Latest news with #TingMeng
Business Times
2 days ago
- Business
- Business Times
Indonesia's sovereign wealth fund Danantara appoints four banks to lead up to US$10 billion loan: sources
[JAKARTA] Indonesian sovereign wealth fund Danantara appointed four banks to coordinate a multicurrency borrowing of as much as US$10 billion, in what could be South-east Asia's largest loan, according to people familiar with the matter. DBS Group, HSBC, Natixis and Standard Chartered will be acting as coordinators for the facility, the people said, who asked not to be identified discussing private matters. Danantara, formally known as Daya Anagata Nusantara, sent a request for proposals to regional and international banks for the loan last month with tenors of around three to five years, Bloomberg reported earlier. 'The proposed loan is in substantial size and short tenor, implying considerable repayment pressure,' Viacheslav Shilin and Ting Meng, Asian credit strategists at Australia & New Zealand Banking Group, wrote in a report. This could result in increased reliance on dividends from quasi-sovereign entities to service the debt or a recurring need to refinance, the report said. That could weigh on investor sentiment towards Indonesian quasi-credits. Spokespeople for DBS, HSBC and Standard Chartered declined to comment. Danantara and Natixis did not immediately respond to requests for comment. The fund, which reports directly to President Prabowo Subianto, is a core component of the president's vision to propel South-east Asia's largest economy to 8 per cent growth during his presidency. With Indonesian state-owned enterprises under its supervision – including some of the nation's largest banks and oil and gas giant Pertamina – executives have suggested the fund will have more than US$1 trillion in assets. The mega loan will be unsecured and will not carry any guarantee nor come with letters of comfort or support from the government, while proceeds will be for general corporate purposes, Bloomberg News reported. BLOOMBERG
Yahoo
07-03-2025
- Business
- Yahoo
Baidu's Bond Sale Rides AI Wave With Sector-Beating Pricing
(Bloomberg) -- Baidu Inc. timed it just right with its $1.4 billion debt sale. Trump Administration Plans to Eliminate Dozens of Housing Offices Republican Mayor Braces for Tariffs: 'We Didn't Budget for This' How Upzoning in Cambridge Broke the YIMBY Mold NYC's Finances Are Sinking With Gauge Falling to 11-Year Low How Sanctuary Cities Are Fighting Trump, Again The search engine giant's offering — coming ahead of a $600 million debt due in April - wrapped up Wednesday, as investors kept bidding up China's artificial intelligence-linked stocks. Tapping into this appetite, Baidu snagged coupon rates — 2.7% and 3% for its five- and 10-year yuan-denominated notes, respectively — that were both 10 basis points lower than what larger rival Alibaba Group Holding Ltd. got less than four months ago. Baidu's deal shows investors are ratcheting up their bets on a recent tech rally sparked by DeepSeek's breakthrough and the Chinese government's vow to support innovative technology to revive the economy. Its note sale also may embolden others in the sector to hit the bond market to raise funds, according to Bloomberg Intelligence. 'This is a special timing for Baidu,' said Ting Meng, senior Asia credit strategist at ANZ Bank China Co. 'Investor sentiment has improved significantly on China tech this year, after the government switched attitude from strict regulation to supportive.' Baidu's notes, marketed offshore, were the company's first sale in about four years. They were also its first dim sum bond offering, occurring in the midst of rising demand for such products. With low interest rates in China, dim sum bond sales hit a record 448 billion yuan ($61.8 billion) in 2024, according to Bloomberg-compiled data that goes back to 2007. Meanwhile, the bond market is poised to see more of Chinese tech companies' issues, with the sector's 2025 capital expenditure estimated at about $27 billion, Bloomberg Intelligence analysts Cecilia Chan and Jason Lee wrote in a note. Cheaper funding costs on yuan bonds, which are currently 220 basis points less than dollar debt, also might encourage issuers, they said. 'More Chinese internet and tech issuers might tap yuan bonds for cheaper funding, following Baidu's sale,' they wrote. 'Investment in AI will be the key driver for bond sales for most Asian internet and tech issuers this year.' Snack Makers Are Removing Fake Colors From Processed Foods The Mysterious Billionaire Behind the World's Most Popular Vapes Rich People Are Firing a Cash Cannon at the US Economy—But at What Cost? Greenland Voters Weigh Their Election's Most Important Issue: Trump Trump's SALT Tax Promise Hinges on an Obscure Loophole ©2025 Bloomberg L.P. Sign in to access your portfolio
