Asia Roundup
Xi’s Central Asia Outreach Pays Off With a Fundraising Blitz
A group of Kazakh bankers travelled to Hong Kong to lay the groundwork for yuan-denominated bond deals that could take place later in the year, meeting with Chinese investors and making presentations, Bloomberg reported.
Kazakhstan is planning to sell its debut yuan panda bonds as early as next month and may seek to raise the equivalent of USD 500 million, in a milestone for financial ties between China and Central Asia.
Indian Agri Lender Is Said to Enter Sovereign Bond-Linked Swaps
India’s state-run agriculture lender will start using derivatives tied to sovereign treasury bills to better manage funding costs and hedge against interest rate swings, Bloomberg reported.
The National Bank for Agriculture and Rural Development (Nabard) has received board approval to swap fixed-interest rates with floating ones linked to yields on treasury bills. The bank will start trading swaps with a tenor of three-to-12 months in the fiscal year starting April.
SMBC Says First JOLCO with Indian Airline Group Has Closed
The first Japanese Operating Lease with Call Option (JOLCO) with an Indian airline group has closed and was structured through GIFT City, according to SMBC Group’s LinkedIn post.
JOLCO financing has historically been the domain of a select group of established global airlines. The deal with IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC Pvt Ltd, to finance two Airbus A320 planes marked India’s entry into that space, channeling Japanese equity into one of aviation’s most dynamic growth markets, according to SMBC’s post.
Indonesia Roundup
Indonesian Stocks, Rupiah Slump as Iran Conflict Escalates
Indonesia’s stocks and currency slid toward new bearish milestones as rising Middle East conflict dragged on regional assets, compounding concerns over the country’s investability and policy direction, Bloomberg reported.
The war is the latest blow to the nation’s assets as investors rush to safe havens, prompting market intervention by Indonesia’s central bank. Rising oil prices have added to inflation worries as the country is a net oil importer.
Indonesia’s Plan to Export Solar Energy to Singapore Hits a Snag
The planned export of solar energy from Indonesia’s Batam to Singapore appears to have hit a snag, as appointed electricity exporters face challenges in securing financing under Jakarta’s licensing rules, The Straits Times reported.
Several Indonesian and multinational companies have been commissioned to build solar farms in Batam and sell the output to Singapore. But none of the solar farms has seen significant construction progress yet as companies face challenges in securing financing for the projects.
Indonesia requires renewable energy exporters to renew their permits every five years under Clause 37 of the Ministry of Energy and Mineral Resources’ 2021 regulation on electricity business operations. This creates uncertainty, since the government can revoke a licence, or reduce the permitted export quota, if it determines that electricity exports are disrupting domestic supply and causing local blackouts.
Wilmar’s Indonesian Executive Gets 6-Year Jail Term, Fine Over Bribing Judges
Singapore-listed agribusiness Wilmar International said that its Indonesian unit’s head of social security legal has been handed a six-year jail term and a fine of IDR 300 million rupiah (USD 17,700), The Business Times reported.
The Central Jakarta District Court sentenced Muhammad Syafei for bribing the judges who had earlier acquitted Wilmar subsidiaries of charges related to wrongfully obtaining export permits for oil products.
Danantara Taps Chinese Firms to Roll Out Waste-to-Energy Projects
Indonesian sovereign fund Danantara has selected two Chinese companies as operating partners for the first phase of its waste-to-energy projects, The Jakarta Post reported.
The fund said that Wangneng Environment has been chosen to operate a plant in Bekasi, West Java, while Zhejiang Weiming Environment Protection will operate a plant in Denpasar, Bali.