Asia Roundup
Tokyo Court Orders MUFG Unit to Make Up for Investor’s AT1 Bond Losses
A Japanese court ruled against Mitsubishi UFJ Morgan Stanley Securities in a damages suit filed by an individual investor over his investment in Credit Suisse bonds that lost all their value following a rescue deal in March 2023, Nikkei reported.
The Tokyo District Court ordered the broker, owned 60% by Mitsubishi UFJ Financial Group and 40% by Morgan Stanley, to pay 177 million yen (USD 1.1 million) in damages to a retail investor who bought additional tier-1 (AT1) bonds in April 2021 and November 2022.
AT1s were created after the 2008 financial crisis to enhance bank capital buffers without issuing new shares and diluting existing investors. When a financial institution fails, AT1 bonds rank lower in the order of claims than ordinary bonds. This makes them a riskier investment.
The bonds included a “viability clause” that allowed the bonds to be wiped out in value in the event of “extraordinary support” from the Swiss government. The clause was triggered on 19 March 2023, when Swiss authorities stepped in to organize a rescue merger between Credit Suisse and UBS, wiping out USD 17 billion in Credit Suisse bonds.
Food Giant Wilmar Hit by $150 Million Loss From Pakistan Company
Acrostics Asia flagged on 26 February 2026 that Singapore-based agribusiness group Wilmar International had discovered “liquidity issues” and made provisions related to its associated company in Pakistan.
Bloomberg reported on 2 March that Wilmar had booked a USD 150 million loss tied to its investment in Pakistan food maker Unity Foods.
“During the course of 2025, Wilmar became aware that Unity Foods Limited was experiencing difficulties servicing certain bank facilities,” Wilmar told Bloomberg. “This was unanticipated, as the company’s most recently published financial statements indicated profitability and reported material liquid assets.”
China’s Biggest Tech Bond Issuer This Year Is a Dairy Maker
China’s efforts to fuel tech sector growth through an onshore bond program targeting innovation have produced an unexpected beneficiary: Asia’s largest dairy producer.
Inner Mongolia Yili Industrial Group, a northern Chinese maker of milk and dairy products, has issued a total of CNY 45 billion (USD 6.5 billion) of technology and innovation bonds this year, eclipsing such debt sales from actual tech firms, and making it the largest issuer for the period under the program, Bloomberg reported.
One advantage of issuing bonds through the tech and innovation program is that companies have fewer regulatory hoops to jump through to get approval for debt sales. That’s made it attractive to a wide range of firms, with the majority being state-owned entities, or from traditional sectors such as coal and steel or utilities.
Vingroup Plans $350 Million Bond Sale with Vinpearl Equity Option
Vingroup said it plans to raise up to USD 350 million through an international bond offering that includes an option for investors to receive shares in its hospitality arm Vinpearl, The Investor reported.
The five-year notes will carry a maximum coupon of 5.75% a year and bondholders will have the option to receive shares in Vinpearl. The planned deal follows a USD 325 million bond issuance in late 2025 by the group controlled by billionaire Pham Nhat Vuong.
Indonesia Roundup
Indonesia, India Intervene to Support Currencies Amid Iran War
Central banks in Indonesia and India intervened in foreign exchange markets to cushion the impact of higher oil prices and a stronger dollar amid the military conflict in the Middle East, Bloomberg reported.
Higher oil prices would pose further fiscal challenges to Indonesia at a time when it is receiving additional scrutiny from global investors and credit rating agencies, analysts at Barclays wrote in a note.
Garuda Indonesia, Malaysia Airlines Suspend Flights between Several Middle East Destinations
Garuda Indonesia has temporarily suspended flights to and from Doha “until further notice”, the company said in a statement, following US-Israel airstrikes and Iran’s retaliation, AFP reported via CNA.
On Sunday, Malaysia’s national carrier Malaysia Airlines also announced it had suspended all flights to and from Doha, and Saudi Arabia’s Jeddah and Madinah until 4 March, “following continued closure of airspace in parts of the Middle East amid escalating regional security developments”.
Indonesia Court Jails Ex-CEOs of Pertamina Units
An Indonesian court has jailed nine people in a major corruption case involving subsidiaries of state energy firm Pertamina, including two former chief executives of its units, Reuters reported via CNA.
The case, which centres on alleged illegal leasing of a fuel terminal and illegal imports of crude oil, is one of the biggest launched under the administration of President Prabowo Subianto, who has vowed to eradicate corruption.
Yoki Firnandi, former chief executive of Pertamina International Shipping, and Riva Siahaan, Pertamina Patra Niaga‘s former chief executive, each received a nine-year sentence from the panel of judges.