Asia Roundup
China Caps LGFV Bond Yields
A Chinese regulator has imposed a new round of rules on local government financing vehicles in the offshore bond market to control their debt risks, IFR reported.
The National Development and Reform Commission has given unofficial “window guidance” requiring LGFVs to keep the all-in yields for offshore renminbi bonds under 4% and US dollar bonds under 5%, according to two bankers.
The window guidance did not specify any tenors but deals from LGFVs are mostly under three years.
Philippine Airlines Raises $300 Million In First Bond Sale Post Bankruptcy
Philippine Airlines (PAL) – controlled by tobacco and banking tycoon Lucio Tan – has raised $300 million through the sale of five-year bonds, providing funds to help fund the flag carrier’s fleet modernization and expansion, Forbes reported.
The five-year senior unsecured guaranteed bond was priced at 7.75% and issued by wholly owned subsidiary Primero Agila, the Philippine flag carrier said in a statement. The bonds were 4.5 times oversubscribed with an order book of more than $1.4 billion.
It’s the first bond sale for PAL since emerging from Chapter 11 bankruptcy proceedings in the US in December 2021. Proceeds from the bond sale will help fund the airline’s international expansion as it seeks to increase flights into key North American hubs such as Chicago, New York, Toronto and Vancouver.
Singapore’s Temasek Hits Record Portfolio Value
Singapore state investor Temasek Holdings saw its net portfolio value climb to SGD 518 billion (USD 401 billion) for the year ended 31 March, a second straight annual record, CNBC reported.
Temasek said it sees opportunities in three areas: artificial intelligence, private credit, and what it calls “core-plus” infrastructure such as renewable and nuclear energy, energy storage, and decarbonization technologies.
Indonesia Roundup
Financial Regulator Denies Foreign Banks Are Pulling Funds From Indonesia
Indonesia’s Financial Services Authority (OJK) has rejected reports that foreign banks are withdrawing funds from the country due to concerns over government policies, saying the transfers represent routine profit repatriation rather than a loss of investor confidence, Jakarta Globe reported.
Dian Ediana Rae, OJK’s executive head of banking supervision, dismissed the claim, describing it as an exaggerated interpretation of a normal investment practice.
Latham Advises Arsari Capital on Financing and Joint Venture With Indosat Ooredoo Hutchison
Latham & Watkins has advised Arsari Group, a diversified Indonesian family-owned investment platform, on the financing and joint venture with Indosat Ooredoo Hutchison to form Infra Fiber Teknologi, an independent digital fiber infrastructure platform in Indonesia.
The transaction involved an asset transfer of over 86,000 km of Indosat’s existing fiber optic network, including backbone infrastructure, domestic submarine cables, and access networks, according to the law firm’s press release. It was financed by a combination of equity, senior, and mezzanine debt.
Acrostics Asia is an independent credit intelligence provider that connects the dots across Asian sovereigns, private credit and restructurings.