 2024, as some of the takeaways are applicable to other situations.

📒 Quick Take: Garuda Indonesia’s Quicksand (26 March 2026)

I wrote in May 2025 that given the restructuring fault lines in Indonesia, the options left for Garuda were to restructure its debt one by one, protect its key units, or start a new company. “All three options are unpalatable for Garuda, so officials might be tempted to throw just enough cash at the problem and pray that it’ll resurface later rather than sooner.”

The Indonesian flag carrier has now landed on quicksand, as the capital injection from sovereign fund Danantara risks drying up faster than expected. This erosion may accelerate because of three factors:

1. The Iran War has pushed up oil prices and forced some airlines to fly longer routes to avoid the geopolitical minefield.

2. The weaker rupiah has increased the costs of repairs and maintenance.

3. Nearly 40% of Garuda’s fleet was reportedly grounded, meaning that the airline has to keep paying for maintenance without being able to fly those planes.

🚨 Newsflash: Garuda Indonesia Says PKPU Ratification Recognized by French Court (27 March 2026)

There’s some good news for Garuda and its lawyers, as its local in-court restructuring (PKPU) was recognized by a French court. The Paris Civil Court also ordered Greylag Goose Leasing to pay legal costs to the flag carrier and its French subsidiary.

Greylag is one of Garuda’s lessors that waged a multi-year, multi-jurisdiction war against the airline. Garuda scored victories on critical battlegrounds, such as getting its restructuring recognized in Singapore and successfully asserting foreign state immunity in Australia.

• 📚 Acrostics Anatomy: Indonesia’s Mission to Save Garuda

• ☀️ Bright Spot #17: Singapore’s Growing Restructuring Hub

• 👣 Asia’s Restructuring Milestones: Southeast Asia’s Mixed Platter

👟 Walk the Talk: Asian Sovereign Signals (27 March 2026)

Acrostics Asia has been delivering forward-looking insights across Asian sovereigns and state-linked entities as part of its daily flow. The proof is in the file.

Australia Ramps Up Private Credit Scrutiny, Demanding More Data

Australia’s corporate regulator is boosting supervision of the private credit industry by requesting more detailed data from funds on a weekly basis, Bloomberg reported.

In a questionnaire sent this week to private credit fund managers, the Australian Securities & Investments Commission asked for data on key metrics such as defaults, redemption requests, the composition of retail and wholesale investors, liquidity and leverage. ASIC has asked for the data to be submitted every Thursday for the next six weeks.

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia Private Credit’s Reality Check

• 📒 Quick Take: Asia’s Mushrooming Private Credit

Vietnam Police Bust Multi-Billion Dollar Crypto Scam

Police in Vietnam said they busted a multi-billion-dollar scam that centered on selling fake digital currency to unsuspecting victims on an “exceptionally large scale”, AFP reported via CNA.

At least seven people were arrested in connection with the fraudulent platform that was visited by millions of Vietnamese people.

Unlike neighbouring China, which has banned cryptocurrencies outright, Vietnam has allowed blockchain technology to develop in a legal grey area – barring its use for payments but letting people speculate unimpeded.

• 💼 Brief Take: Vietnam’s Risk Zone

Malaysia’s Sunway Makes Case for IJM Buy

Sunway believes its offer to acquire IJM Corp is appropriately valued amid some skepticism from the general public and an early rejection from the latter’s 13.5% shareholder, Permodalan Nasional Bhd (PNB), The Star reported.

The group retained its stance that it will walk away from this proposed acquisition if it did not obtain a majority of IJM’s shareholders approval (50% plus one share).

Commenting on PNB’s reported rejection, Sunway’s chairman Jeffrey Cheah said the fund may not have been serious as they had rejected it three weeks ahead of the deadline.

“My take is that they are playing a bit of poker but my hope is that they will come to their good reasoning and vote for this takeover when the time comes on 6 April – and I believe they will, based on our compelling offer,” he said.

Indonesia Roundup

MSCI Deadline Tests Indonesia’s Resolve to Fix Opaque Ownership

A looming MSCI decision over Indonesia’s market status is highlighting the challenge regulators face to address opaque ownership structures and poor disclosures by the nation’s biggest companies, Bloomberg reported.

Regulators are trying to identify ultimate ownership and stakes in a system where tycoons routinely hide behind a web of related parties and affiliates to avoid scrutiny. The clash is pitting understaffed regulators with a patchy track record against powerful elites who have used that system to dominate large parts of Southeast Asia’s largest economy.

• 🎒 Acrostics Asia Library: Indonesian Outflows

Garuda Indonesia Says PKPU Ratification Recognized by French Court

Garuda Indonesia said its local in-court restructuring (PKPU) ratification has been recognized by the French court.

The Paris Civil Court also ordered Greylag Goose Leasing to pay legal costs to the Indonesian flag carrier and its French subsidiary, Garuda Indonesia Holiday France, according to its stock exchange filing.

• 📒 Quick Take: Garuda Indonesia’s Quicksand

• 👟 Walk the Talk: Garuda Indonesia’s Recapitalization

• 📸 Snapshot: Garuda Indonesia 2025 Results

Acrostics Asia has been delivering forward-looking insights across Asian sovereigns and state-linked entities as part of its daily flow.

The proof is in the file.

Indonesia

• Outflows: Acrostics Asia shows up every step of the way through Indonesia’s worst market volatility in nearly three decades, connecting the dots to help readers anticipate what’s next.

• Danantara: Acrostics Asia mapped the sovereign fund’s reason for existence and fundraising trajectory in November 2024, three months ahead of its official launch.

• Garuda Indonesia: Acrostics Asia reported Danantara’s planned capital injection into the flag carrier in April 2025, two months before the formal announcement.

• Wijaya Karya: Acrostics Asia warned in April 2025 that Wijaya Karya was headed for another restructuring due to the infrastructure budget cuts and ballooning costs of the Jakarta-Bandung high-speed rail. This was confirmed by the state-owned builder seven months later.

• Krakatau Steel: Acrostics Asia flagged the headwinds facing Krakatau Steel in May 2025, five months before the state-owned steel maker requested USD 500 million in working capital from Danantara.

Vietnam

• Acrostics Asia wrote in November 2025 that Vietnam’s bankruptcy law was considered largely ineffective to tackle distressed situations. To address these long-standing concerns, Vietnam replaced its decade-old bankruptcy legislation with a new law that took effect in March 2026.

• Acrostics Asia also flagged in June 2025 that Vietnamese developer Novaland likely had to go through a second restructuring, which was confirmed two months later. Some developers including Novaland fell into distress after the authorities tightened corporate bond restrictions, posing a risk to the local banks.

Singapore

• Acrostics Asia noted in April 2025 that Singapore has been growing as a cross-border restructuring hub. Apart from recognizing foreign proceedings, the city-state has also been building the ecosystem for crypto restructurings and refining its legal toolkit, such as by allowing the first “cross-class cramdown”.

• Acrostics Asia wrote in March 2025 that the jump in Singapore liquidations to the highest in at least 15 years was partly driven by the expiry of government-backed loans given during the pandemic. Acrostics Asia also flagged that more F&B and retail businesses risked being shuttered because of rising rents.

China

• Acrostics Asia wrote in May 2025 that some Chinese developers such as Sunac had started offering equity to creditors as the property sector took longer to recover. While China tried to clear the bills owed by local governments to private businesses, transferring the risks to the banks may create another problem if there’s no market mechanism for bad debt to exit the system.

• Acrostics Asia also noted that LGFVs, developers, local banks and ordinary households are all woven into the fabric of China’s economy, complicating official efforts to untangle these strands. Beijing signalled its tolerance for a slower pace of expansion in March 2026, while working on a reform of its bankruptcy law.

Sri Lanka

• Three months before SriLankan Airlines (SLA) struck an in-principle agreement with its offshore bondholders, Acrostics Asia flagged in August 2025 that the noteholders had limited negotiating leverage because of a clause in the sovereign debt restructuring.

• Acrostics Asia wrote in February 2026 that the Sri Lankan government had decided to retain control of SLA, but the flag carrier’s recovery will likely be hampered by its struggle to renew its fleet amid an industry-wide aircraft shortage.

Mongolia

• Acrostics Asia wrote in February 2026 that Mongolia will likely be an increasing source of debt supply, as the growth ambitions of its state and private entities should translate to higher funding needs.

• In March 2026, the government of Mongolia successfully issued a USD 500 million six-year bond with a 5.95% yield to refinance debt and extend some of its maturities.