Asia Roundup
Hong Kong’s Commercial Property Slump Enters New Phase as Lenders Take Tougher Stance
The recent decision by mainland developer Yuzhou Group to sell office space in Central at a substantial loss to repay debt underscores a new reality in Hong Kong’s commercial property market: Banks are increasingly focused on controlling losses rather than delaying them, South China Morning Post reported.
For much of the property downturn, banks were willing to extend maturities and restructure loans in the hope that market recovery would restore collateral value.
But stricter capital requirements, tougher regulatory treatment of troubled loans and growing scrutiny from ratings agencies have increased the cost of carrying distressed commercial property exposure.
Acrostics Asia wrote on 13 May 2026:
💼 Brief Take: Two Sides of Hong Kong’s Property Coin
Some loans were structured through special purpose vehicles (SPVs), limiting the recourse that the banks can pursue against the sponsors in the event of a default. While sponsors often request an extension or a restructuring, the banks may decide to enforce the loans during a market rebound rather than kicking the can down the road.
India’s HDFC Bank Prices $750 Million Bond in Largest Offshore Deal by Lenders Since 2023
India’s largest private lender, HDFC Bank, has accepted bids worth $750 million for its planned dollar bonds, capitalising on the central bank’s subsidised hedging window for overseas borrowings, Reuters reported, citing three merchant bankers.
The deal is the largest by an Indian lender since the State Bank of India (SBI)’s $750 million five-year bond sale in May 2023 and comes as SBI and Bank of Baroda line up similar overseas debt sales.
Malaysia’s Felda Group Shuts Down Dairy Business
Malaysian government agency Felda Group has shut down its dairy business, FGV Dairy Farm, which collectively owed RM 4 million (USD 966,651) to 112 farmers and vendors, The Edge reported.
While the sum is likely to be “a chump change” to Felda, some of the affected farmers and vendors are now seeking legal action, according to The Edge.
This came as Bank Pertanian Malaysia (Agrobank) reportedly plans to auction off FGV Dairy Farm’s assets, including a farm and other infrastructure, to recover RM 10.3 million (USD 2.5 million).
Indonesia Roundup
Prabowo Taps Danantara to Drive Agenda, Testing Fund’s Capacity
A rapid expansion of Indonesian sovereign wealth fund Danantara’s mandate is entrenching its role as a key vehicle for President Prabowo Subianto’s nationalist agenda, even as doubts grow over its execution capacity and political independence, Reuters reported on 22 June 2026.
A Danantara unit raised $1.5 billion in its debut USD bond sale. The fund said the oversubscribed sale reflected strong investor confidence and should bolster domestic confidence in its framework.
A banking source with knowledge of the issuance, however, told Reuters that investors largely bought the bonds because they offered higher returns than Indonesian government debt while carrying similar exposure to the state, rather than as a judgment on Danantara’s operational capacity.
Three months before Danantara was officially launched, Acrostics Asia wrote on 11 November 2024:
📒 Quick Take: Deciphering Danantara
The brains behind Danantara seem to be going for a multiplier effect by leveraging up the combined SOE assets…Danantara can theoretically borrow more to support the president’s spending plan. Incurring debt at the corporate level may also be a way to get around Indonesia’s budget deficit ceiling of 3% of GDP.
Three days before Danantara sold its debut offshore notes, Acrostics Asia also wrote on 9 June 2026:
📒 Quick Take: Danantara’s Bond Roadshow
Despite some concerns about the intended allocation of the bond proceeds and where the issuer, Danantara Investment Management (DIM), sits in the overall structure of the fund, it’s ultimately seen in the buyside community as a quasi-sovereign that should have the support of the Indonesian government.
Daniel Ginting to Take Up Strategic Senior Role at Danantara
After 16 years leading Ginting & Reksodiputro (G&R) in association with A&O Shearman, Daniel Ginting will be stepping down from the partnership to take up a strategic senior role at Danantara, according to the Indonesian law firm’s LinkedIn post.
Daniel co-founded G&R in 2010 together with Harun Reksodiputro, who will now succeed him as managing partner.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.