Asia Roundup
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.
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.
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.
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.
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.
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