Asia Roundup
Asia Steps Up Currency Defense as Korea, Indonesia Vow Action
Asian authorities are ramping up their currency defense as high energy costs and bets that the Federal Reserve will raise interest rates pressure them, Bloomberg reported.
Authorities in countries such as South Korea, Indonesia, and Japan are intensifying interventions to stabilize their currencies, which have dropped to record or near-record lows.
Vedanta Says No Penalty, Restrictions Imposed After Enforcement Directorate Searches
Vedanta Ltd said India’s Enforcement Directorate (ED) has not imposed any penalty, restriction or adverse direction following searches conducted at its premises, adding that there has been no impact on its business operations, The Economic Times reported.
The clarification comes two days after officials from the ED visited some offices of Vedanta and its subsidiary Hindustan Zinc. The ED had conducted searches at Vedanta Group locations as part of a probe under foreign exchange laws.
Vietnam’s Novaland Seeks Creditor Waiver on $300 Million Offshore Bond
Embattled Vietnamese property developer Novaland is seeking a waiver on upcoming payment obligations for its $300 million international bond package, as the company pushes to restructure its offshore debts, The Investor reported.
The developer needs the approval of bondholders representing at least 66% of the total outstanding principal to pass the waiver resolution. The voting deadline for international creditors is set for 4 June 2026, London time.
The waiver request follows a late-April AGM where Novaland shareholders approved a baseline restructuring framework for the offshore notes. The plan outlined a deferral of imminent interest payments and a one-year extension on the ultimate maturity of the bonds, according to The Investor.
Indonesia Roundup
Indonesia Passes Bill Expanding Central Bank Role to Spur Growth
Indonesia’s parliament passed sweeping legislation that doubles down on Bank Indonesia's role to support growth, while empowering lawmakers to make binding recommendations for independent financial regulators and the central bank, Reuters reported via CNA.
The bill, backed a parliament overwhelmingly controlled by President Prabowo Subianto’s coalition, has not been made public, but some elements were discussed at a hearing on Wednesday, including legislators evaluating independent bodies and making binding recommendations for them.
Moody’s Negative Outlook Casts Shadow on Danantara, Analyst Says
Moody’s assigned an inaugural investment-grade rating of Baa2 to Danantara Investment Management (DIM), but the accompanying negative outlook has shifted investor attention from the sovereign wealth fund’s creditworthiness to concerns over Indonesia’s broader economic outlook, Jakarta Globe reported.
“At first glance, the Baa2 rating is supportive. However, the more important message lies in the strong linkage between Danantara’s credit profile and Indonesia’s sovereign risk,” Kiwoom Sekuritas Indonesia Head of Research Liza Camelia Suryanata wrote in a research note.
Acrostics Asia is an independent credit intelligence provider that delivers forward-looking insights across Asian sovereigns, private credit and restructurings.