Asia Roundup
Hong Kong Airport Taps Local Debt Boom for $1.9 Billion Plan
Hong Kong’s airport operator plans to raise at least HKD 15 billion (USD 1.9 billion) from its only public bond sale this year, adding to a surge in debt sales denominated in the city’s currency, Bloomberg reported, citing people familiar with the matter.
Airport Authority Hong Kong has hired investment banks for the issuance and plans to price the multi‑tranche deal as early as Tuesday.
The offering highlights the rising appeal of public bonds denominated in Hong Kong dollars, a market long dominated by private placements, as geopolitical tensions and the currency’s peg to the US dollar boost investor demand.
Sun Pharma Secures Bridge Loan for $12 Billion Organon Purchase
Sun Pharmaceutical Industries has lined up a short-term loan to help finance its USD 12 billion acquisition of New York-listed healthcare company Organon & Co, Bloomberg reported, citing people familiar with the transaction.
At least three banks – Mitsubishi UFJ Financial Group, JPMorgan Chase and Citigroup – have committed to provide the funding, though the final size may change as the deal takes shape. The bridge facility, if drawn, may run for 12-18 months.
Padini Says 21 Bank Accounts Frozen Amid MACC Probe
Padini Holdings said 21 bank accounts belonging to the company and several subsidiaries have been frozen under Section 44(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, The Star reported.
The Malaysian fashion retailer has engaged external legal counsel and is taking necessary steps, including seeking appropriate relief to unfreeze the affected accounts.
Indonesia Roundup
“I Wasn’t Serious About Malacca Tax,” Indonesia’s Finance Minister Says
Finance Minister Purbaya Yudhi Sadewa said that he wasn’t serious when he made a remark that Indonesia would slap levies on ships transiting the Malacca Strait, Jakarta Globe reported. He added that he was aware such a levy would contravene international maritime law.
The decades-old UNCLOS – the maritime law that grants Indonesia its archipelagic statehood – prohibits charges on ships only for passing through. It only allows fees for services rendered to ships, according to Jakarta Globe.
📒 Quick Take: Indonesia’s Kerfuffle
Acrostics Asia wrote on 4 February that the finance minister’s swashbuckling style may jar with the international community, who’s more used to his predecessor’s pragmatic and cautious approach. Former World Bank Managing Director Sri Mulyani Indrawati isn’t perfect, but she’s also not the type who’ll shoot first and check later.
While the president harbours an ambition to assert Indonesia on the global stage, Finance Minister Purbaya’s suggestion of imposing levies on one of the world’s busiest shipping lanes also came against the backdrop of rising fiscal pressures.
Indonesia Covers VAT on Economy Flights to Cut Airfares
The Indonesian government has issued a regulation to cover the value added tax (VAT) on economy-class domestic flight tickets, Antara reported.
The policy covers VAT on base fares and fuel surcharges, easing ticket prices for the public as airlines face higher operational costs due to surging fuel prices.
Acrostics Asia is an independent Asia credit intelligence provider that takes end-to-end ownership of its signals – from origination to production and distribution.