Asia Roundup
China’s Crackdown Rattles the World’s Top Offshore Wealth Hub
The renewed clampdown by regulators to limit the billions flowing out of China is casting a pall on Hong Kong just as the city was emerging from years of pandemic stagnation, Bloomberg reported.
At stake is hundreds of billions of dollars of mainland wealth that has bolstered everything from luxury spending and real estate to the stock market.
ByteDance Seeks $20 Billion in Its Largest-Ever Global Loan
ByteDance, the developer of TikTok, is in preliminary talks with banks for a borrowing of about $20 billion, in what would be the firm’s largest offshore loan yet at a time when it’s boosting investments in artificial intelligence, Bloomberg reported, citing people familiar with the matter.
The Beijing-based social media conglomerate has approached banks for the new-money loan, which could carry a three-year tenor with the option to extend to as long as five years.
Vinpearl Attracts $255 Million from International Investors
Vietnam’s Vinpearl announced the completion of a strategic investment of USD 255 million from SeaTown Private Credit Fund III, an investment fund managed by SeaTown Holdings International, together with the Oman Investment Authority and the Vietnam-Oman Investment Fund, according to its press release.
The investment was made through convertible dividend preference shares (CDPS) issued by Vinpearl. Jefferies was the exclusive financial advisor for Vinpearl in this transaction.
Indonesia Roundup
Indonesia’s Danantara Bonds Receive Special Protection Under New Financial Law
Indonesia’s government has introduced sweeping legal and tax incentives for bonds issued by state-backed investment entity Danantara, Jakarta Globe reported.
The incentives, embedded in a revision to the Financial Sector Development and Strengthening Law passed on 4 June, include legal immunity for specific Danantara debt instruments as well as tax exemptions and treatment equivalent to tax amnesty participation for investors.
The provisions apply to special bonds issued by Danantara, including Patriot Bonds and Merah Putih Bonds, making them significantly more privileged than conventional government and corporate debt instruments.
Indonesia Clings to Emerging Markets Mantle as MSCI Extends Review to November
Indonesia held on to its emerging markets status, for now, as global index provider MSCI extended its review to November to assess the slate of measures rolled out by Jakarta, leaving the market facing prolonged uncertainty, Reuters reported via CNA.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.