Asia Roundup
Hong Kong Bad-Debt Bankers Ramp Up Fire Sales, Liquidations
A small group of bankers in Hong Kong tasked with cleaning up the city’s unprecedented pile of bad debt is done playing nice, Bloomberg reported.
They number under 200 people, less than 0.07% of the city’s finance workforce. But these so-called special asset bankers are up against a large and increasingly urgent task: cutting a HKD 200 billion (USD 25.5 billion) pile of soured debt that’s pushed the city’s distressed loan ratio to a two-decade high.
Working behind the scenes, the specialists have increasingly been turning to last-resort tactics of selling collateral or pushing borrowers into liquidation, often due to losses on Hong Kong commercial real estate.
Moody’s Upgrades Vietnam’s MBBank
Moody’s has upgraded the local currency and foreign currency long-term deposit and issuer ratings for Military Commercial Joint Stock Bank (MBBank) from Ba3 to Ba2, aligning with Vietnam’s sovereign rating, The Investor reported.
The upgrade is underpinned by the bank’s above peer-average profitability, supported by improving deposit franchise, according to Moody’s.
DBS Sells Private Credit Fund Yielding Up to 20% to Rich Clients
Singapore-based firm Granite Asia has engaged the private banking arm of DBS Group Holding to raise additional capital for its first private credit vehicle, Bloomberg reported, citing people familiar with the matter.
Access to the fund, which reached its first close last year, was recently made available to wealthy investors via DBS Private Bank. It targets an internal rate of return of about 16% to 20% per year, with investor cash yields of about 8% to 10%.
MinterEllison Advises Star Entertainment Group on Debt Refinancing
MinterEllison advised Australia’s Star Entertainment Group on its binding credit facility agreement with funds associated with WhiteHawk Capital Partners, providing for the full refinancing of the group’s debt, according to the law firm’s LinkedIn post.
The refinancing comprises a three-year facility of up to USD 390 million (approximately AUD 540 million) and replaces the group’s previous AUD 400 million syndicated facility agreement.
Indonesia Roundup
Indonesia Delays Mining Royalty Hikes But Policy Uncertainty Weighs on Sector
Indonesia has delayed plans to increase royalties on several mineral commodities as the government seeks a policy framework that can boost state revenue without undermining the competitiveness of the mining industry, The Business Times reported.
Energy and Mineral Resources Minister Bahlil Lahadalia said that authorities are still gathering feedback from mining companies before finalising the proposed changes.
Finance Minister Rules Out Another Tax Amnesty in Indonesia
Finance Minister Purbaya Yudhi Sadewa said Indonesia would not introduce another tax amnesty program, ruling out further pardons for tax evaders, IDNFinancials reported.
According to Purbaya, the program – which was held twice during the administration of former president Joko Widodo – had instead created risks for the finance ministry, particularly for tax officials.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.