Asia Roundup
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.
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.
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.”
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.
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