Asia Roundup
China Weighs Second Green Sovereign Bond Sale in London
China is considering another green sovereign bond sale in London this year as the nation looks to expand its presence in international debt markets and fund climate action, Bloomberg reported, citing people familiar with the matter.
Officials at the Ministry of Finance have been working with investment banks on a potential deal that could take place in the second half.
Central Asia Gains as War Shakes Energy Markets and Trade Routes
Central Asia, once treated as a geopolitical backwater, is seizing the spotlight as international capital flows and foreign powers compete for access to its vast mineral and energy wealth, Bloomberg reported.
While the Iran war has disrupted commodity supplies and threatened to spark global inflation, much of Central Asia looks resilient, with most economies growing about 5% to 6% and asset sales luring investors.
Keppel Begins Arbitration Against Partners in Vietnam JV
Keppel has commenced arbitration proceedings against three entities it entered into an investment with in 2016, concerning a residential and mixed-use development project in Vietnam, The Business Times reported.
Its wholly owned subsidiary Corredance is seeking declarations that the three entities are fully liable for around VND 6.9 trillion (USD 262 million) of additional land use fees that the authorities have imposed on Empire City, a joint venture established for the project that is 40% owned by Corredance.
The unit has filed a notice of arbitration with the Singapore International Arbitration Centre against Denver Power, Tien Phuoc Real Estate Joint Stock Company and Tran Thai Lands Company.
Indonesia Roundup
Fitch Flags Investor Worries Over Danantara
Fitch Ratings has outlined several investor concerns regarding sovereign wealth fund Danantara, which was also a key factor in the agency’s decision to revise Indonesia’s sovereign debt outlook from stable to negative in March 2026, Tempo reported.
“From our discussions with various investors, some potential issues that have emerged are related to governance,” Samuel Kwok, Head of International Public Finance for Asia-Pacific at Fitch Ratings, said in an interview with Tempo.
He also highlighted worries that Danantara could be used to finance government programs, particularly in situations where there is a gap between state budget capacity and expenditures.
“When there is a gap between the government’s budget and spending needs, Danantara is used to cover some of those needs,” Kwok said.
📒 Quick Take: Deciphering Danantara (11 November 2024)
Acrostics Asia flagged as early as November 2024 that the sovereign fund may essentially function as an off-balance-sheet financing vehicle to avoid breaching Indonesia’s fiscal deficit cap.
Iran War Casts Garuda Indonesia into Even More Turbulent Skies
Surging fuel and other costs threaten to send the troubled Indonesian flag carrier deeper into the red, Nikkei reported.
The Garuda Group’s market share for domestic flights fell from 43.5% in 2019 to 33% in 2024, Nikkei reported, citing securities firm Samuel Sekuritas Indonesia. It trails privately owned Lion Air Group, believed to control over 60% of the domestic market.
For international flights, Garuda’s market share fell further, to 7% from 21% over the same period, as the fleet shrank and the airline either terminated foreign routes or reduced flight frequencies.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.