Asia

Of all the private banks set up during India’s go-go-years early in the new millennium, Yes Bank was the most ambitious and aggressive, the Financial Times reported. Founded by two career banking professionals who married sisters, Yes Bank had a reputation for taking risks spurned by India’s more conservative private lenders. Initially the scale of its ambitions — as embodied by flamboyant managing director Rana Kapoor — made it a darling among foreign investors, who provided Yes with a tide of growth capital as they looked to bet big on India’s economic ascent.

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The coronavirus outbreak couldn’t have come at a worse time for PT Garuda Indonesia, pummeling demand at the flag carrier just as it faces a debt bill for half a billion dollars, Bloomberg News reported. Debt market concern about sagging travel demand and the impact of financial market turmoil has caused Garuda’s $500 million notes due on June 3 to tumble to a record low of 55.3 cents on the dollar, according to Bloomberg-compiled prices. The securities have dropped 5.9 cents this week after sinking 36 cents last week.

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Two decades after South Korea’s swift economic response helped avert a devastating recession, the country is taking decisive steps to battle another slowdown, this one with a human cost as well, Bloomberg News reported in a commentary. The coronavirus, which has claimed more than 30 lives in South Korea and infected close to 6,000 people, lands new punches on an economy that was just beginning to find its feet after being caught in the U.S.-China trade conflict and a separate spat with Japan. Korea has more Covid-19 cases than anywhere outside China.

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Global rating agency Standard and Poor’s has downgraded ratings for Jain Irrigation Systems Ltd to 'D' — default grade on missing to make interest payment on securities issued by its subsidiary, Business Standard reported. The company failed to make the interest payment on its guaranteed 2022 senior unsecured notes issued by its subsidiary Jain International Trading BV. The interest payment was due on February 1, 2020, and the 30-day grace period ended on March 3, 2020, S&P said in a statement.

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India seized the beleaguered Yes Bank Ltd., capped withdrawals and imposed curbs on its operations, pledging to implement a rescue plan within 30 days as the lender’s woes threatened to destabilize the financial system, Bloomberg News reported. The Reserve Bank of India ordered the lender not to extend new loans or make payments for its liabilities, according to a statement. It also curbed withdrawals to 50,000 rupees ($682) for the next 30 days. The overthrow of Yes Bank’s board will help authorities implement a revival plan after numerous attempts by the lender to raise capital failed.

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The Mumbai bench of the National Company Law Tribunal (NCLT) has admitted Rajahmundry Godavari Bridge, a subsidiary of Gammon Infrastructure, for Corporate Insolvency Resolution Process (CIRP), The Financial Express reported. Vishal Ghisulal Jain has been appointed as the resolution professional for the process. The company (RGBL) had entered into a concessions agreement with Andhra Pradesh Road Development Corporation (APRDC) for design, construction, finance, operations and maintenance of a 4.15-kilometre long four-lane bridge across the river Godavari.

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Kristalina Georgieva, the managing director of the IMF, unveiled a $50bn package of emergency financing for countries stricken by the coronavirus, saying the multilateral lender wanted to ensure “that people are not going to die just because of lack of money,” the Financial Times reported. The IMF’s move came as it warned that the rapidly expanding outbreak would force it to cut its global economic growth forecast to below the 2.9 per cent rate recorded last year, although it was unclear by how much.

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An Indian irrigation company has been cut to default by S&P Global Ratings after it failed to pay interest on its green dollar bond, in a further sign that stress among local firms is spilling over into the nation’s offshore debt market, Bloomberg News reported. Jain Irrigation Systems Ltd. missed an interest payment due last month on the $200 million of notes maturing in 2022, issued by its unit Jain International Trading BV. S&P said that it cut its rating on the company and the notes to D after the 30-day grace period for meeting the obligation ended March 3.

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India’s top builder is marketing a complex debt offering that it needs to complete successfully to avoid a default, Bloomberg News reported. The new bond from Lodha Developers International Ltd. will be key for it to refinance its existing $324 million note maturing March 13. The company also needs to meet conditions involving setting aside cash before it can tap the proceeds of the bond. “We feel very good about the level of interest and commitments we have so far,” said Abhishek Lodha, chief executive officer of Macrotech Developers Ltd., which is the flagship company of the Lodha group.

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