EQT Private Capital Asia agrees .1bn deal for PropertyGroup Guru; seeks .5bn fundraise | FinanceAsia

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PropertyGuru Group, a leading property technology company in Southeast Asia ( SEA ), has been purchased by Hong Kong-based EQT Private Capital Asia for$ 1.1 billion in cash.

In support of the merger, TPG ( through TPG Asia VI SF and TPG Asia VI SPV, in its capacity as general partners of TPG Asia VI Digs ), which owns around 26.5 %, and KKR ( through Epsilon Asia Holdings II ), which owns around 29.6 % of the firm, have entered into voting and support agreements with the business and EQT Private Capital Asia.

PropertyGuru’s board of directors, acting upon the advice of a particular commission, unanimously approved the deal and recommends acceptance of the acquisition by PropertyGuru’s owners, according to an August 16 news.

The offer is equal to$ 6.70 per share and represents a 52 % premium to PropertyGuru’s closing share price on May 21, 2024, the last unaffected trading day prior to media speculation regarding a potential transaction, and a 75 % and 86 % premium to the company’s 30-day and 90-day volume-weighted average share price, respectively, for the period ending May 21, 2024, the announcement said. &nbsp,

The deal is expected to close in Q4 2024 or Q1 2025, subject to final problems, including acceptance by PropertyGuru’s shareholders and certificate of regulatory approvals.

Upon completion of the transaction, PropertyGuru’s shares will no longer trade on the New York Stock Exchange ( NYSE), and PropertyGuru will become a private company. PropertyGuru’s office will be in Singapore.

 

Freshfields Bruckhaus Deringer acted as the specific committee’s legal counsel, and Moelis &amp, Company is its financial advisor. Ropes &amp, Gray is acting as legal counsel to EQT Private Capital Asia, and Morgan Stanley Asia ( Singapore ) serves as financial advisor to the company. Latham &amp, Watkin is KKR and TPG’s legal advisor, and JP Morgan Securities Asia Private is their financial director.

 

PropoertyGuru Group has a consolidation program with members of BPEA Private Equity VIII, a purpose-driven international investment company, in order to have the business acquired by EQT Private Capital Asia. &nbsp,

 

Progress potential&nbsp,

 

The company founded in 2007 and has a modern home platform across Singapore, Malaysia, Vietnam and Thailand. In a special purpose acquisition ( SPAC ) agreement with Bridgetown 2 Holdings, which Richard Li and Peter Thiel supported, it was listed on the NYSE in March 2022. &nbsp,

Hari Krishnan, chief executive officer &amp, managing director, PropertyGuru Group, said in a statement,” We are pleased to embark on this new chapter with EQT. This agreement comes after decades of transformative growth, which TPG and KKR have supported, making us the industry’s top proptech platform.

Krishnan added:” As we continue to innovate and provide value to our consumers, customers, and stakeholders across the place, EQT’s international experience in building marketplaces and commitment to sustainable development will further improve our perception to power communities to live, function, and thrive in tomorrow’s cities”.

” PropertyGuru has firmly established itself as the leading property marketplace platform in Lake, and we are greatly impressed by the solid foundation it has built over the past 17 times as well as its brilliant staff,” said Janice Leow, companion in the EQT Private Capital Asia advisory group and nose of EQT Private Capital SEA.

Leow continued,” We think our offer strategically positions PropertyGuru to fully exploit its long-term growth potential while offering shareholders compelling value and certainty.” With EQT’s significant experience in the technology, online classifieds and marketplace sectors, we aim to further strengthen PropertyGuru’s platform, driving enhanced innovation and deeper engagement with its consumers, customers and stakeholders”.

Buys Korean recycler, seeks$ 12.5bn raise

For an undisclosed sum, EQT Infrastructure VI purchased a KJ Environment from Genesis Private Equity. According to a media release, the goal is to establish” a sclaed and diversified end-to-end waste treatment scheme platform focused on plastic recycling and waste-to-energy in South Korea.” &nbsp,

KJ Environment works across recyclable waste sorting, plastic recycling and waste-to-energy. It has locations in the Greater Seoul Metropolitan Area, which provide services to catchment areas that account for more than 50 % of the nation’s GDP and population.

The purchase is EQT’s second infrastructure investment in South Korea.

Sang Jun Suh, a partner in the EQT infrastructure advisory team, stated:” We look forward to applying EQT’s extensive experience investing in sustainable waste and recycling solutions across geographies, combined with our strong local footprint and industrial network, to help KJ Environment become a true market leader in the waste treatment space.

The Platform strengthens EQT’s track record of supporting infrastructure companies in the Asia Pacific region by expanding its global portfolio of businesses that conduct waste-related business. Since 2020, EQT Infrastructure has invested €5 billion ($ 5.52 billion ) of equity, including co-investment, in Asia Pacific companies. Around 11, 000 people work in the Asia Pacific portfolio that is managed by EQT’s infrastructure team.

The transaction is subject approvals and&nbsp, is expected to close in Q4 2024. EQT was advised by JP Morgan on financials, Kim &amp, Chang for legal, and PwC for financial and tax.

With this transaction, EQT Infrastructure VI is expected to be 45-50 % based on target fund size and subject to customary regulatory approvals.

Meanwhile, EQT is looking to raise around$ 12.5 billion for EQT Private Capital Asia’s BPEA Private Equity Fund IX. &nbsp,

 

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PropertyGuru Group’s board agrees .1bn sale to EQT Private Capital Asia | FinanceAsia

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PropertyGuru Group, a leading property technology company in Southeast Asia ( SEA ), has been purchased by Hong Kong-based EQT Private Capital Asia for$ 1.1 billion in cash.

In support of the merger, TPG ( through TPG Asia VI SF and TPG Asia VI SPV, in its capacity as general partners of TPG Asia VI Digs ), and KKR ( through Epsilon Asia Holdings II ), have entered into voting and support agreements with the business and EQT Private Capital Asia.

PropertyGuru’s board of directors, acting upon the advice of a particular commission, unanimously approved the deal and recommends acceptance of the acquisition by PropertyGuru’s owners, according to an August 16 news.

The offer is equal to$ 6.70 per share and represents a 52 % premium to PropertyGuru’s closing share price on May 21, 2024, the last unaffected trading day prior to media speculation regarding a potential transaction, and a 75 % and 86 % premium to the company’s 30-day and 90-day volume-weighted average share price, respectively, for the period ending May 21, 2024, the announcement said. &nbsp,

The deal is expected to close in Q4 2024 or Q1 2025, subject to final problems, including acceptance by PropertyGuru’s shareholders and certificate of regulatory approvals.

Upon completion of the transaction, PropertyGuru’s shares will no longer trade on the New York Stock Exchange ( NYSE), and PropertyGuru will become a private company. PropertyGuru’s office will be in Singapore.

 

Freshfields Bruckhaus Deringer acted as the unique committee’s legal counsel, and Moelis &amp, Company is its financial advisor. Ropes &amp, Gray serves as EQT Private Capital Asia’s legal advisor, and Morgan Stanley Asia ( Singapore ) serves as its financial advisor. Latham &amp, Watkin is KKR and TPG’s legal advisor, and JP Morgan Securities Asia Private is their economic director.

 

The PropoertyGuru Group intends to combine with members of BPEA Private Equity VIII, a purpose-driven international funding company, in order to be acquired by EQT Private Capital Asia. &nbsp,

 

Growth 

 

The company founded in 2007 and has a modern home platform across Singapore, Malaysia, Vietnam and Thailand. It signed a particular goal consolidation agreement with Bridgetown 2 Holdings, led by Richard Li and Peter Thiel, in March 2022 and was listed on the NYSE. &nbsp,

Hari Krishnan, chief executive officer &amp, managing director, PropertyGuru Group, said in a statement,” We are pleased to embark on this new chapter with EQT. This agreement comes in the wake of centuries of transformative growth, which TPG and KKR have supported, making us the industry’s leading proptech platform.

Krishnan added:” As we continue to innovate and provide value to our consumers, customers, and stakeholders across the place, EQT’s international experience in building marketplaces and commitment to sustainable development will further improve our perception to power communities to live, function, and thrive in tomorrow’s cities”.

” PropertyGuru has firmly established itself as the leading property market system in Lake, and we are deeply impressed by the strong base it has built over the past 17 years as well as with its brilliant group,” said Janice Leow, partner in the EQT Private Capital Asia consulting team and head of EQT Private Capital SEA.

Leow continued,” We think our offer carefully positions PropertyGuru to fully exploit its long-term development possible while offering shareholders compelling value and certainty.” With EQT’s considerable knowledge in the technology, online classifieds and market sectors, we aim to further improve PropertyGuru’s platform, driving increased innovation and deeper engagement with its consumers, customers and stakeholders”.

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DBS’ Tan Su Shan to lead the bank in 2025; H1 profit hits record high | FinanceAsia

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On March 28, 2025, DBS announced the appointment of Tan Su Shan as the company’s second chief executive officer to take over from CEO Piyush Gupta. In the interval, Tan has become sheriff CEO of the institution, &nbsp, in addition to her place as team head of administrative banking.

After Gupta’s 15 years in charge, Tan, who joined Citi in late 2009, will become the first woman CEO in the company’s past. Following the review of both internal and external applicants, her appointment was made. In a company media release, Tan was cited as the strongest candidate in the lengthy development program attended by interior candidates. &nbsp,

Headquartered in Singapore, DBS is one of the largest banks in Asia with offices in Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, mainland China, Philippines, Taiwan, Thailand, United Arab Emirates ( UAE ) and Vietnam. DBS even has appearance in Australia, the UK and the US. The bank provides services to consumers, small-medium enterprises ( SME) and corporates.

In her new position, Tan will take more than 35 years of experience in customer banking, wealth management and administrative banking. Based in Singapore, Tan has even worked in different financial centres such as Hong Kong, Tokyo and London.

Tan has worked for DBS since 2010, beginning her career there in 2010 when she started her career in the bank’s money management division. She now oversees the company’s customer banking, wealth management, and institutional banking divisions, which account for 90 % of the company’s revenue. Across these jobs, Tan had likewise helped apply DBS ‘ digilisation approach, and since 2014 has been president director of DBS Indonesia.

Tan has also been nominated for a seat on the Singapore legislature from 2012 to 2014, and he has also been appointed to a number of advisory boards.

The announcement came as DBS revealed Q2 2024 net profit up 4 % to S$ 2.8 billion ($ 2.1 billion ) with a return on equity of 18.2 %. First-half net profit was up 9 % to a record high of S$ 5.76 billion, &nbsp, driven by “broad-based growth”, according to the bank. &nbsp,

Consumer banking and wealth management revenue increased by 18 % to S$ 5.06 billion for the first half of the 2024 financial year, partially offset by Citi Taiwan’s consolidation, which was completed in August 2023, to reach S$ 5.06 billion. Lower net interest income and higher loan-related fees, cash management fees, and treasury customer income were all factors that contributed to institutional banking income, which was” stable” at S$ 4.69 billion. Businesses trading revenue was much changed at S$ 433 million.

Despite experiencing regulatory issues with the Monetary Authority of Singapore following a number of interruptions, the banks recorded record profits of S$ 10.1 billion for the 2023 fiscal year. &nbsp,

DBS president Peter Seah said in a media launch,” Under Piyush’s management, DBS has been transformed into a high-performing, high-returns organization recognised together for security and innovation”.

Seah continued:” Tan’s proper orientation, track record in building companies, familiarity with technology, leadership skill as well as strong customer control and communication abilities make her the best son. Important for us, she even embodies the DBS lifestyle. I’m pleased that a Singaporean with extensive international experience has emerged as the ideal leader and that Piyush may continue to leave us.

Tan has collaborated strongly with me for more than ten years to get the banks where it is today, according to Gupta in the same release. Since joining, she has been instrumental in the growth of our money management, consumer banking, and administrative banking operations, and she now holds personal ownership of the business. With her visit, we can be certain that DBS’s change will continue well into the prospect.

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Deutsche Bank appoints private banking market head for Singapore | FinanceAsia

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Puneesh Nayar, managing director, is joining Deutsche Bank (DB) as market head in Singapore in its private bank, effective August 12. The branch sits within DB’s global South Asia. private bank division.

The Global South Asia business serves non-resident Indian (NRI) clients, and other clients from the sub-continent, from Singapore, Hong Kong, Dubai, Geneva and London.

Nayar (pictured) has over 20 years of industry experience, most recently at Julius Baer where he was a senior team head for global India since 2016. Prior to that, he was the head of non-resident Indians Southeast Asia (SEA) and Middle East at BSI Bank, also in Singapore. Nayar also previously held roles at Coutts Bank and HSBC.

In another move in the same private banking division, in March, Nick Malik rejoined DB as market head, ased in Dubai. Malik returned to DB  this year from Credit Suisse. He was previously group head with DB for six years until 2022, and before that with Standard Chartered Private Bank in Singapore and Dubai. Prior to that, he was a senior advisor at Coutts’ in Singapore and the United Kingdom.

Both Nayar and Malik will report to Rajesh Mahadevan, DB’s head of Global South Asia & Africa, private bank emerging markets.

Mahadevan commented in a media release: “Our Global South Asia & Africa business is a market leader in this segment and a strong business pillar within our emerging markets franchise. DB’s global connectivity, balance sheet strength, combined with our corporate bank and investment bank offering gives our clients access to bespoke lending, banking and capital market solutions.”

Mahadevan added: “Puneesh and Nick’s breadth of experience and deep understanding of this client segment will further cement our market position as we broaden client coverage across core markets in Asia and the Middle East.”

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Hines acquires second industrial property in Singapore through JV | FinanceAsia

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US-headquartered real estate investment manager and developer, Hines, has announced its acquisition of a logistics asset in Singapore, through a joint venture (JV) with Mitsubishi Estate and MBK Real Estate Asia (MREA).

The property is located at 15 Senoko Loop in northern Singapore near the Johor-Singapore Causeway on the border with Malaysia. 

A July 2 press release stated that the property (pictured) sits on a 24,464-square-metre site with a four-storey facility that has around 41,482 square metres of total gross floor area.

Kim Fong Lim, country head of Singapore at Hines, told FinanceAsia: “Singapore’s industrial sector does present favourable dynamics. The sector has seen rent and capital value growth due to supply constraints, making it an attractive investment opportunity.”

“Importantly, this deal represents Hines’ first joint venture with Japanese institutional partners in Singapore whom we look to scale our business within the market,” he added.

Other promising sectors the Hines team is exploring in Singapore include office, retail and living although industrial continues to be the key focus.

Lim said the team is also looking at ground up development opportunities.

CBRE disclosure shows that the property was on sale at an indicative price of S$100 million ($73.6 million) last October. Final size of the deal remains confidential.

LSEG data recorded 31 industrials mergers and acquisitions (M&A) transactions that targetted the Singapore market in the first half of 2024, with a total value of $175.3 million. Real estate was recorded separately in the dataset, standing at $126.85 million with 11 deals in the first half.

Both sectors witnessed a year-on-year decrease of almost 90% compared with the first half of 2023.

This marks Hines’ second industrial deal in the Singapore market,after its acquisition of Bukit Batok Connection in 2022. The press release underlined that limited quality spaces and a supply crunch have driven up rent prices and capital value growth for Singapore’s industrial and logistics sector in Q1 2024, making it one of the “most popular” among Asia Pacific (Apac) investors.

“With the growing strength of our industrial portfolio in Singapore, together with the sector’s demand and supply dynamics, we’re optimistic and eager to capture more opportunities in the market,” Lim commented in the press release.

Koji Segawa, managing director of Mitsubishi Estate Asia said the team believes Singapore’s logistics and industrial sector will continue to be “robust”; while Koji Nishikiori, director and chief executive officer (CEO) at MREA pointed to both the acquired property’s “prime location” and the sector’s “strong performance”.

The transaction was completed late June on a sale and leaseback basis, where the building is leased back to the seller, British American Tobacco, as the anchor tenant. Hines, Mitsubishi Estate and MREA become the joint lessors.

Sumitomo Mitsui Banking Corporation (SMBC) Singapore Branch acted as the financing partner for Hines.

Hines opened its Singapore office in 2020, managing assets for its regional clients through funds and programmatic ventures.

MREA is a wholly owned subsidiary of Mitsui and Co., founded in 2017 targeting real estate business in Southeast Asia. Mitsubishi Estate is one of the largest real estate developers in Japan, whose track record in Singapore includes co-development of office building CapitaSpring with CapitaLand.


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UOB makes ‘management refresh’ amid digital push | FinanceAsia

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United Overseas Bank (UOB) is making several senior leadership changes. From September 1, Susan Hwee, head of group technology and operations (GTO) will assume the role of head of group retail, taking over from Eddie Khoo.

Khoo (pictured left) is retiring from his role, but will still take on the position of senior adviser to United Overseas Bank (UOB) Vietnam.

To replace Hwee (pictured middle), UOB has promoted Singapore-based Lawrence Goh (pictured right) is promoted head of GTO and will commence the role on the same day as September 1, according to a UOB press release.  

UOB is a leading bank in Asia, headquartered in Singapore with subsidiaries in China, Indonesia, Malaysia, Thailand and Vietnam. The global bank has 500 offices in 19 countries throughout Asia Pacific, Europe and North America.

Hwee has more than 35 years of experience in the technology and banking industry. Having joined UOB in 2001, Hwee leads the bank’s global strategy for technology, operations and information security in her present role as head of GTO.

According to the release, Hwee is “instrumental in the development and innovation” of UOB’s digital platform, UOB TMRW, which uses artificial intelligence (AI) to push digital acquisition and customer engagement.

Hwee’s promotion will see her spearhead plans to strengthen the bank’s digital operations and product solutions while increasing customer engagement and connection to Asean opportunities, the release said. Hwee will also help integrate AI and push digital acquisition across UOB’s customer base.

Goh will succeed Hwee as head of GTO after more than three decades of IT experience spread across positions in corporate and consultancy roles. Goh began his professional life at a global advisory firm, having held positions of leadership in strategy and transformation, infrastructure consulting and security. 

Goh currently manages the day-to-day operation and strategic planning of UOB’s infrastructure and platform services across the bank’s international network as chief operating officer for GTO and head of group infrastructure platform services.

Responsible for progressing UOB’s technology strategy, Goh has been “instrumental in shaping the bank’s technological investment and transformation”, according to the release, having established UOB’s first Test Centre of Excellence in 2018 to enhance the bank’s testing quality, automation and consistency.

The aim of Goh’s new role is to push innovation and technology integration to enhance operational efficiency and customer experience, the release said

Khoo is to become senior advisor to UOB Vietnam after retiring as head of group retail. Khoo joined UOB in 2005 and has been “pivotal in growing UOB’s group retail business to the strong regional franchise the bank has today”, the release said.

UOB Vietnam has been integrating Citigroup’s consumer banking businesses following its full integration of Citi’s consumer banking businesses into UOB Indonesia, Malaysia and Thailand, after UOB’s acquisition of several of Citigroup’s businessesin 2022. 

Khoo intends to apply his experience to support UOB’s management team to drive the bank’s retail strategy in Vietnam, with UOB Vietnam “imperative” to strengthening the bank’s regional franchise.

“This management refresh is part of our ongoing efforts to strengthen UOB’s capabilities to serve our enlarged customer base across the region,” commented Ee Cheong Wee, deputy chairman and chief executive officer of UOB, in the release.

Wee added: “With rapid digitalisation in our key markets, Susan’s experience is crucial to drive digital engagement strategies and uplift customer experience. Lawrence, as a seasoned IT leader, will continue to drive innovation and lead our technology transformation in our new phase of growth. Eddie has made invaluable contributions to our retail banking business. In his new role, he will continue to support our team to realise the potential of our retail franchise in Vietnam.”  

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Natixis-affiliated Ostrum AM creates new transition department; aims to expand FI offering in Asia | FinanceAsia

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Paris-based Ostrum asset management (AM), an affiliate of Natixis Investment Managers, has appointed Nathalie Beauvir to head up its newly created sustainable transitions department.

A spokesperson confirmed to FinanceAsia that Beauvir had been in her new role in Paris since the start of the job transition in May.

The newly established department, according to a July 10 press release, consists of five environmental, social and governance (ESG) experts and two corporate social responsibility (CSR) experts.

They will be responsible for strengthening Ostrum AM’s strategic positioning on ESG; optimising the interdependence of investment policies including exclusion, engagement and voting; and developing offerings with new thematic ranges.

The department reports directly to the firm’s chief executive officer (CEO) office.

CEO Olivier Houix commented in the press release that the team expects Beauvir to establish Ostrum AM as a “committed partner for transitions” for stakeholders, in terms of investment strategies and development financing.

Beauvir was promoted from her previous role as head of sustainable bond analysis and research at Ostrum AM,where she was involved in the launch of the firm’s climate and social impact bond fund.

Asia expansion

The Ostrum AM team currently has five portfolio managers and analysts in the Asia Pacific (Apac) region, led by Rushil Khanna, head of equity investments, within Natixis Investment Managers’ Singapore local operations.

Currently, the team has a specific focus on equity investments, while Ostrum AM also aims to provide fixed income expertise locally in Southeast Asia, with the upcoming arrival of a fixed income portfolio manager, the spokesperson told FA.

Globally, Ostrum AM manages around €40 billion ($43 billion) in green, social and sustainability (GSS) bonds, out of its €402 billion in assets managed for institutional clients as of end-March.


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Clifford Capital’s CEO on scaling infrastructure debt financing | FinanceAsia

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Clifford Capital is an equipment credit leasing program focused on creation, distribution, and investment across infrastructure and other genuine assets globally.

The Singaporean government supports the business, which has a plan authority to boost exports and foreign investments, and has pledged to fund projects around the world since it was founded in 2012. &nbsp,

The largest transaction to date for Clifford Capital recently sold for$ 5 million, making it the fifth public infrastructure asset-backed securities ( IABS ) transaction. A subsidiary of Clifford Capital and a wholly owned and newly incorporated distribution vehicle of Bayfront Infrastructure Management ( Bayfront ), which also includes the Asian Infrastructure Investment Bank ( AIIB ) as a shareholder, is Bayfront Infrastructure Capital V ( BIC V ).

BIC V features a collection size of approximately$ 508.3 million multiply across 37 personal money and bonds, 36 tasks, 15 states and 10 market sub-sectors. BIC V has an original aggregate main balance of US$ 218.4 million of ready green and social resources, as defined under Bayfront’s Sustainable Finance Framework, which represent 4 % of the overall principal balance of the profile.

FinanceAsia&nbsp, recently caught up with P. Murlidhar ( Murli ) Maiya, Clifford Capital’s group chief executive officer, to discuss the infrastructure debt financing landscape and its scalability.

FA: Describe your company and the sweeping changes being made to the environment of structured financing options, especially in network purchases, on which Clifford Capital focuses.

Maiya ( pictured&nbsp, above ): &nbsp, Clifford Capital was established 12 years ago, with the support of the Government of Singapore, to address a financing gap in long-tenor credit for infrastructure companies and projects with a nexus to Singapore. We as a group enjoy over$ 5 billion in government guarantees, which give us the ability to raise money at a very competitive price, which in turn allows us to extend credit across long tenors.

Our main areas of focus have always been on the power and coastal infrastructure sectors. However, the concept of system has evolved significantly over time, especially with technological&nbsp, development and the growing emphasis on responsible and socially equal development. As a result, we internally redefined infrastructure to encapsulate all sectors that provide essential services to people and raise the standard of living.

From a credit standpoint, conducting an in-depth analysis of the organization’s or project’s likely cash flows has always been a part of infrastructure financing. One of the keys to our success has been our constant effort to uphold a high standard of analytical rigor throughout the credit process. This analytical rigor is readily applicable to what is now a much wider range of relevant infrastructure sectors, enabling us to provide clients with creative debt financing solutions even for those that were previously viewed as infrastructure.

FA: Could you describe some of the subtleties of these industries and how you see them as the originators of long-term debt financing deals?

Maiya: Beyond renewable energy and digital infrastructure, there is a lot of interest in the data center market, which will grow as demand increases as AI becomes more prevalent. Unlike conventional real estate projects, data centres often enter long-term contracts with hyper-scalers, like major cloud service providers, and these long trem contracted cash flows provide the basis on which non-recourse debt can be structured.

Given the important roles that social infrastructure plays in society and their advantages over traditional long-tenor financing, such as schools, universities, and hospitals.
In industrials and transportation, we see sectors like steel, cement, and aluminum in transition to cleaner and more energy efficient production methods. Financing for intriguing new technologies is also being fueled by a combination of policy support and corporate sustainability goals.

Additionally, the transportation sector is undergoing significant changes, particularly in the electric vehicle space. Parts of the electric vehicle ( EV ) value chain, such as charging infrastructure and batteries lend themselves to infrastructure-like financing solutions. This evolution demonstrates how important verticals, such as transportation and industrials, are both experiencing significant shifts in sustainability.

Lastly, for our natural resources vertical, our focus is on new resources like green hydrogen, green ammonia, and key mineral resources like lithium, nickel, etc. to propel the upcoming sustainable economy.

FA: Given your various strategic priorities, how do you decide which client opportunities to pursue?

Maiya: We primarily assist businesses with debt financing when they want to invest regionally or globally. We do this by supporting those with strong ties to Singapore. We look into any financing issues they might have in commercial markets. Notwithstanding our government support, we operate on a commercial basis, and always ensure rigorous credit assessment and market-based pricing.

Our industry groups all benefit from our credit analysts ‘ expertise. We have been making real progress on this front, and sustainability is another area of focus for us. In 2023, 52 % of new primary loans originated were for infrastructure projects that are green and/or sustainable.

FA: Could you elaborate on how sustainability is affecting the industry you run in?

Maiya: The rise of green and sustainable initiatives has a significant impact on the growth trajectory of infrastructure debt financing. Across client organisations, we’ve observed varying approaches, but they all converge on a common challenge: the immense funding needed for the green transition to achieve net zero emissions. The Asia-Pacific region receives only about 10 % of global funding, despite having a third of the world’s funding needs. This discrepancies offer significant opportunities for businesses like us.

Another powerful tool is blending finance, which can sometimes be a challenge in Asia, to unlock funds for sustainable development. Local governments, multilateral development banks, and other concessional capital sources are making tangible commitments to blended finance.

For instance, the MAS’s Financing Asia’s Transition Partnership ( FAST-P), a blended finance initiative that aims to mobilize up to$ 5 billion to finance transition and marginally bankable green projects in Asia.

Clifford Capital is also responsible for its commercial operations, and it is crucial to demonstrate positive commercial outcomes. By delivering returns to our private sector shareholders, we are also demonstrating our ability to combine public policy objectives with private capital initiatives. This demonstration demonstrates that it is possible to incorporate a public policy goal into a successful business model, allowing it to catalyze other sources of capital over time.

FA: How do you stand out from the competition when it comes to providing debt financing for infrastructure projects?

Maiya: Due to our ability to take on greenfield construction risk and longer tenor financing, we have a unique approach in comparison to most institutional capital providers. Institutional capital frequently struggles with construction risk, preferring to invest in already-active assets that generate cash flow.

Our area of expertise is in managing risks at this stage. We develop a specialized financing plan that addresses the needs of the borrowers while upholding a code of ethics for creditworthiness and market-clearing pricing. Due to the variations in contracts and economic business models, this combination calls for specialized technical skill sets that vary by industry. We have invested a lot of time in developing teams and procedures that make it easier for us to operate in the demanding world of infrastructure credit.

FA: How do you intend to expand your debt-free solutions to make room for the significant funding gap?

Maiya: Clifford Capital has a proven method for distributing infrastructure credit. We established the Infrastructure ABS asset class in Asia and still run a highly profitable securitization business under the name” Bayfront.” We also obtain loans from both primary and secondary loan markets, primarily from the banking industry, in addition to originating our loans from corporate clients. Then, based on their risk appetites, we then divide the loans into securitized portfolios and divide them into various tranches. We keep a sizable portion of these structures ‘ original losses.

Our end-to-end origination and distribution model makes the company’s ability to raise significant capital quickly, allowing us to fund higher credit volumes without having to rely solely on our own, expanding the company’s scalable business model. Through Infrastructure ABS, our efforts to bring institutional debt capital into the infrastructure market bridge the financing gap in the Asia Pacific region for green infrastructure. &nbsp,

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Why global uncertainty won’t undermine transition goals | FinanceAsia

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When FinanceAsia editorial board member, Sunil Veetil, took on his Singapore-based leadership role as head of Commercial Banking Sustainability for Apac at HSBC back in summer 2022, Asia was in the throes of pandemic uncertainty. Market to market, the approach of each governing authority proved to be heavily nuanced: Singapore had not long lifted restrictions to social gatherings and would soon abandon the mask mandate; while Hong Kong’s decision makers would deliberate for a further seven months before considering any such easing.

Yet, with hindsight being 20/20 (some may recoil at reference to the fateful numerical sequence), there was a sense of steadiness – albeit slow – in the unravelling of pandemic protocol which sits in stark contrast to today’s atmosphere of fast-paced-but-frequently-wavering global political and socioeconomic uncertainty. With over half of the world going to the polls this year – and a lot riding on upcoming election outcomes including France’s hung parliament and the final months of campaigning in the US; geopolitical complexities and tensions are pervading all market developments, not least the macroeconomic and inflationary outlook.

Reassuringly, however, Veetil is resolute in his resolve that global climate aspirations will forge ahead in spite of current conditions. “When you talk climate, you have to look long term,” he told FA. “Whilst there are short-term disruptions and changes – some of which have been positive; for example, the supply chain dispersion that has been taking place across the Asian region – it’s important to view climate from a longer perspective.”

He pointed to the outcomes of last November’s COP28 UN Climate Change Conference in Dubai, which served as a global stocktake of progress achieved by key economies towards the goals of the Paris Agreement, at the halfway point to their ultimate delivery by 2030. While the event publicly affirmed failure in capacity to limit global warming to 1.5 degrees Celsius by the end of this century; for the first time, it achieved consensus among all 196 heads of state and government officials to sanction the “beginning of the end” of the fossil fuel era, with efforts to eradicate their use by 2050. The conference laid the ground for a “swift, just and equitable transition, underpinned by deep emissions cuts and scaled-up finance”, a strategy which complements HSBC’s own ambitions to align its financing portfolio to net zero by 2050, as announced by the bank in 2020.

Climate management, Veetil explained, involves tackling a “perfect triangle” of challenges: politics, climate and the overall socio-economic picture. “The socio-economic impact of climate upon people is becoming all the more evident as we proceed… and to bring this all together, is the flow of capital.” He noted that while a lot of climate policy frameworks and trendsetting comes from Europe, the impact – “where the rubber hits the road” – is in Asia “and this is where the complexity is.”

Expanding on his comments for FA’s analysis of Asia’s debt capital market (DCM) activity, in which sustainable transactions were highlighted as playing an increasingly significant role within regional DCM dealmaking, Veetil said that typically, it continues to be the larger regional entities who lead the way in terms of raising significant capital to support sustainability aims. “The large tickets will always be driven by the sovereigns; and then it’s usually state-owned-enterprises (SOEs) or those large-cap private operators active in oil and gas or power and utilities, who are signing the big-ticket transactions.”

This seems to have been the case in 2024 so far, with Asia’s main players pioneering innovative climate transactions. In February, Japan followed up on its 2021 introduction of a transition finance framework by auctioning the world’s first sovereign climate transition bonds as a financing tool to support market growth alongside industry decarbonisation; while during the same month, HSBC participated in the first global multi-currency digital green bond offering, issued in Hong Kong.

“However, we are seeing green loans and sustainability-linked loans (SLLs) pick up at the mid-level and below this, in response to sustainable supply chain requirements. Of course, Asia is a supplier to the world.”

Veetil noted how European and North American buyers have become accustomed to outsourcing their emissions to Asia and that this had contributed some positive social and economic repercussions across the region, including an overall rise in income levels. With increasing pressure to report on and regulate sustainability, he explained that Asia-based manufacturers are not only on top of scope 3 metrics, but are pushing for capital expenditure (capex) to contribute to longer-term sustainability: to counteract those emissions that extend beyond the products themselves such as packaging, as well as manufacturing machinery. 

“Take a textile manufacturer that supplies to one of the big fashion brands. It’s not just that they want a sustainable supply chain and a robust working capital requirement; they’re also looking at how to install a wastewater treatment plant or rooftop solar. They are actively seeking capex investment plus working capital that is sustainable.”

Additionally, he highlighted the emergence of a circular economy to facilitate long-term sustainability, as being a growing trend: “Look at the battery ecosystem for example, a huge industry is developing around the recycling of batteries – additionally the recycling of solar panels, turbines and so forth is being considered. The recycling industry is becoming larger as ultimately, unless there is a circular economy around it, resources will be wasted. New action is being taken to develop a fully circular product lifecycle.”

The role of tech

Veetil emphasised various strides made across the field of technology, as being key to the future direction of the sustainability market. He commended Japan’s move to funnel over 55% of the proceeds from its recent climate transition issuance into research and development (R&D). “The future impact of investment going into research is set to be significant,” he said, noting the market’s action to invest in and develop domestic hydrogen production.

“Hydrogen has real potential to drive transition across hard-to-abate sectors such as steel, construction and aviation. But currently the market is ‘grey’ as it requires coal power to extract it from H2O.” He added that China and India are also investing heavily in the development of hydrogen. “It’s a space to watch.”

Climate-related research and technology is one of the areas which HSBC’s New Economy initiative aims to support. Since June last year, the bank has launched two fundraising strategies in Asia to invest in early-stage high-growth and tech-focussed businesses, to promote regional innovation. The first strategy, a $3 billion New Economy Fund (NEF) targets opportunities in Hong Kong and the surrounding Greater Bay Area (GBA), while a more recently launched $200 million vehicle targets investment across Singapore and Southeast Asia. Last month, the latter signed its first dedicated social loan to support Vietnamese venture-backed biotech start-up, Gene Solutions, which aims to enhance the accessibility and affordability of essential healthcare services across Southeast Asia. Another recent contribution included a $30 million green and social loan to Indonesia’s acquaculture and intelligence start-up, eFishery, which works to empower smallholder fish and shrimp farmers through tech, by increasing feed efficiency and reducing waste.

Veetil agreed that there is a strong socio-economic angle to sustainability developments in Southeast Asia, offering the example of electronic vehicle (EV) two-wheelers: “In certain areas in Southeast Asia (such as Vietnam and Indonesia) – as well as India, the majority of the population can’t afford to buy cars. We are going to see EV two-wheelers becoming more prevalent, popular and impactful… In fact, this is already happening and will continue to do so in the short- to medium-term.”

He added that the technologies emerging around carbon capture also offer real potential, but they “haven’t yet reached a sweet spot for mass adoption.”

Regulatory developments

But perhaps the most influential factor set to shape the sustainability landscape to come, is regulatory development and with it, clarity around how to deliver and enact a shared vision.

“What I am monitoring most closely on the regulatory side of things, is progress around the development of a country taxonomy,” Veetil disclosed.

“Reporting requirements are evolving quickly. Markets such as Hong Kong and Singapore have been very much at the forefront of this, but huge strides are also being made in geographies such as China and India, with new reporting requirements being introduced for listed companies.”

Singapore’s Accounting and Corporate Authority (Acra) together with Singapore Exchange Regulation (SGX RegCo) have mandated that listed companies start disclosing their climate impact in a phased manner, from financial year 2025.

“Over the next three years, most companies based in Singapore will report their climate data, which will certainly have an impact on the corporate mindset operating in the region,” Veetil said.

“Similarly, regulation being introduced elsewhere, such as in Europe, is taking effect globally. Take for example the new European deforestation regulation that has been published; as well as the carbon border adjustment mechanism (CBAM), which will soon take effect.”

“This is where we need a unified body to monitor and manage the direction of shared sustainability efforts. Currently this is something that is missing.”

Veetil suggested that various international entities are exploring options; and he proposed that efficacy could be found through a consortium of international central banks; or an governmental body such as the United Nations (UN) forming a platform involving corporates and financial institutions.

“We live in a very seamless economy, regulations in one country will definitely have an impact on the other.”

 


¬ Haymarket Media Limited. All rights reserved.

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Cryptos, gold and the end of the dollar – Asia Times

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In: Asia, Finance

The US federal debt, which is currently approaching US$ 35 trillion or 1200 % of GDP, is alarming a growing number of economics and financial analysts. Prior to defence spending and rights, interest payments on the debts have grown to be the most important item in the US federal budget.

In earlier June, previous US House Speaker Paul Ryan proposed that the US government may recognize stablecoins, resource- backed bitcoin, as settlement for US Treasuries. According to Ryan, the initiative would lead to an “immediate, tough increase in demand for US debts, which would lessen the chance of a missed debt auction and an ensuing financial and economic crisis.”

Ryan’s plan serves as a testament to how serious the US loan issue has grown. Cryptocurrencies were conceived as anti- stablecoins currencies. They are modern currencies that are privately issued and can be used anywhere in the world in an anonymous manner. Bitcoin, the first bitcoin, was meant to be a system for a new economic system that could start with a clean slate.

In the US, as of 2024, crypto advocates are calling for the regulation of asset-backed cryptos ( stablecoins ) so that they can be used to buy US Treasuries and pay taxes. Cryptocurrencies may be able to save the imperfect financial system that they were supposed to replace.

US Congressman Matt Gaetz introduced a bill that would allow Americans to give their federal income tax in Bitcoin two days after Ryan submitted his plan. Gaetz claimed that the dramatic change would encourage creativity, increase efficiency, and give Americans more freedom.

This is a courageous step in the direction of a future where digital currencies are essential to maintaining the US’s position as a leader in scientific development, according to Gaetz.

Is it possible for a fiat currency to survive with personally issued currencies? In the last 50 years, the dollar lost 90 % of its value, and it is still losing money annually at a rate of about 10 %.

Altcoins vary widely in price, but almost all of them are priced in dollars. They are therefore susceptible to a potential ( some economists say unavoidable ) devaluation of the dollar. &nbsp,

Bitcoin Pizza Day

A bit of bitcoin history. A computer programming using the pseudonym Satoshi Nakamoto published a report on a crypto bulletin board on October 31, 2008, to proclaim Bitcoin, the first peer-to-peer cryptocurrency. People may “mine” Bitcoins by completing complicated mathematical puzzles and receive rewards for the newly created coins.

Nakamura argued that the economic system was corrupt and benefited a tiny elite by using taxpayer money to bail out Wall Street in 2008. Bitcoin would be the person’s income, beyond the power of governments. It may make it possible to pay someone anywhere in the world almost completely for free.

Just 21 million Bitcoin could be mined, making fiat currencies defense to inflation brought on by overwhelming money stamping, a criterion found in fiat currencies.

Bitcoin is based on systems that existed, among them modern names.

In 2010, Bitcoin recorded its first commercial exchange. Who delivered two pies to his Florida residence in the form of a Bitcoin worker named Laszlo Hanyecz offered 10, 000 BTC to him?

American computer Jeremy Sturdivant accepted the offer. He had two pies delivered to Hanyecz’s house at a cost of$ 25, and Hanyecz transferred 10.000 bitcoin to Studivant’s Bitcoin budget. Bitcoin was valued at$ 0.0041 during the transaction.

Currency’s initial purchase, remembered as Bitcoin Pizza Day, generated broader involvement in the modern money. Entrepreneurs started crypto exchanges to facilitate the purchase and sale of cryptocurrencies, and they invested in server farms to stone cryptocurrencies. In a simple 15 times, Bitcoin’s cost went from almost zero in 2009 to a maximum of &nbsp,$ 75, 830 in early 2024.

Bitcoin’s potential as a pay method was unsuccessful. Just a small percentage of Bitcoin transactions are made for retail use. The remainder involves crypto investing.

Crypto companies have created a number of different kinds of altcoins. Among them are bitcoins. Some cryptocurrencies are backed by assets like real estate, corporate debts, and even other cryptocurrencies, people are backed by reserves of stablecoins assets held in bank transactions. A bitcoin named DigixDAO has a” stain backed by physical gold” that is supported by 1 ounce of silver that is stored in a bunker.

Ironic is the rise of cryptocurrencies that are gold-backed. The US government’s decision in 1971 to remove the money from the gold standard was largely responsible for the difficulties in the financial system, which allegedly contributed to the development of Bitcoin.

The consists

After WWII, the US dollars became the global reserve currency. The dollar was purged from gold at a fixed price of$ 35 per ounce under the Bretton Woods Agreement of 1944. &nbsp, The English lb, the French franc and assets of different countries were pegged to the money, and hence indirectly to silver. By limiting the amount of money that can be issued, metal resources impose fiscal discipline on nations.

In the 1960s, many European nations expressed concern that the US state was damaged financially, which was the outcome of a pricey war in Vietnam and the introduction of social plans ( the War on Poverty ). Economists in Europe speculated that the US was printing more money than gold had again.

The French state made its issues known in a serious manner. It demanded ore in exchange for sending a warship full of dollars to New York. Many other countries followed suit, albeit without ships, and they progressively drained US silver resources.

At the end of World War II, the US had 21 measurement tons of gold. In 1971, just 8.133 plenty remained. The US government announced that it would temporarily shut the so-called golden windows, defaulting on the Bretton Woods Agreement, in order to lose its remaining property.

In exchange for military protection, the US in 1974 persuaded Saudi Arabia to buy all of its oil in dollars to maintain the worldwide demand for the currency. The deal mandated that all oil-importing countries keep dollar reserves, leading to an ever-increasing demand for dollars.

The so-called petro-dollar strengthened the status of the US dollars as the world supply money. The oil trade represents only 7 % of the global economy, but it is essential to the other 93 % of the economy.

Exploding loan

The US government has quickly increased its bill, no more constrained by the restrictions imposed by the gold standard. In 1971, US debt was$ 400 billion, in 2024 it reached$ 34 trillion, or 120 % of GDP.

To fund its shortfalls, the US government issues attention- bearing Treasuries. Backed by” the full faith and credit” of the US state, Treasuries have been regarded as a risk- completely purchase. The major customers were private owners, international institutions, pension funds and insurance companies.

Silver has been replaced as the dollar system’s core by US debts.

But history is repeating itself. In the late 1960s, France was concerned about the US silver deposits. Currently, China is concerned about US Treasuries.

China developed a sizable trade surplus with the US, bringing in at one point$ 1 billion a day net as it became the factory of the world. China became the world’s largest borrower to the US with a portion of its dollar to buy US Treasuries, joining Japan and Japan as the only other country to do so.

Next came the renowned Wall Street loan and the global financial crisis of 2008. China came to the conclusion that the US lacked the desire to control its investing or overhaul its political or economic system. China eventually cut back on its US bill purchases throughout the 2010s. Also, it started to lay the foundation for an alternative economic structures.

De-dollarization

Om 2021, China, Hong Kong, Thailand and the UAE announced they were developing mBridge, a digital alternative to SWIFT ( Society for Worldwide Interbank Financial Telecommunication ). Importantly, mBridge is based on a variation of bitcoin, the technology used in most bitcoin.

The standard structures of mBridge, the BRICS solution to Smooth

mBridge is designed to work with Central Bank digital currencies and serves as the most good case study for a monetary settlement system for the BRICS nations. The Cooperation Council for the Arab States of the Gulf ( GCC), comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, has tested its own CBDC Bridge that will be connected to mBridge.

BRICS is also developing a trading forex system that could be backed in part by silver, oil, and other supplies. The biggest obstacle to the money has been a gold or oil-backed currency. Despite their strange appearance, golden and petrol have remained close to balance for more than a century. Their individual rates move within a very small area.

In 1971, when the US closed the golden window, an ounce of gold sold for$ 35. It reached$ 2, 450 in first 2024. In 1971, a barrel of oil was$ 3.60. In recent years it has traded between$ 80 and$ 100 a barrel. Measured in silver and oil, the money lost about 90 % of its value in the last 50 years.

If the BRICS introduces a coin that is pegged to gold, it might have an impact on the prices of everything from copper and gold to aluminum and the crucially important rare earths used in natural technology.

A developing BRICS will not only be the largest manufacturer of many industrial and consumer goods, but also have the ability to control a sizable portion of international assets. The latest BRICS people ‘ complete economic output has already surpassed that of the G7.

Saudi Arabia made the announcement to visit both BRICS and mBridge in June of this year. The Saudis had now begun selling non-dollar oil, but the statement made it clear that their commitment to the petro-dollar had come to an end.

The Saudi choice elicited a reaction from Michael Saylor, inc- founder of crypto big MicroStrategy. According to Taylor, the Saudis were making a error and should have chosen Bitcoin otherwise.

He wrote:” Picture a planet where 50, 000 businesses use cryptocurrency with P2P settlements with each other. Ask the Bank of Australia, the Bank of Austria, or the Bank of China if they would n’t like to have an asset that does n’t lose 7 to 10 % of its value annually. Ask them if they would n’t prefer to be able to make deals with any other banks in the world, peer- to- gaze. It’s an advancement over the existing system”.

Saylor perhaps knows better. Why do countries in the BRICS, including Saudi Arabia, China, and other BRICS nations, exchange their goods or commercial goods for dollars while deviating from the money system?

Crypto or metal?

Severe forms of economic engineering have made the US debt problem worse. Introducing bitcoin into the monetary system takes this a significant step further. Cryptocurrencies can be used secretly and across borders, making it ideal for duty evasion. It was, according to scholar Michael Hudson, change the US into” the new Switzerland”.

Hudson wrote:” The US sees acting as the place for the country’s tax evaders, criminals and others as a good regional strategy. The intention is not to criticize tax violence and more violent criminal acts, but to make money by serving as lender for these activities.

The US has three options, according to macroeconomist Luke Gromen, none of which are painless: it must reduce defence spending and privilege by at least 30 %, it is partially mistake, or it can fill the bill, barring a productivity miracle caused by AI or a breakthrough in cheap energy. Only in a national incident, which may lead to years of incredibly high inflation, are the first two options politically feasible.

Also, says Gromen, the US will have to re- flourish to reduce its reliance on foreign companies for even the most simple of items. The second US president will need to develop an commercial policy, or, better still, a national strategy to reimagine society.

In the short term, there is no reason for optimism. Donald Trump, a former US president, granted cryptocurrencies. He has pledged to chastise nations that stop using the money and that his reelection strategy accepts donations in bitcoin.

That does n’t sound like a plan. Reserve economies are on the verge of extinction. They are still present in the colonial period.

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