Hin Leong’s $2.6 Billion Claim Against Deloitte Struck Out by Apex Court

The apex court of Singapore has struck out insolvent oil trader Hin Leong Trading’s largest claim of USD 2.6 billion against its former external auditor, The Business Times reported.

A five-judge Court of Appeal allowed an appeal by Deloitte & Touche that arose from a pre-trial application to strike out Hin Leong’s claim for trading losses.

Hin Leong had argued that it would have been put into liquidation earlier and not have incurred further trading losses, had Deloitte “not been negligent in its the conduct of its audit” and “uncovered the fraudulent or improper conduct of the Lim family” in their management of the company’s affairs.

In rejecting such contentions, the court determined that the trading losses were “not reasonably foreseeable” by the auditor when it undertook the engagement.

• 📚 Acrostics Anatomy: Singapore’s Restructuring Strides

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

Mauritius Keeps Role in Indian Offshore Fundraising

Indian issuers have started using offshore financial hub Gujarat International Finance Tec-City to raise debt this year, but experts say many will still fall back on foreign jurisdictions like Mauritius, IFR reported.

ReNew Energy Global in January became the first issuer to issue bonds through GIFT City, printing a USD 600 million deal. Since then, Axis Bank and HDFC Bank have used their GIFT City treasury centres to issue offshore bonds, after the Reserve Bank of India’s measures in early June to lower foreign currency hedging costs for issuers sparked a surge in offshore bond issuance.

“GIFT City provides an incentive, but it doesn’t mean companies will stop using special purpose vehicles in other jurisdictions to raise debt,” said Shubhangi Garg, a partner at Shardul Amarchand Mangaldas & Co.

• ☀️ Bright Spot #19: Asia Bond Wave

• 📒 Quick Take: Asian Credit’s Shifting Currents

Malaysia’s Growth Unexpectedly Surges to 5.8% on Exports

Malaysia reported a surprise surge in economic growth in the second quarter as robust services and electronics exports countered the impact of the war in the Middle East, The Business Times reported, citing agencies.

Strong domestic demand and a boom in semiconductor exports have helped offset disruptions from the conflict in the Middle East, reinforcing expectations that Malaysia’s economy can remain one of Southeast Asia’s fastest-growing in 2026.

Indonesia Roundup

Prabowo’s Favored Tycoon Wants to Become Indonesia’s Richest Man

Having helped bankroll Prabowo’s 2024 campaign, Andi Syamsuddin Arsyad – who goes by the moniker Haji Isam – has fast become one of the Indonesian president’s favorite businessmen as some long-established wealthy families find themselves on the outer, Bloomberg reported.

• 🛜 Southeast Asia Radar #4

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

Indonesia Coffee Chain Meets Banks for Potential IPO

An Indonesian coffee chain that counts Serena Williams and Jay-Z among its investors has held talks with banks to explore a potential listing that could value it at up to $1 billion, Wall Street Journal reported, citing people familiar with the matter.

Kopi Kenangan’s plans for an initial public offering are early-stage, and the timing and size have yet to be determined. Singapore is one of the venues the company is considering for a listing.

• 📚 Acrostics Anatomy: Singapore’s Stock Swing

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

China’s Record Consumer Defaults Undermine Beijing’s Push to Boost Spending

Consumer loan defaults have soared to record highs, and analysts expect the situation to worsen as lower-income ​Chinese in particular sink deeper into debt, Reuters reported.

It comes with Beijing actively encouraging consumers to borrow and spend as part of a years-long effort to pivot the stuttering, two-speed economic recovery ​towards domestic demand. The economy grew at the slowest pace in over three years in the second quarter, as ⁠a moribund consumer undermined robust manufacturing and exports.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

Private Lenders Near Recovery of $105 Million Sky Taipei Debt

A private loan linked to a skyscraper in the heart of Taipei is finally on track for recovery more than two years after default, highlighting the difficulties private credit lenders can face when trying to offload soured debt, Bloomberg reported.

Potential buyers have emerged for stakes in a holding company that controls the soon-to-be completed Sky Taipei. The stakes were used as collateral for a $105 million private loan that defaulted in 2023, and are currently held by receivers FTI Consulting.

• 💼 Brief Take: Asia Private Credit’s Growing Pains

• 📒 Quick Take: Asian Credit’s Shifting Currents

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

Jackson Square Aviation Delivers Two Planes Under Sale and Leaseback Deal with VietJet

Commercial aircraft lessor Jackson Square Aviation announced the delivery of the first two Airbus A321neo aircraft to Vietnam’s VietJet Air, marking the initial phase of a five-aircraft sale and leaseback agreement, according to its LinkedIn post.

The remaining aircraft included in this transaction are scheduled for delivery later this year.

• 📚 Acrostics Anatomy: VietJet vs FitzWalter

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

Indonesia Roundup

Indonesia Corporates Face Macroeconomic and Regulatory Challenges, Fitch Says

Indonesian corporates face rising risks from a challenging macroeconomic environment and increasing regulatory uncertainty, Fitch Ratings said in a report. However, most Fitch-rated Indonesian corporates hold adequate headroom at their current credit profiles.

• 📒 Quick Take: Jakarta’s Third Rail

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

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

Barito Confirms $5 Billion Offer to Acquire Geothermal Firm EDC

Indonesia’s Barito Renewables Energy has made an offer to buy geothermal company Energy Development Corp. (EDC) to expand in the Philippines, in what could be one of the largest clean energy deals in Asia in recent years, Bloomberg reported.

Barito has made an unsolicited, indicative and non-binding offer that gives First Gen Corp.-backed EDC an equity value of about $5 billion, according to a statement.

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

Udaan Raises $160 Million, Settles Singapore Insolvency Case

Indian B2B commerce platform Udaan announced a proposed financing transaction of about $160 million, a recapitalisation that settles the default on which its Singapore holding company was dragged into insolvency proceedings last month, bringing the case to a close, Financial Express reported.

The transaction comprises fresh equity, new debt and a conversion of convertible bonds into equity. Existing investors including Lightspeed Venture Partners and M&G Investments, along with other shareholders, are infusing about $50-60 million in fresh equity, while BlackRock is providing about $45 million of new debt through its private credit platform.

The remaining portion of the transaction involves certain existing bondholders converting part of their holdings into equity, while the balance will be extended on revised terms.

• 📑 3 India Headlines #3

Singapore Court Declines Stay of Byju’s Founder’s Sentence

The High Court of Singapore declined a stay on the six-month jail sentence of Byju Raveendran, meaning the founder of the failed education startup risks going to prison if he returns to the city-state, Bloomberg reported.

The court on 9 July ruled against Raveendran’s application to have the sentence halted, his law firm Lazareff Le Bars said in a statement.

Vietnam Seeks Global Capital for $1.5 Trillion Infrastructure Push

Vietnam is seeking global capital to finance what officials estimate will be about $1.5 trillion of infrastructure investment over the next decade, as the country looks beyond its banking system to fund its ambitions of becoming a high-income economy by 2045, Nikkei reported.

• 📒 Quick Take: Vietnam’s Green Shoots

• 💼 Brief Take: Vietnam’s Risk Zone

Indonesia Roundup

Indonesia Aims to Finish Financial Center Bill by 21 July

Indonesia is racing against time to pass the bill for the international financial center by the targeted 21 July, although the talks have not made much progress, Jakarta Globe reported.

President Prabowo Subianto aims to set up an investor-friendly hub in the country to attract foreign investors who wish to stay away from the Middle East uncertainties. The country is now working on a bill that will clear the way for the center’s establishment.

Indonesia Mulls Sanctions Against Companies Buying Palm Oil For Cheap

The Indonesian government has threatened strict sanctions against companies buying fresh fruit bunches for cheap from palm oil farmers, Jakarta Globe reported.

According to Agriculture Minister Andi Amran Sulaiman, global palm oil prices had recently hit IDR 27,000 (around $1.49) per kilogram. However, prices among Indonesian farmers were only at IDR 14,000 per kilogram.

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

• 📒 Quick Take: Indonesia’s Strongman Part One

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

BlackRock’s Asia Private Credit Push Hits Another Snag in India

A BlackRock private credit fund is in talks to extend the maturity of a loan it provided to an Indian e-commerce brand aggregator, Bloomberg reported, citing people familiar with the matter.

Goat Brand Labs is proposing to extend the maturity of $17 million of private debt to September 2028 from December 2027, while also requesting BlackRock to forgo a 6% annual cash coupon, according to a document seen by Bloomberg. The deal, which has a so-called payment-in-kind structure, is expected to generate an internal rate of return of about 16%, the documents added.

• 💼 Brief Take: Asia Private Credit’s Growing Pains

• 📒 Quick Take: Asian Credit’s Shifting Currents

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

Temasek-Backed Seviora, Churchill Asset Management Close $400 Million in Collateralised Fund Obligation

Temasek’s main asset management platform Seviora and Churchill Asset Management announced a close of about USD 400 million in a collateralised fund obligation, The Business Times reported.

The structured product will invest across Seviora’s Asian private credit and global fund-of-funds strategies, as well as Churchill’s US junior capital and private equity secondaries strategies.

• 📒 Quick Take: Asia’s Mushrooming Private Credit

Vietnam Developers Raise Over $2.3 Billion Through Private Bond Placements in June

Vietnam’s real estate developers accelerated bond issuances via private placements in June, raising more than VND 60.66 trillion ($2.31 billion) in a single month, The Investor reported.

According to market data, 15 property companies completed 21 privately placed bond issuances during the month, with the majority of proceeds coming from several large developers and legal entities linked to major real estate groups.

The bonds carried a weighted average coupon rate of around 11.27% per year and an average maturity of 29.7 months, reflecting the relatively high cost of capital for real estate companies amid ongoing funding needs.

Issuance activity was highly concentrated among a few major players. Leading the market was Vinhomes, which issued five bond tranches worth a combined VND 22 trillion ($837.6 million), accounting for 36.3% of total issuance value.

• 💼 Brief Take: Vietnam’s Risk Zone

• 👟 Walk the Talk: Novaland

• 📚 Acrostics Anatomy: Novaland’s Debt Woes 2.0

Indonesia Roundup

S&P Maintains Indonesia Credit Rating

Credit ratings agency S&P affirmed Indonesia's BBB/A-2 sovereign credit ratings, saying recent fiscal strains should be temporary and could be offset by stronger commodities prices and spending cuts, Reuters reported via CNA.

Indonesia’s policies to boost revenue and export earnings from the resource sector should lift revenue over time, supporting the rating outlook, S&P said. “The stable outlook also reflects our expectation that the government continues to view its 3 per cent annual deficit ceiling as an important policy anchor,” it added.

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

No Tax Hikes as Indonesia Faces Revenue Shortfall, Finance Minister Says

Finance Minister Purbaya Yudhi Sadewa said the government will not raise tax rates despite projecting this year’s tax revenue to fall short of the state budget target, opting instead to strengthen collections by broadening the tax base through better use of data and technology, Jakarta Globe reported.

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

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

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

RBA Bracing for Private Credit Default Rates to Increase

The Reserve Bank of Australia is bracing for mounting defaults across the ballooning private credit sector and is concerned that any financial shock from the industry will be exacerbated by highly concentrated loan books in the property sector among fund managers, AFR reported.

Internal documents from the central bank released to The Australian Financial Review under Freedom of Information also reveal that the RBA is worried about the fallout from a rupture in overseas private credit markets, such as the collapse of a major fund.

• 💼 Brief Take: Asia Private Credit’s Growing Pains

• 📒 Quick Take: Asian Credit’s Shifting Currents

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

Singapore’s CapitaLand Disbands Special Opportunities Team

Singaporean asset manager CapitaLand Investment has disbanded its special opportunities team, bringing an end to a dedicated unit that was set up to pursue investment strategies that typically came with higher risks, Bloomberg reported.

The five-person team was led by Gabriel Fong, who left in December after less than two years at the firm. He joined Ares Management around a month later. Two other members of the team headed for the exit in June, while the remaining two have been reassigned to other areas within CapitaLand Investment.

CapitaLand has been grappling with challenges in its core markets, according to Bloomberg. Its workforce in China shrank by about 10% last year as the country’s property slump raged. Headcount in Singapore also declined.

• 💼 Brief Take: China’s Battle of the Chops

China Vanke’s Board Overhaul Cements Shenzhen State Control

China Vanke has nominated a new board entirely controlled by Shenzhen’s state-owned sector, marking the end of the embattled developer’s long-standing professional-manager system, Caixin reported.

All six candidates for non-independent director seats on its next board come from Shenzhen’s government or state-owned enterprises, according to a company filing. None are from the developer’s longtime professional-management team.

Vanke said it expects a first-half net loss attributable to shareholders of between 12 billion yuan ($1.8 billion) and 15 billion yuan, widening from a loss of about 11.95 billion yuan a year earlier.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

Indonesia Roundup

Pos Indonesia Delays Sukuk Payment Due to Cash Shortage

Indonesian state-owned postal company Pos Indonesia has delayed the payment of IDR 24.12 billion (USD 1.3 million) for its Islamic bonds (Sukuk) due to a cash shortage, according to its stock exchange filing.

• 📚 Acrostics Anatomy: Indonesian SOE State of Play

• 📚 Acrostics Anatomy: Indonesia’s SOE Circuit

Indonesia’s Anti-Graft Prosecutor Quits After Police Seize Gold, Cash

Indonesia’s top anti-corruption prosecutor resigned on Saturday (11 July 2026), the Attorney General’s Office said, after police investigating graft cases seized millions of dollars in cash and gold bars from properties including his home, AFP reported via CNA.

Assistant Attorney General for Special Crimes Febrie Adriansyah stepped down following raids this week on at least 12 locations that included properties linked to him in and around the capital, Jakarta.

• 🛜 Southeast Asia Radar #3

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

I am teaming up with the International Women’s Insolvency & Restructuring Confederation (IWIRC) to present a panel discussion on Southeast Asia’s restructuring evolution. I hope you’ll be able to join us on Wednesday, 29 July 2026, as we will discuss the latest restructuring developments across Singapore, Indonesia, Malaysia and Vietnam.

Singapore lawyers can obtain one Public Continuing Professional Development (CPD) point by attending this event. For those who are not based in Singapore, you can also dial in virtually.

Click here to find out more and register for the event.

🛜 Southeast Asia Radar #4 (10 July 2026)

Note: Click the link to read the full Radar.

In April last year, I flagged that capital had flowed out of Indonesia partly due to fears of being caught on the wrong side of the power consolidation after President Prabowo Subianto took office. I reconstructed the deteriorating relationship between some of these tycoons and the presidential palace.

Turning to Vietnam, a couple of financial advisors were monitoring Vingroup because of the conglomerate’s large-scale ambitions and perceived pockets of weakness. But the group founded by well-connected Vietnamese billionaire Pham Nhat Vuong seems to have retained access to both onshore and offshore financing.

Around the Region

• Philippines: The sovereign issued USD 2.5 billion bonds, Philippine Airlines sold USD 300 million notes, Fitch said banks may face higher credit impairments this year.

• Singapore: DBS completed its inaugural synthetic securitisation, while Singapore’s best-known F&B brands retreated from China.

• Malaysia: Malaysia’s unemployment rate stayed at an 11-year low, but economists said the headline figure masks a deeper problem: underemployment.

People to Watch

• Hendra Soenardi represented Xiamen ITG Group and its Indonesian subsidiaries in initiating court-supervised restructuring (PKPU) proceedings against Wanxiang Nickel Indonesia.

🚨 Newsflash: Del Monte Pacific Responds to SGX Query on Net Capital Deficit (8 July 2026)

Del Monte Pacific has issued a response to a query from the Singapore Exchange (SGX) on its net capital deficit and ability to continue operating as a going concern. I’ve extracted the key points from the company’s filing to the SGX.

📑 3 India Headlines #4 (12 July 2026)

Note: Click the link to read the full Headlines.

• Adani’s Comeback: Barely two months after settling its major legal disputes in the US, Adani Group has lined up nearly USD 10 billion in fresh capital and strategic investment commitments, Mint reported on 7 July 2026. I wrote four months ago that some lenders stood by Gautam Adani because they believed that the outcome of the US cases should be manageable for the Indian billionaire. Since then, Adani’s easing US legal woes have paved the way for his group to resume its fundraising momentum.

• SP Group’s Bond Launch: Shapoorji Pallonji Group (SP Group) opened its first-ever USD bond issue for subscription, looking to raise USD 650 ​million, Reuters reported. I wrote two months ago that SP Group’s refinancing story is not necessarily about fundamentals, as it hinges on the shared incentives among the company, existing creditors and arrangers to maintain the hope of a potential monetization of its stake in Tata Sons.

• Snail Speed: India’s Supreme Court recently criticised the slow pace of trial in a commercial suit pending before the Delhi High Court since 2015, Bar and Bench reported. “The suit in question was filed in 2015. As of 2026, plaintiff’s evidence is ongoing. We may say that even a snail may question the speed at which this trial is proceeding,” the Court said.

🧱 Building Notes (11 July 2026)

One of the core values for Acrostics Asia is that relationships matter. Long-term upside should be prioritized over short-term gains, trust has to be earned overtime, and showing up beats buzz words.

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

India’s SP Group Opens Debut Dollar Debt Issue After Multiple Delays

India’s Shapoorji Pallonji Group opened its first-ever USD bond issue for subscription on Friday, looking to raise $650 ​million, Reuters reported, citing three sources aware of the matter.

The bond issue, delayed several ‌times since the start of the year, is part of the company’s planned 255 billion rupees ($2.68 billion) fundraise, mostly to refinance existing debt. Mercury Finance, an SP Group company, is selling three-year securities ​at a yield of 14.50%, with a right to redeem them at the end of one year.

• 📑 3 India Headlines #3

• 💼 Brief Take: SP Group’s Tata Timer

• 💼 Brief Take: SP Group’s Chess Piece

• 💼 Brief Take: Keeping the SP Dream Alive

Is Vietnam Heading for a Property Bubble?

Home prices in Vietnam’s biggest cities are soaring, leaving many struggling to afford a place of their own. As investors fuel the boom, CNA Insight asks: is this a sign of lasting growth or the warning signs of a property bubble?

• 💼 Brief Take: Vietnam’s Risk Zone

• 👟 Walk the Talk: Novaland

• 📚 Acrostics Anatomy: Novaland’s Debt Woes 2.0

Del Monte Pacific Defends Going-Concern Status

Del Monte Pacific has defended its ability to remain a going concern, pushing back against regulatory concerns over its working capital deficit and thin cash reserves, The Business Times reported.

Responding to queries from the Singapore Exchange (SGX) about its financial year 2026 results, the dual-listed canned food producer said that its operating business remains “fundamentally sound”, and that its liquidity issues are tied to its capital structure, not deteriorating operations.

Del Monte Pacific is working with an external financial restructuring adviser to finalise an integrated plan to reorganise its obligations.

While one principal banking counterparty has formally waived covenant requirements through September 2027, waivers from the company’s other main lenders are set to expire in or around September 2026.

• 📸 Snapshot: Del Monte Pacific’s $1.2 Billion Restructuring Plan

• 📚 Acrostics Anatomy: Del Monte’s Philippine Lifeboat

Indonesia Roundup

Indonesia Police-Military Tensions in Focus After Jakarta Raids

Indonesian officials sought to play down signs of a rift between security agencies after police raids in Jakarta brought several alleged graft cases into public view and drew a senior prosecutor into a widening controversy, Bloomberg reported.

Police this week seized gold bars, cash and foreign currencies worth tens of millions of dollars in a series of raids in and around the capital, saying the searches were linked to at least three corruption and money-laundering investigations, including alleged coal-supply graft tied to recent power blackouts.

• 🛜 Southeast Asia Radar #3

Tokopedia Denies Mass Lay-Offs, But ‘Restructuring’ Deepens Tech Winter Fears

Reports of sweeping lay-offs at Tokopedia, the Indonesian e-commerce giant majority-owned by China’s ByteDance, have renewed concerns about Southeast Asia’s largest digital economy as analysts warn the country’s tech winter shows few signs of easing, South China Morning Post reported.

Tokopedia cut more than 450 technology roles earlier this month, leaving just 35 such workers at the company, CNBC Indonesia reported, citing an unnamed company source.

• 📒 Quick Take: Indonesia’s Wave of Layoffs

• 📚 Acrostics Anatomy: eFishery’s Fishy Accounting

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

China Caps LGFV Bond Yields

A Chinese regulator has imposed a new round of rules on local government financing vehicles in the offshore bond market to control their debt risks, IFR reported.

The National Development and Reform Commission has given unofficial “window guidance” requiring LGFVs to keep the all-in yields for offshore renminbi bonds under 4% and US dollar bonds under 5%, according to two bankers.

The window guidance did not specify any tenors but deals from LGFVs are mostly under three years.

• 💼 Brief Take: China’s LGFV Pruning

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

Philippine Airlines Raises $300 Million In First Bond Sale Post Bankruptcy

Philippine Airlines (PAL) – controlled by tobacco and banking tycoon Lucio Tan – has raised $300 million through the sale of five-year bonds, providing funds to help fund the flag carrier’s fleet modernization and expansion, Forbes reported.

The five-year senior unsecured guaranteed bond was priced at 7.75% and issued by wholly owned subsidiary Primero Agila, the Philippine flag carrier said in a statement. The bonds were 4.5 times oversubscribed with an order book of more than $1.4 billion.

It’s the first bond sale for PAL since emerging from Chapter 11 bankruptcy proceedings in the US in December 2021. Proceeds from the bond sale will help fund the airline’s international expansion as it seeks to increase flights into key North American hubs such as Chicago, New York, Toronto and Vancouver.

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

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

• ☀️ Bright Spot #19: Asia Bond Wave

Singapore’s Temasek Hits Record Portfolio Value

Singapore state investor Temasek Holdings saw its net portfolio value climb to SGD 518 billion (USD 401 billion) for the year ended 31 March, a second straight annual record, CNBC reported.

Temasek said it sees opportunities in three areas: artificial intelligence, private credit, and what it calls “core-plus” infrastructure such as renewable and nuclear energy, energy storage, and decarbonization technologies.

• 🛜 Singapore Radar #1

• ☀️ Bright Spot #15: Singapore’s “Exceptional” Growth

Indonesia Roundup

Financial Regulator Denies Foreign Banks Are Pulling Funds From Indonesia

Indonesia’s Financial Services Authority (OJK) has rejected reports that foreign banks are withdrawing funds from the country due to concerns over government policies, saying the transfers represent routine profit repatriation rather than a loss of investor confidence, Jakarta Globe reported.

Dian Ediana Rae, OJK’s executive head of banking supervision, dismissed the claim, describing it as an exaggerated interpretation of a normal investment practice.

• 🛜 Indonesia Radar #1

• 👟 Walk the Talk: Indonesian Outflows

Latham Advises Arsari Capital on Financing and Joint Venture With Indosat Ooredoo Hutchison

Latham & Watkins has advised Arsari Group, a diversified Indonesian family-owned investment platform, on the financing and joint venture with Indosat Ooredoo Hutchison to form Infra Fiber Teknologi, an independent digital fiber infrastructure platform in Indonesia.

The transaction involved an asset transfer of over 86,000 km of Indosat’s existing fiber optic network, including backbone infrastructure, domestic submarine cables, and access networks, according to the law firm’s press release. It was financed by a combination of equity, senior, and mezzanine debt.

• ☀️ Bright Spot #19: Mega Deals

• ☀️ Bright Spot #18: Data Centre Boom

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

China Targets Inflated AAA Bond Ratings in Sweeping Cleanup

A sweeping regulatory crackdown on credit rating inflation in China’s bond market has triggered a wave of downgrades and rating terminations, with authorities zeroing in on unjustified AAA grades, Caixin reported, citing sources familiar with the matter.

The campaign, which intensified last month, pressures domestic rating agencies to enforce stricter evaluation standards.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

Japan Payment Processor Collapse Hits Banks, Restaurants

The bankruptcy of Zentoshin, an Osaka-based credit card payment processor, threatens both the regional banks which funded it as well as the small and medium-sized restaurants that relied on its services, Bloomberg reported.

Zentoshin filed for bankruptcy with the Osaka District Court on 6 July, according to Teikoku Databank, Japan’s largest private corporate credit research firm. The company had total liabilities of approximately ¥115.2 billion ($710 million), at the time of the filing, making it Japan’s largest corporate bankruptcy of the year.

Five listed regional banks and banking groups, including Towa Bank and San ju San Financial Group, have said they will take writedowns because of the failure.

Uzbekistan’s AKFA Picks Citi, JPM to Sound Out Bond Investors

AKFA Aluminium Group, one of Uzbekistan’s largest private companies, is set to meet international investors next week as it explores issuing its first ever bond, Bloomberg reported, citing people familiar with the matter.

The producer of aluminum and plastic products has selected Citigroup and JPMorgan Chase & Co to organize a two-day roadshow starting in London on 13 July.

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

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Bond Tide

Indonesia Roundup

S&P Dow Jones Puts Indonesia on Watch List for Market Downgrade

Global index provider S&P Dow Jones Indices warned Indonesia risks a downgrade to frontier from emerging status over market transparency issues, echoing a similar caution from rival MSCI in the latest setback to Southeast Asia’s biggest economy, Reuters reported via The Business Times.

• 👟 Walk the Talk: Indonesian Outflows

Danantara Seals Creation of Indonesia’s Biggest Asset Manager

Indonesia’s sovereign wealth fund Danantara has finalized the merger of four local firms to create the nation’s largest asset manager as it seeks to compete more effectively with financial institutions across the region, Bloomberg reported.

The asset management units of Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Mandiri and Permodalan Nasional Madani have been rolled into one company under Mandiri Manajemen Investasi, according to a statement from the State-Owned Enterprises Agency.

• 📒 Quick Take: Indonesia’s SOE Supremo

• 👟 Walk the Talk: Danantara

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

Why China Took Over Zhongbang Bank

Years of aggressive expansion and flawed corporate governance have laid bare fresh vulnerabilities in China’s banking system, prompting regulators to step in to rescue an underperforming regional player, South China Morning Post reported.

Zhongbang Bank, a lender in central China’s Hubei province mired in a credit crisis, has become the latest to force Beijing into action amid official clean-up efforts to create a healthy banking system.

The National Financial Regulatory Administration (NFRA) announced that it would take over Wuhan-based private lender Zhongbang Bank, citing grave credit risks.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

Malaysia’s Low Unemployment Masks Deeper Crisis of Underemployed Graduates

Malaysia’s unemployment rate stayed at an 11-year low of 2.9% for five months from November 2025, before inching up to 3% in April, government data showed. But economists told the Straits Times that the headline figure masks a deeper problem: underemployment.

Some 2.06 million people in Malaysia were in skill-related underemployment in 2024, a figure that is on an upward trend, affecting 36% of tertiary-educated employed people, according to the government’s 2026 Labour Force Statistics.

This includes graduates and skilled workers who are employed, but in jobs that do not fully utilise their education, training or capabilities.

Moody’s Warns Asia-Pacific Private Credit Expansion to Slow

Growth in private credit fundraising and deployment in the Asia Pacific will slow over the next 12 to 18 months as macroeconomic uncertainty, geopolitical tensions, and elevated interest rates weigh on investor appetite for illiquid assets, Bloomberg reported, citing Moody’s Ratings.

Redemption requests that have hit global private credit funds have resulted in greater scrutiny of liquidity terms and may temper incremental inflows into the APAC region, especially from retail and wealth channels.

Still, fundamental demand for private credit in APAC should remain robust, underpinned by economic expansion and bank retrenchment from riskier and capital intensive lending.

• 💼 Brief Take: Asia Private Credit’s Growing Pains

• 📒 Quick Take: Asian Credit’s Shifting Currents

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

• 📒 Quick Take: Asia’s Mushrooming Private Credit

Indonesia Roundup

‘Payback Time’: Indonesia’s ‘Dragons’ versus the President

Prabowo’s confrontational approach – in sharp contrast to the cordial ties of previous presidents – is rattling the business elites who for generations have controlled key industries including mining, palm oil, retail and construction, The Financial Times reported.

The relationship between the tycoons and the presidential palace was the worst they have ever been under any president, said an adviser to one of the country’s richest families.

Some of the tycoons are already delaying investments or considering deploying capital overseas, according to interviews with advisers to four different tycoons. Some were forgoing bidding for government contracts in an effort to avoid scrutiny.

Acrostics Asia wrote on 1 February 2026:

Some conglomerates have refrained from committing to major domestic investments partly because of worries about asset seizures and other forms of state crackdown…The pressure on state-owned banks and business tycoons to step up their national service may create a chilling effect that restricts flows to the broader economy.

• 📒 Quick Take: Indonesian Outflows

• 🛜 Indonesia Radar #1

Indonesia’s 2026 Budget Deficit Outlook Seen at 2.85% of GDP

Indonesia’s budget deficit is expected to widen to 2.85% of GDP this year, bigger than originally predicted, even as the government aims to scale back spending on the president’s flagship school meals program, Reuters reported via The Business Times.

The new estimate, which is close to the legislated deficit ceiling of 3% of GDP, was released by Said Abdullah, the head of parliament’s budget commission, at the start of a hearing with the finance ministry. It is wider than both the government’s previous estimate of a deficit of 2.68% this year and the 2025 budget gap of 2.81% of GDP.

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

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

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

India’s High-Yield US Dollar Bond Pipeline Grows

India’s high-yield supply is building as a clutch of issuers prepare to raise US dollar bonds following an easing in hedging costs, IFR reported.

Indian high-yield issuers have printed USD 4.1 billion of bonds this year, according to IFR data, compared with USD 4.6 billion in the whole of last year.

Non-bank lender Capri Global Capital is planning to make its debut in the US dollar market after conducting investor calls, according to IFR. Continuum Green Energy is also preparing a potential benchmark dollar bond offering in the coming months from its treasury centre at Gujarat International Finance Tec-City.

• ☀️ Bright Spot #19: Asia Bond Wave

• 📒 Quick Take: Asian Credit’s Shifting Currents

• 📒 Quick Take: Asia’s Bond Tide

China Vanke Names Former Shenzhen Financial Regulator as President

China Vanke has appointed a former Shenzhen financial regulator as president, filling a role left vacant for more than a year as the state-backed developer struggles to contain a deepening liquidity crisis, Caixin reported.

The Shenzhen-based company said that its board approved the appointment of Huang Yu, who was nominated by chairman Huang Liping.

The appointment marks the end of Vanke’s long-standing governance model built around internally promoted professional managers, while further cementing the influence of its state-owned shareholders.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

Tokenisation Could Ease Liquidity Bottlenecks in Next Phase of Cross-Border Payments, Say Panellists

Liquidity has emerged as one of the biggest remaining hurdles in cross-border payments, with tokenisation offering banks a more efficient way to fund transactions, The Business Times reported, citing industry panellists.

This comes as the industry moves towards round-the-clock settlement, executives from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), DBS and Standard Chartered said at a panel.

Indonesia Roundup

Thousands of Indonesian Coal Workers Face Layoffs as Mining Permits Stall

More than 15,000 workers at coal mining companies in East Kalimantan province face potential layoffs as the government has yet to process the extension of 26 mining permits that have been pending for six months, Jakarta Globe reported, citing workers’ representatives.

The uncertainty has forced several mining companies in Kutai Kartanegara Regency to halt operations, raising fears of wider job losses in one of Indonesia’s largest coal-producing regions.

• 📒 Quick Take: Indonesia’s Wave of Layoffs

• 👟 Walk the Talk: Indonesia’s Economic Fissures

Danantara Indonesia Says Financial Report is Still Being Processed

Sovereign wealth fund Danantara Indonesia said that the companies under its control have all completed their financial statements for 2025, but the fund is still in the process of finishing its consolidated financial report for the year, Reuters reported via CNA.

Danantara executives previously said its full financial report would be released before the end of June. Investors and analysts are closely monitoring the report’s release, which will be Danantara’s first since it was formed in February 2025.

• Acrostics Asia: Live Deal Intelligence

• 💼 Brief Take: Danantara’s International Bond Splash

• 🛜 Indonesia Radar #2

• 👟 Walk the Talk: Danantara’s War Chest

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

Acrostics Asia covered a couple of major developments across Southeast Asia and India last week. The latest edition of Research Corner also included insights on private credit and data centres in Asia Pacific, as well as restructuring and insolvency developments in Australia, Singapore and Indonesia.

🛜 Southeast Asia Radar #3 (30 June 2026)

An Indonesian court sentenced former education minister and Gojek co-founder Nadiem Makarim to 10 years in prison. His court verdict also came after four former executives of Indonesian state-owned venture capital firms were jailed between two and five years for investing in an agricultural startup that went bust.

Around the Region

• Thailand: The National Credit Bureau warned that as large loans become harder to obtain, smaller consumer loans are spreading more quickly, creating new repayment risks across a wider base of borrowers.

• Philippines: Del Monte Pacific

• Singapore: Record-high power bills, AirTrunk

People to Watch

• Latham & Watkins has advised Vietnam’s Vingroup on a USD 255 million private credit financing for its hospitality arm Vinpearl.

📑 3 India Headlines #3 (4 July 2026)

• SP Group’s Tata Timer: SP Group aims to raise INR 255 billion (USD 2.7 billion) through the sale of three-year bonds yielding 18.95%, Reuters reported. Within 18 months of the debt being issued, either Tata Sons must be listed or an arrangement is made to allow SP Group to sell its Tata Sons shares privately at a mutually agreed price.

• Udaan’s Bond Default: Global creditors of B2B e-commerce firm Udaan have initiated insolvency proceedings in the Singapore High Court after its offshore holding company defaulted on USD 170 million compulsorily convertible notes due on 30 June, The Economic Times reported.

• Jet Airways Employee Relief: An Indian tribunal ruled that former Jet Airways employees’ provident fund, pension and gratuity dues must be paid in full and kept outside the liquidation pool from which other creditors, including banks, will be paid.

📖 SP Group: India’s Musical Chairs on Steroids

Nearly six months ago, I described Indian conglomerate Shapoorji Pallonji Group (SP Group)’s refinancing strategy as a game of high-yield musical chairs.

SP Group’s borrowing costs kept rising while the company controlled by the Mistry family, lenders and arrangers were all hoping to eventually cash out its illiquid stake in Tata Sons.

I wrote on 20 May 2026 that some creditors were likely betting that the Tata Sons stake is an important piece that can be monetized one way or another, but prospective lenders were also not leaving everything to chance as they had set the clock ticking for SP Group to extract some cash from its shareholding.

The latest terms suggest investors are tightening the bolts even further, as The Economic Times reported that SP Group’s financing would include a deleveraging covenant requiring repayment of at least INR 135 billion (USD 1.4 billion) within 24 months of issuance. Failure to meet the repayment obligation would constitute an event of default.

🔎 Research Corner #5 (2 July 2026)

I created Research Corner to put together some good research across Asian credit and beyond that can help readers to make sense of the evolving trends.

In the fifth edition:

• What a Wave of Corporate Defaults Means for Thai Inc by S&P Global Ratings

• Leveraged Finance & Private Credit Conference 2026 – Key Takeaways from the Sponsors’ Perspectives and Insights Panel by the Asia Pacific Loan Market Association (APLMA)

• Factors Shaping Data Centre Development in Asia Pacific by Pinsent Masons

• Creditors’ Schemes of Arrangement: Lessons from Twinza Oil by Clifford Chance

• MinLaw to Implement Recommendations to Enhance Singapore’s Corporate Restructuring and Insolvency Regime by Rajah & Tann

• Assessing the Effectiveness of Asset Execution and Insolvency in Recovery Strategies by ADCO Law

Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.

India’s SP Group Floats Fresh Term Sheet for Debt Fundraise

India’s Shapoorji Pallonji Group (SP Group) has returned to investors with a revised debt fundraising plan aimed at refinancing existing borrowings, days after an earlier proposal fell through, Reuters reported via Business Recorder, citing three sources and a term sheet.

Eqyizen Investment, an SP Group company, is looking to raise 255 billion rupees ($2.68 billion) through the sale of three-year zero-coupon bonds, with an additional greenshoe option of 39 billion rupees. The bonds will offer a yield of 18.95% and will be secured against SP Group’s stake in Tata Sons held through subsidiary Cyrus Investments.

Under the revised proposal, within 18 months of the securities being issued, either Tata Sons must be listed or an arrangement is made to allow SP Group to sell its Tata Sons shares privately at a mutually agreed price.

• 📑 3 India Headlines #2

• 💼 Brief Take: SP Group’s Tata Timer

• 💼 Brief Take: SP Group’s Chess Piece

• 💼 Brief Take: Keeping the SP Dream Alive

Clogged Pipeline: Many Hong Kong IPO Hopefuls Near Application Expiration

A large number of mainland Chinese companies hoping to list shares on the Hong Kong stock exchange are anxiously waiting for a nod from the mainland securities regulator, with many now at risk of having their listing applications lapse, South China Morning Post reported.

More than 430 companies were currently waiting in the initial public offering (IPO) pipeline, according to data from bourse operator Hong Kong Exchanges and Clearing (HKEX).

The backlog in the first half of the year was the most severe since March 31, 2023, when a mechanism was put in place that requires approval from the China Securities Regulatory Commission (CSRC) before HKEX can convene a listing hearing, according to Roy Lo, managing partner of accounting and consulting firm SW Hong Kong.

A Bankrupt Cannot Remove Trustee Simply Because Their Relationship Soured: Singapore High Court

After clashing with his court-appointed private trustee, a bankrupt man asked the Singapore High Court to have the trustee removed, citing what he described as an “irreparable breakdown” in their working relationship, The Straits Times reported.

But the court dismissed Alvin See Chuen Lim’s application, ruling that he has no legal standing to seek the trustee’s removal. It added that, even if he did, none of the complaints he raised came close to meeting the high legal threshold for the court to interfere with a trustee’s decisions.

• 🛜 Singapore Radar #1

• 📚 Acrostics Anatomy: Singapore’s Restructuring Strides

• 📚 Acrostics Anatomy: Singapore Squeeze

Indonesia Roundup

Indonesian Factories Struggling amid Muted Demand, Surging Costs

Indonesia’s manufacturing sector suffered its sharpest contraction in a year as new orders dried up and factory-gate prices rose at the fastest pace in nearly 13 years, intensifying calls for government intervention, The Jakarta Post reported.

The purchasing managers’ index (PMI) for Indonesia’s manufacturing sector plunged to 46.9 in June, according to data published by S&P Global. That marks a significant drop into from May, when the reading was exactly at the 50-point threshold that separates expansion from contraction.

• 🛜 Southeast Asia Radar #3

• 🛜 Southeast Asia Radar #2

• 👟 Walk the Talk: Indonesia’s Economic Fissures

Indonesia’s Danantara Wealth Fund Sees Senior Management Shakeup

Indonesian sovereign wealth fund Danantara is reshuffling its management team with a series of new hires, Bloomberg reported, citing people familiar with the matter.

Daniel Ginting, a former partner at law firm Ginting & Reksodiputro, has joined the fund as a managing director for legal and compliance. Robertus Billitea, who held that position previously, has moved to Danantara Trust, the charity arm of the wealth fund.

Pahala Mansury, former vice chairman of Bank Negara Indonesia, has been hired as managing director for global relations and governance, replacing Mohamad Al-Arief who left Danantara. Meanwhile, managing director for risk and sustainability Lieng-Seng Wee has also resigned.

• Acrostics Asia: Live Deal Intelligence

• 💼 Brief Take: Danantara’s International Bond Splash

• 🛜 Indonesia Radar #2

• 👟 Walk the Talk: Danantara’s War Chest

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

Global Creditors Drag Udaan’s Parent to Bankruptcy Court in Singapore After Bond Default

Global creditors of Udaan, including banks and hedge funds, have initiated insolvency proceedings in the Singapore High Court after its offshore holding company Trustroot Internet defaulted on $170 million compulsorily convertible notes due on 30 June, The Economic Times (ET) reported, citing people aware of the development.

The creditors have hired Alvarez & Marsal as the official liquidator in the bankruptcy proceedings, according to ET.

Lenders to the B2B ecommerce unicorn have engaged Singapore law firm WongPartnership to represent them in the case, DealStreetAsia (DSA) reported. An Udaan spokesperson told DSA that these matters have no bearing on its operating entities in India.

• 📚 Acrostics Anatomy: Singapore’s Restructuring Strides

India M&A Funding Rule to Squeeze Private Credit, Moody’s Says

India’s decision allowing banks to fund acquisitions can potentially hurt private credit funds as it would squeeze returns in one of their most lucrative businesses, Bloomberg reported, citing Moody’s Ratings.

“While the new rules may benefit borrowers by lowering costs for financing and increasing its availability, they could compress yields and reduce deal flows for private credit providers for acquisition financing,” Moody’s said in a report.

Acquisition funding has traditionally been a lucrative opportunity for private credit investors through so-called “special situations” transactions, where funds provide flexible, bespoke financing at a premium over bank loans, particularly to relatively weaker companies. They will now face competition as local banks step in.

• 🛜 India Radar #1

• 📑 3 India Headlines #2

• 💼 Brief Take: Asia Private Credit’s Growing Pains

UOB Breaks Ground on $450 Million Tower in Vietnam’s International Financial Centre

Singapore’s United Overseas Bank (UOB) broke ground on an office tower in Ho Chi Minh City, becoming the first foreign bank to set up a dedicated headquarters in the city’s Vietnam International Financial Centre, The Business Times reported.

Speaking at the groundbreaking ceremony, UOB deputy chairman and CEO Wee Ee Cheong expressed hope that the project, with a total investment of about USD 450 million, could begin operations within two years – ahead of its 2030 completion target.

• 📒 Quick Take: Vietnam’s Green Shoots

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

• 🤝🏻 Guest Take: Key Insights on Vietnam’s IFC Specialised Courts Law by Indochine Counsel

Indonesia Roundup

Indonesia’s Widodo Backs Son’s Party for 2029 Election with Political Tour

Indonesia’s former president Joko Widodo has begun a nationwide tour that analysts say is aimed at transforming his youngest son’s small political party into a major force before the 2029 elections, South China Morning Post reported.

Widodo kicked off the tour in Lampung on Friday, using the visit to appear alongside Indonesian Solidarity Party (PSI) officials and accept a local royal title, signalling that he remains a force in Indonesian politics even after leaving office.

PSI is a youth-oriented party founded in 2014 and now chaired by his youngest son, Kaesang Pangarep.

• 🛜 Southeast Asia Radar #3

• 🛜 Southeast Asia Radar #2

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

MUFG and Pertamina Sign USD 1.5 Billion Committed Loan Facility

MUFG Bank’s Jakarta Branch and Indonesian state-owned energy company Pertamina recently announced the signing of a USD 1.5 billion committed short-term loan facility, which includes an additional USD 1 billion accordion feature, according to the bank’s press release.

MUFG is acting as Mandated Lead Arranger, Underwriter, and Bookrunner (MLAUB) for the facility.

• 📚 Acrostics Anatomy: Indonesian SOE State of Play

• 📚 Acrostics Anatomy: Indonesia’s SOE Circuit

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

Repayment Question Looms as China Speeds Up Special Bond Issuance

The National Audit Office looked into how local governments across nine provinces were managing their special-purpose bonds in 2024 and found 132.6 billion yuan ($19.5 billion) in funds that had been used problematically, Caixin reported.

It was not the first such finding – audits in recent years had repeatedly turned up similar patterns. Localities had inflated projected returns to win approval, allowed funds to sit idle after disbursement, and quietly redirected money to cover operating expenses or repay unrelated debts.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

Wanda Ordered to Pay Suning 1.75 Billion Yuan Over Failed IPO

A Chinese court has ordered real estate conglomerate Dalian Wanda Group to pay retailer Suning.com about 1.75 billion yuan ($250 million), ending a dispute over a failed IPO attempt, Caixin reported.

Suning received a first-instance civil judgment from the Nanjing Intermediate People’s Court ordering Wanda to refund the “remaining amount” from Suning’s 2018 investment ahead of the scrapped listing of Wanda’s commercial property management arm, while dismissing the retailer’s other claims, Suning said in a stock exchange filing.

Jet Airways Liquidation: NCLAT Backs Full Provident Fund, Gratuity for Staff

India’s National Company Law Appellate Tribunal (NCLAT) has upheld a key relief to former Jet Airways employees, ruling that their provident fund, pension and gratuity dues must be paid in full and kept outside the liquidation pool from which other creditors, including banks, will be paid, Bar and Bench reported.

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

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

Indonesia Roundup

Indonesia Posts First Trade Deficit in Six Years, Inflation Accelerates

Indonesia posted a trade deficit of USD 1.61 billion in May, its first in six years, as exports unexpectedly fell due to lower commodity shipments, while imports surged, Reuters reported via The Business Times.

The inflation rate in Southeast Asia’s biggest economy also accelerated, edging closer to the top end of the central bank’s target range.

Resource-rich Indonesia enjoyed a trade surplus every month since May 2020, but the gap had been narrowing in the months prior to May amid higher fuel imports, a weaker rupiah and softening exports.

• 🛜 Southeast Asia Radar #3

• 📒 Quick Take: Indonesia’s Rating Leak

• 📒 Quick Take: Jakarta’s Third Rail

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

Jardine Matheson Taps Ex-Indonesian Fund CIO as Country Head

Jardine Matheson Holdings has hired Christopher Ganis, formerly chief investment officer at sovereign wealth fund Indonesia Investment Authority, as Indonesia country head, Bloomberg reported, citing people familiar with the matter.

Ganis, who also holds the title as managing director for investments, starts on 1 July and will lead the Hong Kong conglomerate’s activities in Indonesia. Based in Jakarta, he will report to chief executive officer Lincoln Pan.

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

Vietnam Unveils $2.5 Trillion, 100-Year Blueprint for Hanoi

Vietnam has officially unveiled a 100-year vision and master plan for Hanoi, as it steps up efforts to attract investment and deepen partnerships with the private sector, CNA reported.

The USD 2.5 trillion blueprint covers major infrastructure and transport projects. It also includes investing in healthcare, elderly care and smart technologies to support the capital’s long-term growth.

• 📒 Quick Take: Vietnam’s Green Shoots

• 💼 Brief Take: Vietnam’s Risk Zone

DBS Completes Inaugural Synthetic Securitisation Transaction

Singapore’s DBS announced the completion of its inaugural synthetic securitisation transaction, referencing a USD 1 billion diversified portfolio of corporate loans, according to its press release. This is the first such transaction undertaken by a Singapore bank.

Synthetic securitisations, also known as Significant Risk Transfer (SRT) transactions, are used by global banks as part of capital and risk management. Through this transaction, investors bear a share of the referenced portfolio’s credit risk, enabling them to gain exposure to loan portfolios underwritten by the bank.

This allows DBS to reduce the regulatory capital held against these assets and redeploy it towards new lending and growth opportunities, while continuing to own and service the underlying loans, according to the press release.

New World, Ares Cut Hong Kong Office Tower Unit Prices Up to 57%

A commercial complex in an industrial neighborhood of Hong Kong has become the latest flashpoint in a commercial property market struggling with pockets of weakness, even as the broader real estate market rebounds, Bloomberg reported.

Investment firm Ares Management and developer New World Development, which co-own the office-and-retail tower 83 Wing Hong Street, have recently dropped prices to offload some units in the development. They cut some asking prices including discounts and rebates by as much as about 57% from when the project launched in 2024.

• 💼 Brief Take: Two Sides of Hong Kong’s Property Coin

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

Indonesia Roundup

Indonesians Sour on Prabowo Subianto as Currency Weakens

Small protests, mainly led by university students, have been held across the country in recent weeks over Prabowo’s stewardship of the economy, The Financial Times reported.

The rupiah has tumbled 7% this year to trade around all-time lows – below even levels during the Asian financial crisis in the 1990s.

The foreign exchange weakness is also being acutely felt by poorer Indonesians despite social assistance schemes such as cash aid at a time when job creation has also been weak.

Acrostics Asia wrote on 23 June 2026:

🛜 Southeast Asia Radar #2

The president was likely forced to rein in his flagship free lunch scheme because the market outflows and the rupiah’s drop to record lows risked hurting the lower-to-middle income class, which is a key voter base for the former general.

Indonesia Capital Flight Caps Most-Profitable Bank’s Wealth Push

Indonesia’s biggest non-state bank said capital flight has hampered efforts to expand its wealth management business, underscoring how an erosion of investor confidence is hindering the private sector in Southeast Asia’s largest economy, Bloomberg reported.

Bank Central Asia has seen a significant increase in customers transferring money abroad this year, Chief Executive Officer Hendra Lembong said in an interview from Jakarta this month. The outflow was likely “a reflection of the situation” in the country, which needs to improve, said Lembong.

Acrostics Asia wrote on 19 April 2025:

📒 Quick Take: Indonesian Outflows

Capital started flowing out of the country partly due to fears of being caught on the wrong side of the power consolidation around the president’s camp. Some were surprised by the speed and scale of the operation, a friend said, noting that questions over whether there’s a grand design or not had added to the uncertainty.

Acrostics Asia also noted on 23 May 2026:

🛜 Indonesia Radar #1

Wealthy Indonesians already accumulated significant assets or investments in neighbouring Singapore, so they have been diversifying to offshore destinations such as the Middle East, the UK, mainland China and Hong Kong, according to bankers familiar with the matter.

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

Shapoorji Refinancing Delays Spur Some Bondholders to Seek Exit

Some bondholders of Shapoorji Pallonji Group, India’s largest private credit borrower, are attempting to sell debt linked to one of its units as prolonged refinancing talks test investor patience, Bloomberg reported, citing people familiar with the matter.

Traders in Singapore and Hong Kong have been offering the so-called non-convertible debentures, a type of private credit in India, of subsidiary Goswami Infratech at about 90% of par in the past two weeks, although it wasn’t immediately clear whether any trades were executed.

• 📑 3 India Headlines #2

• 💼 Brief Take: Keeping the SP Dream Alive

• 💼 Brief Take: Asia Private Credit’s Growing Pains

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

Development Bank of Mongolia Returns to International Capital Markets with USD 500 Million Bond

The Development Bank of Mongolia (DBM) has returned to the international public bond market with a USD 500 million five-year bond, according to Capital Markets Mongolia (CMM).

DBM tightened pricing by 40 basis points from initial guidance, allowing the bond to price with a 6.90% coupon and a 7.20% re-offer yield. “More importantly, the transaction established the tightest spread ever achieved by a Mongolian non-sovereign issuer relative to the sovereign yield curve,” CMM wrote.

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

• 📒 Quick Take: Mongolia’s Financing Window

• 💼 Brief Take: Mongolia’s Bond Gallop

Mainland Chinese Mining Executive Buys Hong Kong Trophy Home at $28 Million Receivership Sale

The president of a Shanghai-listed mining company has been identified as the buyer of a luxury house in Hong Kong’s Stanley district, paying HKD 220 million (USD 28 million) for a receiver-owned property, as lenders accelerate the disposal of distressed assets, South China Morning Post reported.

Many veteran investors built fortunes through investments in shops and commercial buildings, often using luxury homes as collateral to support broader borrowing. As commercial property values slumped and refinancing became more difficult, some of those homes were drawn into receivership.

At the same time, the return of mainland buyers following the removal of all residential cooling measures in 2024 has provided banks with a growing pool of potential buyers.

• 💼 Brief Take: Two Sides of Hong Kong’s Property Coin

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

Indonesia Roundup

Prabowo Risks Prompt Global Banks to Pull Cash Out of Indonesia

The three biggest foreign banks in Indonesia have shipped around $640 million of their earnings out of Southeast Asia’s largest economy since 2024 as they pare exposure amid President Prabowo Subianto’s increasingly state-focused economic policies, Bloomberg reported.

The Indonesian units of Citigroup, Standard Chartered and HSBC remitted a total of IDR 11.5 trillion ($640 million) over the last two years, slightly exceeding their combined profits for the period, according to an analysis of their financial statements.

One of the earliest flashpoints for foreign banks came when Danantara sought commitments for a $10 billion loan facility. During a meeting in early 2025 with 10 banks, Danantara Chief Investment Officer Pandu Sjahrir encouraged each lender to contribute as much as $1 billion to the package as a show of support for Indonesia and the sovereign wealth fund, Bloomberg reported, citing people familiar with the discussions.

• Acrostics Asia: Live Deal Intelligence

• 💼 Brief Take: Danantara’s International Bond Splash

• 👟 Walk the Talk: Danantara’s War Chest

Firmus Plans Massive Indonesian Expansion

Firmus will embark on a major new data centre project on an Indonesian island off the coast of Singapore that the company says could bring it $43 billion in revenue in its first six years of operation alone, AFR reported.

The development in Batam is backed by Nvidia, the American chipmaker that has become central to a growing artificial intelligence ecosystem, and comes amid greater scrutiny on Firmus’ projects from governments and communities in Australia, according to AFR.

• ☀️ Bright Spot #19: Mega Deals

• ☀️ Bright Spot #18: Data Centre Boom

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

Acrostics Asia has kicked off its podcast series that hosts conversations with leading practitioners on the trends shaping Asian sovereigns, private credit and restructurings. Designed for busy professionals, it provides insights in concise 20-minute episodes.

🎙️ Acrostics Asia Podcast #1: 12 Questions on Asia Private Capital with Jacqueline Chan (24 June 2026)

Jacqueline Chan, a Partner at Milbank LLP, explores 12 questions on Asia private capital, covering the state of play across the region, evolving deal structures and trends. The full episode is available on Acrostics Asia’s website, YouTube, Spotify and Apple Podcasts, with short clips on LinkedIn.

🛜 Southeast Asia Radar #2 (23 June 2026)

Malaysian government agency Felda Group’s spat with farmers and vendors after shutting down its dairy business is the latest in its mis-steps over the years. These include an expensive plantation deal with Indonesian conglomerate Rajawali Group that it’s been struggling to unwind.

In Indonesia, President Prabowo Subianto was likely forced to rein in his flagship free school lunch program because the market outflows and the rupiah’s drop to record lows risked hurting the lower-to-middle income class, which is a key voter base for the former general.

Around the Region

• Vietnam: Vingroup, Vietcap Securities

• Singapore: Singapore Airlines, Keppel

• Philippines: Inflationary pressures remain strong

📑 3 India Headlines #2 (27 June 2026)

• Vedanta’s Bond Deal: A subsidiary of UK-based Vedanta Resources has accepted bids worth USD 1.75 billion for a three-tranche issuance of dollar bonds, Reuters reported. I wrote that in the eyes of some buyside investors, the Indian group had passed a trial by fire when it secured a crucial USD 1.25 billion private credit facility in late 2023, which reopened its access to the debt markets. Vedanta managed to tighten the pricing for its latest offshore bond deal and reduce its funding costs.

• Private Credit Squeeze: Intensifying competition in India’s private credit market is compressing yields for large, plain-vanilla sponsor-backed deals, but mid-market transactions continue to offer better pricing power, Moneycontrol reported, citing a Lighthouse Canton executive.

• SP Group’s Bond Extension: Shapoorji Pallonji (SP) Group has offered bondholders a 30-basis point fee in exchange for approving another extension on the debt owed by its unit, Bloomberg reported. I wrote on 8 May 2026 that some creditors who have built a sizeable exposure wouldn’t want the conglomerate to default before they are at least partially repaid, but the cost of buying time is getting higher and higher.

🧱 Building Notes

“Move your brains,” my father used to say in Mandarin to his three children if we encountered an obstacle when we were growing up.

He didn’t accept no as an answer and would always find alternative routes around roadblocks that emerged while he built his business. Watching my father lift himself from humble beginnings to give his family a better life, I learned that it’s possible to build something out of nothing.

When I started building Acrostics Asia last year, some skeptics wondered what I could possibly achieve without massive resources.

My focus first and foremost is quality, as one report that truly breaks news or connects the dots can help readers to figure out the game more than a dozen fragmentary articles. I also believe that no amount of marketing can save a bad product, but a good product can travel through word of mouth.

Second, my approach with Acrostics Asia is that it’s not everything to everybody. Instead, I aim to be useful to a group of people over and over – knowing them well enough that I can anticipate what’s relevant to them and answer the questions that they may have.

Third, I want Acrostics Asia to be a place to talk things out and make sense of complex situations together. Throughout the years covering Asian credit, some of the best lessons I learned were not from reading restructuring proposals or court documents – they came from real-life practitioners.

This is why I launched the Acrostics Asia Podcast to host conversations with leading practitioners across Asian sovereigns, private credit and restructurings. I also embraced the multimedia format because news consumers are increasingly moving towards visuals, not just text.

Acrostics Asia may well be a way for me to put into practice my father’s advice of ‘moving my brains’.

Belatedly, Happy Fathers’ Day to the fathers out there!

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

Evergrande Property Services Stake Sale Collapses

Talks to sell a controlling stake in Evergrande Property Services Group have collapsed after liquidators of its bankrupt parent, China Evergrande Group, failed to reach a formal agreement with a prospective buyer, Caixin reported.

Liquidators have been trying to sell the 51.02% stake since September 2025. After a screening process, they entered a 30-working-day exclusive negotiation period with a selected bidder on 14 April.

Caixin learned at the time that the bidder was Guangdong Provincial Tourism Holdings, a state-owned enterprise, and that the acquisition had initially been coordinated by local government authorities. The collapse of the latest deal coincided with a leadership change at Guangdong Provincial Tourism Holdings.

• 💼 Brief Take: China’s Debt Fabric

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Private Credit Competition Squeezing Top-End Spreads in India

Intensifying competition in India’s private credit market is compressing yields for large, plain-vanilla sponsor-backed deals, but mid-market transactions continue to offer better pricing power, Moneycontrol reported, citing Lighthouse Canton’s managing director and business head (India Alternatives, Credit & Hybrid Strategies) Pranob Gupta.

Gupta said the spike in the number of private credit funds chasing Indian deals has made the market more competitive, especially at the top where large, sponsor-backed deals tend to attract multiple lenders.

“Competition is real and growing,” Gupta said, adding that spread compression is most visible in plain-vanilla paper involving large names. In the mid-market, however, spreads have held up because these transactions require stronger origination capabilities, bespoke structuring and deeper monitoring, according to Gupta.

• 🛜 India Radar #1

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Moody’s Upgrades Uzbekistan’s Rating to Ba2

Moody’s has upgraded Uzbekistan’s long-term issuer and senior unsecured debt ratings to Ba2 from Ba3, Xinhua reported.

The rating agency attributed the upgrade to the steady strengthening of Uzbekistan’s institutional and economic frameworks, improved fiscal indicators, and the rising efficacy of its policy implementation.

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

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Indonesia Roundup

Indonesia Set to Boost Cash Placed in State Banks to $22 Billion

The Indonesian government will put an estimated IDR 400 trillion ($22 billion) of its standby funds in state-owned lenders to keep on fueling economic growth, Bloomberg reported.

The government currently keeps some IDR 200 trillion in long-term placements in state banks, Finance Minister Purbaya Yudhi Sadewa said in a briefing in Jakarta. They had reduced it several weeks ago, but it tightened liquidity.

Under President Prabowo Subianto’s instructions, the ministry transferred the money back to state lenders to “keep the economy running” and potentially drive loan growth to as high as 15% this year, the finance chief said.

• 📒 Quick Take: Indonesian State Capitalism

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Indonesia Delays $1 Billion Panda Bond Sale as Chinese Demand Builds

Indonesia has postponed the launch of its inaugural Panda Bond from early July to the end of the month after strong interest from Chinese investors prompted requests for additional time to complete internal investment approvals, Jakarta Globe reported.

Finance Minister Purbaya Yudhi Sadewa said that several Chinese asset managers and major banks needed more time to submit investment proposals to their respective investment committees before participating in the bond offering.

• ☀️ Bright Spot #19: Asia Bond Wave

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Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.

China Auditor Exposes Local Governments Faking Debt Cleanups

Some local governments in China have used deceptive tactics to mask billions of yuan in hidden debt, undermining Beijing’s sweeping campaign to defuse financial risks, Caixin reported, citing the country’s top auditor.

Despite a mandate to eliminate off-balance-sheet borrowing by mid-2027, local governments continued to accrue hidden liabilities, according to an annual report released by the National Audit Office.

The office said authorities in multiple provinces artificially reduced their hidden debt balances – in some cases by simply deleting records from the debt management system. Some local government financing vehicles falsely claimed to have resolved their debts.

• 💼 Brief Take: China’s Debt Fabric

• 📚 Acrostics Anatomy: China’s Double Helix

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

India’s Shapoorji Pallonji Group Seeks Fresh Bond Extension as Refinancing Drags

India’s Shapoorji Pallonji Group has offered bondholders a 30-basis point fee in exchange for approving another extension on debt owed by its unit, Bloomberg reported, citing people familiar with the matter.

The group is seeking consent to allow Goswami Infratech to push back repayment of 143 billion rupees ($1.5 billion) worth of zero-coupon bonds by at least a month beyond their 30 June maturity date.

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Vietnam Steers Funding to Vingroup, Sun Group, Masterise Megaprojects

Vietnam’s central bank has opened a special financing channel for 18 projects by Vingroup, Sun Group and Masterise, allowing banks to exclude new lending to those schemes from their annual credit-growth quotas, The Business Times reported.

The move gives banks more room to fund state-priority projects without formally lifting the system-wide credit target, which remains at 15% for this year.

• 📒 Quick Take: Vietnam’s Green Shoots

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Indonesia Roundup

Indonesia Weighs $2 Billion Cut to Prabowo’s Signature Free Meals Program

Indonesia is preparing to ​scale back President Prabowo Subianto's flagship free meals program, with officials weighing another budget cut of more than $2 billion along with reductions in kitchens and beneficiaries, Reuters reported, citing ‌two sources familiar with the matter and an internal presentation.

Two sources familiar with the plans told Reuters the National Nutrition Agency (NNA), which runs the program, is targeting a reduction of at least 15% from its 268 trillion rupiah ($16 billion) budget this year – equivalent to about ​40 trillion rupiah – after identifying inefficiencies. One of them said the cut could be 50 trillion rupiah.

Acrostics Asia wrote on 1 March 2026:

📒 Quick Take: Jakarta’s Third Rail

Indonesia’s fiscal deficit ceiling of 3% of GDP is like the “third rail” because visibly crossing it may cause some investors to jump off the train. Indonesia has built its reserves over the years to withstand capital outflows, but a stampede for the exit can erode these buffers faster than they can be replenished.

• 🛜 Southeast Asia Radar #2

• 🛜 Southeast Asia Radar #1

• 📒 Quick Take: Jakarta’s Third Rail

Firms Steer Danantara Indonesia’s USD 5 Billion MTN, USD 1.5 Billion Bonds

Linklaters, Clifford Chance and Hiswara Bunjamin & Tandjung, the Indonesian arm of Herbert Smith Freehills Kramer, have advised on Danantara Indonesia’s debut USD 5 billion global medium-term note (MTN) program and inaugural USD 1.5 billion bond issuance, Asia Business Law Journal reported.

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• 🛜 Indonesia Radar #2

Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.