Asia Roundup
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.
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.
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.
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.
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.