Beyond Horizons
Trailblazing Tales from Asia
Your exclusive gateway to the latest developments across transportation and space, and most importantly, how to finance it all - debt, equity, and defi! We follow and forecast where the money’s at.
Join us as we navigate through the latest roundup to uncover key developments across the region.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**
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The Asia Pacific Renewable Supply Chain Opportunity
According to a study by the Institute for Energy Economics and Financial Analysis (IEEFA), investments in solar and wind energy in the Asia Pacific region could reach USD 770 billion by the second half of this century. The study emphasizes that localizing significant portions of the region's supply chains for solar and offshore wind would enhance the financial viability of these energy sources.
The report by IEEFA focuses on seven Asian markets: Japan, South Korea, Malaysia, Taiwan, Vietnam, Philippines, and Indonesia
Access the report here.
Events
U.K.
Farnborough International Airshow 2024 (FIA24) will take place from July 22-26, 2024, at the Farnborough International Exhibition & Conference Centre in Hampshire, UK. This biennial event serves as a global platform for the aerospace, aviation, and defense industries, focusing on six key themes: future flight, space, defense, sustainability, innovation, and workforce.
Learn more about the event here.
Singapore
The 2nd ASEAN Battery & Electric Vehicle Technology Conference (ABTC) 2024, scheduled for August 21-23 in Singapore, is a collaborative effort by the Singapore Battery Consortium (SBC), National Center for Sustainable Transportation Technology (NCSTT), and Thailand Energy Storage Technology Association (TESTA). Aimed at fostering a dynamic ASEAN Battery & Electric Vehicle Technology Ecosystem, the conference targets mid-level professionals in manufacturing and production sectors.
Learn more about the event here.
Malaysia
Malaysia International Search and Rescue (MISAR) is organizing the 10th International Search & Rescue Conference & Exhibition under the theme "Global Resilience: Uniting Technology & Humanity for Safer Communities." The event is scheduled to take place from 9th to 11th September 2024.
Learn more about the event here.
Summary
Finance and Investments: Taiwan's Cathay Life Insurance Issues $600M Subordinated Bonds; BYD Acquires 20% Stake in Thailand's Rever Automotive; SMBC Aviation Capital Secures $1.5B Global Syndicated Facility; Air India Launches South Asia's Largest Flight School in Maharashtra; Vietnam Airlines Secures Three-Year Loan Extension for VND4 Trillion; and Plaza Premium Group Announces $300M Investment Plan
Environmental Sustainability: China Launches Sustainable Aviation Fuel Technical Center in Chengdu; Korean Air Expands SAF Program with CEVA Logistics; Philippines Develops Roadmap for Sustainable Aviation Fuel; Japan Develops Stricter Regulations for Sustainable Aviation Fuel; DHL Express Partners with BPI for GoGreen Plus Service; and Google Acquires Stake in Taiwan's NGP Solar Power Company
Aviation: Sri Lanka and Singapore Discuss Collaboration in Maritime and Aviation Sectors; Malaysia Highlights Concerns About its Aviation Sector; Chengdu Airlines Launches New High-Altitude Route with ARJ21 Regional Jet; Chengdu Opens New FBO Facility for Aviation Services; Xpeng AeroHT Plans to Introduce Flying Car Priced at $200,000; and Aerofugia Completes Major Funding Round for AE200 eVTOL Aircraft
Advanced Air Mobility: SkyDrive and JR Kyushu Partner to Promote Tourism with Flying Cars and Trains; Xpeng AeroHT Plans to Introduce $200,000 Flying Car; Aerofugia Completes Major Funding Round for AE200 eVTOL Aircraft; and EHang Signs MoU with CSGAC to Combine eVTOL Technology with Aviation Operations
Marine: France's LDA Orders Crew Transfer Vessels from Singapore's Strategic Marine; FueLNG Completes 200th LNG Bunkering Operation in Singapore; Singapore Reports 90% Off-Schedule Container Ships Arriving; and South Korea Announces $1.44B Investment for Shipbuilding Technologies
Finance & Investments
Taiwan
Cathay Life Insurance, Taiwan's largest life insurer, successfully issued $600 million in 10-year overseas subordinated corporate bonds, marking the first such issuance by a Taiwanese insurance company in the international bond market. The bonds were oversubscribed approximately three times.
Priced at a coupon rate of 5.95%, with a yield of 5.988%, the issuance was managed through its subsidiary Cathaylife Singapore. Funds/asset management companies dominated investor distribution with 72%, followed by insurance/retirement funds at 17%.
💡The funds raised will bolster Cathay Life's financial structure and capital adequacy ratio. Fitch Ratings assigned the bonds a 'BBB+' rating, one notch below Cathay Life's IDR.
Thailand
Chinese electric vehicle (EV) maker BYD is acquiring a 20% stake in Rever Automotive, its local distributor in Thailand. Thailand is BYD's largest market outside of China, where it leads in EV sales.
BYD recently inaugurated its first Southeast Asian factory in Rayong, with a $490 million investment, aiming for an annual production capacity of 150,000 vehicles and employment of 10,000 workers.
💡Rever Automotive, operating over 100 showrooms in Thailand, began selling BYD vehicles in 2022, quickly establishing BYD as the top-selling EV brand in the country. As of Q1 2024, BYD holds a 46% share of Thailand's EV market and ranks third in overall passenger car sales, according to Counterpoint research.
Global
SMBC Aviation Capital has secured a $1.5 billion global syndicated finance facility, involving 29 financial institutions with significant participation from new lenders. This 5-year deal includes a $375 million term loan and a $1.125 billion revolving credit facility, providing substantial operational flexibility.
💡The syndication involved banks from America, Asia, Australia, Europe, and the Middle East, underscoring broad regional support and strategic financial structuring.
India
Air India is establishing South Asia's largest flight training school in Maharashtra's Amravati district with an investment exceeding ₹200 crore (approx. USD24 million). Operated in collaboration with the Maharashtra Airport Development Company (MADC), the Flying Training Organisation (FTO) at Belora Airport will train up to 180 commercial pilots annually.
Authorized by the Directorate General of Civil Aviation (DGCA), the facility will span 10 acres and feature state-of-the-art amenities including digital classrooms, a maintenance unit, and international-standard hostel facilities.
💡The FTO, managed by Air India under a 30-year agreement with MADC, aims to contribute significantly to Maharashtra's economy, generating over ₹1000 crore and fostering job creation across various sectors. It will be operational by Q1 FY26.
Vietnam
Vietnam Airlines has secured a three-year extension on government loans totaling VND4 trillion (USD158 million), originally due later in July 2024, as reported by Bloomberg. Approved by Vietnam's National Assembly, the extension now moves the repayment deadline to July 2027. The decision comes amidst financial challenges for the airline, including substantial losses totaling VND35 trillion (USD1.38 billion) over the past three years.
💡The extension aims to provide Vietnam Airlines with additional time to implement its restructuring program and stabilize its financial position.
APAC & Middle East
Plaza Premium Group (PPG) has announced a US$300 million investment plan spanning three years, targeting strategic market expansion, research and development, sustainable practices, talent development, and product diversification.
Key initiatives include bolstering presence in top global airports, particularly in APAC and the Middle East, advancing technology through an innovation hub in Hong Kong, enhancing sustainability efforts under a new Global ESG lead, fostering a diverse workforce, and launching OneTECO, a unified digital platform for airport hospitality services.
💡PPG aims to capitalize on its recent growth momentum, expanding its footprint to over 250 locations in 30 countries with plans for further expansion in 2024.
Environmental Sustainability
China
The Civil Aviation Authority of China (CAAC) has launched a sustainable aviation fuel (SAF) technical center in Chengdu, aimed at setting standards, conducting research, and promoting green jet fuel usage.
💡China anticipates becoming a key SAF producer in Asia-Pacific, with over $1 billion invested by private firms in new projects nationwide. The country leads globally in exporting used cooking oil and raw materials for SAF production, primarily to the EU and US markets.
Korea
Korean Air has expanded its SAF program in collaboration with CEVA Logistics at the Air Cargo China Conference 2024. CEVA Logistics will assist Korean Air in using SAF for its air cargo operations, with Korean Air sharing carbon emission reductions as part of the agreement. Both companies aim to promote SAF usage and raise awareness about reducing carbon emissions in the logistics industry.
💡In February 2022, Korean Air became the first Korean flag carrier to use SAF on its Paris – Seoul Incheon route. Additionally, the airline signed an MOU with Shell in September 2022 to procure SAF at key airports across Asia Pacific and the Middle East from 2026 to 2031.
Philippines
The Philippines government is actively developing a domestic roadmap for SAF to promote local production of renewable jet fuels. This initiative, announced during a German-Philippine conference, aims to finalize the roadmap by July. The Department of Energy (DOE) and Department of Science and Technology (DOST) are leading efforts, with the DOST Industrial Technology Development Institute playing a key role in research.
💡Improved regulatory frameworks and policy enhancements are fostering increased investment interest in the country's green energy sector.
Japan
Japan is developing stricter regulations for domestic SAF producers to ensure that renewable fuel production effectively reduces greenhouse gas emissions. Led by the Ministry of Trade and Industry, a new proposal is under consultation with local SAF producers. Japan has set a target for domestic airlines to achieve a 10% SAF blending rate in jet fuel consumption by 2030.
💡The proposal aims to diversify SAF production beyond the Hydroprocessed Esters and Fatty Acids (HEFA) pathway, exploring alternatives such as alcohol-to-jet and synthetic fuels. Currently, most SAF projects in Japan focus on HEFA to meet the country's increasing demand for sustainable aviation fuels.
Philippines
DHL Express has partnered with Bank of the Philippine Islands (BPI) to integrate them into its GoGreen Plus Service,which uses SAF to reduce BPI's shipping document greenhouse gas emissions by 90%. Launched in 2023, GoGreen Plus allows businesses across Asia Pacific (excluding China) to lower their carbon footprint from air freight.
💡Over 12,000 customers have adopted GoGreen Plus, with more than 2,800 companies committing to the service through contracts, facilitated via DHL Express's MyDHL+ online platform for shipping and tracking.
Taiwan
Google has acquired a stake in New Green Power (NGP), a Taiwanese solar power company backed by BlackRock's Climate Infrastructure fund. The undisclosed investment is part of Google's strategy to secure up to 300MW of renewable energy. NGP is a prominent solar developer and operator in Taiwan.
💡The move underscores a broader trend among major corporations responding to investor pressure to address climate change. In Taiwan, where Google has significant cloud infrastructure, fossil fuels currently dominate 85% of power generation.
Aviation
Sri Lanka-Singapore
High Commissioner Senarath Dissanayake of Sri Lanka met with Minister Chee Hong Tat of Singapore last month to discuss potential collaborations in maritime, port development, and aviation sectors. The meeting in Singapore highlighted Sri Lanka's plans to transform Colombo Port into a green and eco-friendly facility by 2030, focusing on renewable energy sources and aligning with a blue ocean economy framework.
Minister Chee outlined Singapore's efforts in maritime decarbonization and digitalization, emphasizing global port networks using cleaner fuels. They discussed Sri Lanka joining Singapore's Green-Digital Shipping Corridor and exploring SAF production.
💡High Commissioner Dissanayake sought Singapore's support in training Sri Lankan officials, leveraging Singapore's expertise in port and aviation sectors through training programs offered by Singaporean authorities.
Malaysia
Finance Minister II, Datuk Seri Amir Hamzah Azizan, highlighted concerns about Malaysia's aviation sector during a parliamentary session. He noted that Malaysia's aviation industry contributes only 3.5% to the GDP, contrasting sharply with Singapore's 12% and Thailand's 16%. He emphasized a decline in long-haul flight routes from Kuala Lumpur compared to regional competitors like Singapore and Thailand, which have seen increases in their international connectivity.
💡Amir Hamzah stressed the need for Malaysia to enhance its airport connectivity to boost tourism and attract investment, citing disparities in flight options and international awards won by Malaysian airports compared to regional counterparts. He underscored the urgency for strategic changes to prevent further lagging behind in the region's aviation sector
China
Chengdu Airlines has launched a new high-altitude route for the domestically-developed ARJ21 regional jet, connecting Kashgar to Tashkurgan Tajik Autonomous County. Operating as flights EU3079/3080 three times a week, the route spans the eastern Pamir Plateau, enhancing regional connectivity.
💡Chengdu Airlines operates 9 ARJ21s across Xinjiang, serving over 40 routes at 24 airports under its "Frontier Express" network. This initiative supports tourism, business, and economic growth in Xinjiang.
China
Chengdu recently opened a new Fixed-Base Operator (FBO) facility operated by Sichuan Huahui Business Aviation Services Co., Ltd., established through a partnership between Sino Jet and Sichuan Airport Group in April 2023. The FBO aims to enhance regional aviation services, promote economic growth, and support eVTOL operations in the area.
💡In April 2023, Sino Jet committed to buying 100 AE200 eVTOL aircraft from Aerofugia and to work together on establishing airworthiness standards.
Advanced Air Mobility
Japan
Japanese startup SkyDrive Inc. and Kyushu Railway Co. (JR Kyushu) have entered into a collaboration agreement aimed at leveraging flying cars and trains to boost tourism and local economies in southwestern Japan's Kyushu region.
💡SkyDrive CEO Tomohiro Fukuzawa expressed optimism about the role of flying cars in enhancing transportation options in underserved areas, aiming for commercial deployment of their three-person flying car by 2026.
China
Xpeng AeroHT, a subsidiary of Chinese EV manufacturer Xpeng, plans to introduce its first flying car priced at approximately $200,000 by the end of next year. Co-founder and chief designer Wang Tan announced this during a panel discussion at the South China Morning Post’s China Conference. The company aims to begin mass production within two years, targeting sales of 5,000 units. Initially, sales will commence in mainland China before expanding to global markets such as the Middle East and Hong Kong.
💡An exact release date for the flying car has not been specified yet.
China
Geely subsidiary Aerofugia recently completed its largest single funding round with a Series B financing of hundreds of millions of yuan. Chengdu High-tech Ceyuan Investment Group Co., Ltd led the round. The funds will primarily support the research, development, and commercialization of Aerofugia's AE200 eVTOL aircraft, aimed at advancing urban air transportation and the low-altitude economy.
💡Aerofugia has now concluded three rounds of financing, including two from the previous year.
China
EHang and China Southern Airlines General Aviation Company Limited (CSGAC) have signed a Memorandum of Understanding (MoU) to combine EHang's pilotless eVTOL technology with CSGAC's aviation operations and infrastructure expertise. The partnership aims to innovate solutions for the low-altitude economy.
Key initiatives include establishing operation demonstration sites for EHang's EH216-S eVTOL aircraft at Zhuhai Jiuzhou Airport and Zhuhai Chimelong Ocean Kingdom. These sites will showcase low-altitude tourism flights and experiential activities.
💡The collaboration will also explore diverse eVTOL applications in nearby islands, focusing on inter-island cargo transportation, emergency response, and medical rescue services.
Marine
France-Singapore
Louis Dreyfus Armateurs (LDA), a French family-owned shipowner, has ordered two 27-meter crew transfer vessels (CTVs) from Strategic Marine in Singapore. The vessels, based on the StratCat 27 design, will expand LDA's fleet from five to seven CTVs and are designed to transport 24 passengers to offshore wind farms.
💡Scheduled for delivery in early 2025, the order supports LDA's strategy to grow its offshore renewables business in France and Europe. Strategic Marine's CEO noted successful deployments of similar vessels in Europe, Taiwan, and Korea, reflecting their adaptability to diverse markets.
Singapore
FueLNG, a leader in LNG bunkering in Singapore, has completed its 200th ship-to-ship (STS) LNG bunkering operation.The milestone involved supplying 9000 m3 of LNG fuel to the CMA CGM Bahia at the Raffles Reserve Anchorage in Singapore.
💡The vessel is equipped with engines ready for biomethane and e-methane, highlighting advancements in decarbonizing shipping. FueLNG credits its success to collaboration with stakeholders like Seatrium, Shell, and CMA CGM, along with support from the Maritime and Port Authority of Singapore (MPA).
Singapore
Transport Minister Chee Hong Tat disclosed in a parliamentary response on July 2, 2024, that nearly 90% of container ships arriving in Singapore are off-schedule, up from 77% in 2023, as reported by Xinhua News. The increase is attributed to the Red Sea crisis, which has compelled vessels to navigate longer routes around the Cape of Good Hope between Europe and Asia.
The global shipping disruption has impacted schedules worldwide, particularly affecting Singapore as a critical transhipment hub. The influx of container ships has prolonged port stays, causing congestion and necessitating the activation of additional berths and yard space.
💡Despite these challenges, Singapore's container throughput grew by 7.7% from January to May, underscoring its resilience and pivotal role in global trade.
South Korea
South Korea has announced a 2 trillion won ($1.44 billion) investment plan aimed at advancing smart and clean energy technologies in the shipbuilding industry over the next decade. Part of the "K-Shipbuilding Hyper-Gap Vision 2040" strategy, the initiative aims to develop cutting-edge ship technologies including fully autonomous navigation and zero-carbon engines.
💡The effort seeks to bolster South Korea's position as a leader in marine engineering by reducing dependence on foreign technologies and enhancing production efficiency through automation. The plan includes flagship projects such as liquefied carbon dioxide carriers and onboard carbon capture systems.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**