Asia Roundup
Blue Owl Liquidity Curbs Fuel Fears about Private Credit Bubble
The private credit boom is facing a new test after Blue Owl Capital permanently restricted withdrawals from one of its retail-focused debt funds, CNBC reported.
Shares in Blue Owl Capital fell nearly 6% on Thursday after the private market and alternative assets manager sold USD 1.4 billion of loan assets held in three of its private debt funds.
“This is a canary in the coal mine,” Dan Rasmussen, founder and adviser at Verdad Capital told CNBC. “The private markets bubble is finally starting to burst.”
Sri Lanka to Keep Control of Flag Carrier
The Sri Lankan government will continue to operate SriLankan Airlines, as retaining ownership enables revenue from the flag carrier’s operations to be used to service long-standing debt obligations, The Morning reported.
SriLankan Airlines’ overall financial position continues to reflect losses due to historical borrowings accumulated over many years, Deputy Civil Aviation Minister Janitha Ruwan Kodithuwakku said, adding that the government has initiated a restructuring program aimed at managing these liabilities.
Singapore Court Grants Bail for Two Autobahn Directors
Two directors of Singapore vehicle leasing group Autobahn Rent A Car, Tan Boon Kee and Sanjay Kumar Rai, were granted bail on 13 February, The Straits Times reported.
Tan and Sanjay are accused of instructing a staff member to fraudulently make a false receipt from Komoco Motors, stating that the latter had sold and received full payment for 10 Hyundai Kona Hybrid vehicles. Komoco is the distributor of Hyundai cars.
Indonesia Roundup
Indonesia Secures 19% Tariff in US Trade Deal
Indonesia and the US have signed an agreement on reciprocal trade, with Washington maintaining the 19% tariff it had previously agreed for goods exported by the Southeast Asian country, Reuters reported via CNA.
Indonesian coffee, chocolate, natural rubber and spices would be tariff-free, Jakarta said in a statement, adding it may also get exemptions for nearly 1,700 other commodities, including palm oil.
Textile products from Indonesia will be subject to a 0% levy under a “Tariff-Rate Quota” mechanism that will be discussed after the signing.
Indonesia Sees $11 Billion in Share Sales for Free-Float Aim
Indonesia is bracing for share sales of around USD 11 billion to meet tougher free-float rules aimed at heading off a potential downgrade to frontier market status by MSCI, Bloomberg reported.
The Indonesia Stock Exchange estimates that 267 companies will have to lift their public shareholdings to 15%, up from the current 7.5% minimum, implying share sales worth about IDR 187 trillion (USD 11.1 billion), according to Listing Director I Gede Nyoman Yetna.
Danantara Moves Ahead to Form SOE Holding Companies
Indonesian sovereign fund Danantara is moving ahead to form the holding companies for state-owned enterprises (SOEs), CNBC Indonesia reported. The news agency has released a list of the SOE holding companies and the entities under them.