Belatedly Happy Vesak Day to those who celebrated it!
Asia Roundup
As China’s Hidden Local Debts Shrink, a New Challenge Emerges
The more difficult task of tackling the murkier and more sprawling operational debt held by thousands of local government financing vehicles (LGFVs) is running into complications, partly in the form of high-interest, non-compliant debt that banks are reluctant to touch, Caixin reported.
This stalemate is contributing to a growing liquidity strain for LGFVs, which can roll over their principal but are increasingly struggling to pay the interest, raising concerns about a build-up of default risks.
Blackstone Raises its Largest Asia Private Equity Fund at $13.1 Billion
Blackstone announced the final close of Blackstone Capital Partners Asia III at $13.1 billion, exceeding its $10 billion target and marking the firm’s largest private equity fundraise in the region. The close represents more than double the amount of capital raised for its predecessor vehicle, according to its press release.
India’s SP Group to Complete Dual Tranche Debt Sale by Mid-June, Sources Say
India’s Goswami Infratech, a Shapoorji Pallonji (SP) Group unit, is set to complete its large fundraising plan by mid-June, ahead of a month-end deadline to refinance nearly $2.5 billion in debt, Reuters reported, citing two sources familiar with the matter.
Goswami Infratech has now secured commitments from at least five foreign and domestic investors to subscribe to a planned rupee-bond issue, while the group fully secured commitments from investors for its dollar tranche.
The company will raise around INR 143 billion ($1.51 billion) through a three-year zero-coupon rupee bond issue, arranged by Deutsche Bank. It will likely pay a yield of 18.95%, with investors mostly consisting of existing ones rolling over their investments.
Indonesia Roundup
Indonesian Business Groups Call for Clarity About New Commodity Export Rules
Business groups in Indonesia called on the government to issue technical guidance for its plan to centralise exports and retain export proceeds in state banks, Reuters reported, citing their joint statement.
The Indonesian Employers Association, together with associations of miners, coal miners, nickel smelters and palm oil producers, said they supported the new rules, but hoped the government would work with the private sector on their implementation.
Singapore High Court Dismisses Indonesian Fugitive Paulus Tannos’ Bid to Challenge Extradition Process
Singapore’s High Court has dismissed an application by Indonesian businessman Paulus Tannos to challenge a decision that set in motion proceedings seeking his extradition to Indonesia over his alleged role in a major corruption case, CNA reported.
In a judgment issued on 29 May, Justice Aidan Xu ruled that Tannos, 71, had failed to establish a sufficient basis to allow a judicial review of a decision by Singapore’s Law Minister to proceed with Indonesia’s extradition request.
Tannos, a Singapore permanent resident, is wanted by Indonesia’s Corruption Eradication Commission (KPK) for his alleged role in a corruption scheme linked to the country’s electronic identity card project, or e-KTP project.
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