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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Law Firm Climate Change Scorecard
The Law Firm Climate Change Scorecard, created by LSCA student leaders, annually ranks the "Vault 100" law firms based on their engagement in fossil fuel work over a five-year period. Its purpose is to highlight law firms' roles in supporting fossil fuel projects and encouraging them to transition towards a sustainable future. The 2024 Scorecard, launching during London Climate Action Week on June 24th, will feature multinational data from the U.S., U.K., and Ireland.
This year's findings show a slight decrease in fossil fuel transactions and an increase in renewables, reflecting a shift driven by students and young attorneys towards sustainability in legal careers.
Learn more here.
Stratas Advisors’ UCO (Unknown Cooking Oil) Publication
Europe's consumption of used cooking oil (UCO) for biofuels has surged to 7 million tonnes annually, highlighting a heavy reliance on imports, primarily from Asian countries like China, Indonesia, and Malaysia. Despite the continent's potential to collect up to four times this amount, current collection rates fall short.
On 28 June, the European Commission is scheduled to announce its decision on whether to impose anti-dumping measures on Chinese biodiesel.
Meanwhile, the United States, after implementing Biden's Inflation Reduction Act, now consumes 40,000 barrels of UCO per day, further increasing global demand. This trend has led to challenges in sustainability as airlines also join the market, exacerbating the gap between supply and demand.
Analysts from Stratas Advisors provide insights into trade dynamics, economic impacts, and future limitations of UCO biofuels in a recent report reviewed by T&E.
Summary
Finance & Investments: Singapore and Cambodia Launch FTC Initiative to Boost SME Financial Cooperation; Avolon Secures $750 Million Credit Facility to Expand Aviation Finance Reach; SIA Engineering and Eaton Form JV for Aircraft Component Services in Malaysia; and ST Engineering Commences Construction of New Maintenance Hangar in Pensacola
Fintech: Mbanq Partners with IG Tech Cambodia to Launch BaaS Venture; and Carro Secures $55.5 Million Loan from HSBC for Genie Financial Services Expansion
Cryptocurrency: India's FIU Fines Binance $2.25 Million for AML Violations Amid Regulatory Scrutiny
Artificial Intelligence: CCI Initiates Market Study on AI Impact on Competition in India; KKR, Singtel Invest $2.2 Billion in ST Telemedia Global Data Centers; and Orca AI Study: AI Navigation Could Cut Global Shipping Emissions by 47 Million Tonnes
Environmental Sustainability: KazMunayGas Partners for Sustainable Aviation Fuel Production in Kazakhstan; BLR Airport Introduces 175 Electric Taxis to Enhance Sustainability; and CSMIA Implements Scrubber Dryer Robots for Enhanced Terminal Cleanliness
Aviation: airBaltic Training Expands Fleet with Purchase of Diamond Electric Aircraft; Textron Aviation Expands Australian Presence for Enhanced Customer Support; Lufthansa Technik Inaugurates Aircraft Component Warehouse at Narita Airport; and SR Technics Secures Five-Year Agreement with Skymark Airlines
Advanced Air Mobility: Ehang and Wencheng County Collaborate on Urban Air Mobility in Zhejiang; and SkyDrive Pursues FAA Certification for SD-05 eVTOL Following Application Acceptance
Marine: Hanwha Systems and Hanwha Ocean Acquire Philly Shipyard for $100 Million; Northern Territory Invests $6.9 Million in Inverell Bay Marine Facilities; and Orca AI Study: AI Navigation Could Cut Global Shipping Emissions by 47 Million Tonnes; South Korean Industry Leaders Collaborate on R&D Alliance for LH2 Carriers; and Deep Wind Offshore Partners to Develop Offshore Wind Workforce in Jeollanam-do
Space: Joint Sino-French SVOM Mission Launches to Study Gamma-ray Bursts; GomSpace Secures Satellite Contract Financing with Indonesia's Ministry of Marine Affairs & Fisheries; and mu Space Teams with ITEL to Boost Satellite Connectivity in Thailand
Finance & Investments
Singapore-Cambodia
The Monetary Authority of Singapore (MAS) and the National Bank of Cambodia (NBC) have launched the Financial Transparency Corridor (FTC) initiative to strengthen financial cooperation, particularly benefiting small and medium-sized enterprises (SMEs).
The FTC, facilitated by Proxtera Pte Ltd, connects financial institutions in Singapore and Cambodia through a consent-based digital infrastructure. The platform aims to improve data accessibility, enhance credit risk assessments, and facilitate SME trade financing between the two countries.
💡Initial participants include banks and financial entities from both Singapore and Cambodia, with plans to expand participation and explore opportunities in green finance and trade finance in future phases.
Global
Global aviation finance company Avolon has successfully raised US$750 million through a new unsecured credit facility with a syndicate of seven banks predominantly from the Middle East and India. The move diversifies Avolon's funding sources, tapping into new liquidity opportunities in the aviation sector.
The facility, initially set for three years with the option to extend to five years, was arranged by JP Morgan and Emirates NBD as joint bookrunners.
In 2024 alone, Avolon has raised over US$3.4 billion from a mix of public and private funding sources. As of March 31, 2024, Avolon maintains liquidity of US$6.6 billion, with a net debt to equity ratio standing at 2.2 times.
💡The funds raised will be utilized for general corporate purposes, reinforcing Avolon's financial flexibility and growth strategy in aviation finance.
Malaysia
SIA Engineering Company (SIAEC) and Eaton have established a joint venture named Eaton Aerospace Component Services Asia Sdn Bhd in Malaysia. SIAEC holds a 49% equity stake while Eaton holds 51%, with plans to increase initial capital to approximately USD 16 million.
The JV will specialize in maintenance, repair, and overhaul of Eaton-manufactured aircraft components for airframe, engine fuel systems, and hydraulic systems in the Asia-Pacific region.
💡The move expands SIAEC's portfolio to 24 subsidiaries and joint ventures across eight countries, strengthening its position as a leading provider of MRO services with a client base including over 80 international carriers and aerospace manufacturers.
Singapore-USA
ST Engineering has begun construction on its third aircraft maintenance hangar at Pensacola International Airport. The new state-of-the-art facility spans 167,000 square feet and includes two bays capable of servicing widebody aircraft. Upon completion in the second half of 2026, it is anticipated to add 500,000 manhours annually.
💡The hangar is part of ST Engineering’s planned airframe Maintenance, Repair & Overhaul (MRO) complex in Pensacola, which will ultimately consist of four hangars. The project is expected to create over 1,700 jobs once fully operational and is supported by funding from ST Engineering, Triumph Gulf Coast, Inc., the City of Pensacola, Escambia County, the State of Florida, and other state and federal entities.
Fintech
US-Cambodia
US-based Mbanq has partnered with IG Tech Cambodia to establish IG Finlink Cambodia, with Mbanq holding a majority ownership stake. The partnership marks Mbanq's entry into the ASEAN banking technology and Banking-as-a-Service (BaaS) markets, beginning with Cambodia, with plans to expand across Southeast Asia, including Singapore, Malaysia, Thailand, Indonesia, and Vietnam.
Mbanq aims to provide comprehensive BaaS solutions and digital banking technology tailored for local, regional, and international banks, as well as embedded finance solutions for various brands.
💡The partnership with IG Tech Cambodia will focus on four key areas: delivering BaaS and digital banking platforms, embedded banking solutions, establishing a Global FinTech Training Centre, and expanding technology development initiatives.
Singapore
Carro, a Singapore-based used-car marketplace, has secured a US$55.5 million multi-currency loan from HSBC to support its fintech arm, Genie Financial Services. The funding makes Carro the inaugural client to access HSBC's US$1 billion ASEAN Growth Fund.
Genie Financial Services provides financing for Carro's customers across Singapore, Malaysia, Indonesia, and Thailand. Carro, which is preparing for an IPO and operates in seven markets including recent expansions into Hong Kong and Japan, reported nearly US$1 billion in revenue for the financial year ending March 2024, with significant EBITDA growth.
💡The loan from HSBC adds to Carro's existing liquidity, which stood at approximately US$259 million in the latest financial year.
Cryptocurrency
India
India's Financial Intelligence Unit (FIU) has fined Binance 188.2 million rupees ($2.25 million) for violating the country's Anti-Money Laundering (AML) rules while servicing Indian clients. The penalty, announced on June 19, 2024, resulted from Binance's failure to comply with the Prevention of Money Laundering Act (PMLA) by not maintaining adequate transaction records and implementing required AML measures.
The move follows earlier bans on Binance and other offshore crypto exchanges in India for operating illegally, despite Binance later gaining conditional approval in May after paying a penalty.
💡Globally, Binance faces regulatory scrutiny and penalties, including a $4.4 million fine in Canada and legal issues in Nigeria.
Artificial Intelligence
India
The Competition Commission of India (CCI) has initiated a comprehensive market study focused on artificial intelligence (AI) and its impact on competition, reported India Business Law Journal.
The study aims to explore AI's transformative potential, assessing both its procompetitive benefits and potential challenges across various industries. Key objectives include understanding AI systems and market ecosystems, identifying stakeholders, evaluating competition issues in AI markets, and analyzing regulatory frameworks.
💡The study will engage stakeholders to gather insights and inform CCI's enforcement and advocacy strategies related to AI and competition in India.
USA- Singapore
Reuters has reported that U.S. private equity firm KKR and Singtel have partnered to invest an initial S$3 billion ($2.2 billion) in ST Telemedia Global Data Centers (STT GDC), marking Southeast Asia's largest digital infrastructure investment of the year. The investment involves acquiring S$1.75 billion in redeemable preference shares with detachable warrants, potentially injecting an additional S$1.24 billion.
The transaction will give KKR a 14.1% stake and Singtel a 4.2% stake in STT GDC, a leading global data center operator with 95 facilities across 20 markets.
💡The funds will support STT GDC's international expansion amid rising demand for digital infrastructure driven by cloud computing and AI applications.
Global
Orca AI, an autonomous shipping startup, conducted a study showing that deploying artificial intelligence (AI) for sea navigation in the global commercial shipping industry could potentially reduce carbon emissions by 47 million tonnes annually. The technology would minimize maneuvers and route deviations caused by encounters with high-risk marine targets like vessels, buoys, and sea mammals.
Currently, shipping accounts for approximately 90% of global trade movement and contributes nearly 3% of the world's carbon dioxide emissions. Orca AI's report indicates that utilizing AI could cut down route deviations by 38.2 million nautical miles per year, resulting in approximately $100,000 in fuel savings per vessel. Moreover, AI has the potential to decrease close encounters by 33% in open waters.
+The International Maritime Organization has set a target to reduce emissions by 20% by 2030, although this goal is at risk due to ongoing environmental challenges such as the Red Sea crisis.
Environmental Sustainability
Kazakhstan-Japan
Kazakhstan's KazMunayGas (KMG) is collaborating with Air Astana, LanzaJet, and Mitsui to explore the production of Sustainable Aviation Fuel (SAF) in Kazakhstan, as reported by SAF Investor. The initiative follows a completed feasibility study supported by the European Bank for Reconstruction and Development (EBRD), aiming to establish a SAF production facility. Air Astana plans to increase SAF usage to 5% by 2040, scaling up to 25% by 2060 as part of its low-carbon strategy.
💡LanzaJet's recent SAF production facility in the US underscores global interest in sustainable aviation fuels.
India
Kempegowda International Airport Bengaluru (BLR Airport) has launched a new fleet of 175 electric vehicle (EV) airport taxis in collaboration with Refex eVeelz. The compact SUVs represent a shift towards sustainability by replacing traditional fuel-based taxis. Travellers can book EV taxis via airport stands or the BLR Pulse mobile app.
💡The taxis are available in teal to symbolize sustainability and pink for female passengers, operated by female drivers. Safety measures include a "Pink Card" with emergency contacts for enhanced passenger security.
India
Chhatrapati Shivaji Maharaj International Airport (CSMIA) has introduced Scrubber Dryer Robots in Terminal 2 to enhance cleanliness and efficiency. The autonomous robots are equipped with advanced Li-Ion batteries, allowing them to operate continuously for up to eight hours and across various temperatures. Currently, two units are deployed, with plans to expand by FY 2025.
The robots operate autonomously but can be remotely controlled and require minimal manual intervention, such as for water refilling. They offer adaptable cleaning modes based on floor types and dirt levels, along with real-time reporting for hygiene performance analysis. Safety features include beacons, speed controls, ultrasonic sensors, and emergency stop switches.
💡CSMIA emphasizes their eco-friendly benefits, saving electricity, water, and reducing chemical usage, aligning with their commitment to sustainability and innovation in airport management.
Aviation
Latvia-China
airBaltic Training, a subsidiary of airBaltic, has signed a letter of intent (LOI) with Diamond Aircraft to acquire three all-electric eDA40 and two DA42-VI aircraft. The acquisition will expand the airBaltic Pilot Academy's fleet to 15 aircraft. The eDA40 features advanced electric motors with high efficiency, a dual winding/controller system for enhanced reliability, and zero emissions with reduced noise levels. The aircraft also incorporates a dual-string battery system and fast charging capability, enabling quick recharges in 20-30 minutes to optimize training efficiency.
💡The eDA40 is set to become the first EASA/FAA-certified electric airplane in its category, marking a significant advancement in zero-emission flight training.
Australia
Textron Aviation announced it is significantly expanding its presence in Australia to enhance service capabilities and parts availability for Cessna, Beechcraft, and Hawker aircraft. Following the acquisition of Premiair Aviation Maintenance in 2020, which has now been rebranded as Textron Aviation Australia Pty Ltd., the company is integrating facilities in Perth, Gold Coast, and Melbourne into its global service network. Customers of Beechcraft, Cessna, and Hawker will benefit from direct factory support, maintenance, and modifications through Textron Aviation's extensive global network, including service centers, mobile units, and 24/7 AOG support.
In Perth, Textron Aviation is relocating its Service Center to a larger facility at Jandakot airport, aimed at expanding service capacity and improving efficiency to minimize downtime for aircraft servicing. The new facility is scheduled to be fully operational by July 2024, offering improved comfort for both customers and employees.
In Melbourne, Textron Aviation is adding 5,000 square feet of new parts storage near Essendon Fields airport, quadrupling previous inventory levels. The expansion will facilitate quicker parts shipments to customers. Additionally, a new in-region parts customer support and warranty team will be established to cater to all Cessna, Beechcraft, and Hawker parts requirements.
💡The expanded Melbourne facility is expected to be fully operational by June 2024.
Japan
Lufthansa Technik has inaugurated its first warehouse in Japan at Narita Airport in Tokyo to cater to the burgeoning market demand. The facility, dedicated to storing aircraft components, marks a strategic expansion of their presence in the Asia-Pacific region.
Positioned at Narita Airport, it aims to expedite the delivery of aircraft parts, enhancing local supply capabilities.
💡Initially serving customers in Japan, Lufthansa Technik plans to extend its services to other countries across the region in the near future, transforming the site into a pivotal hub for material supply.
Japan
SR Technics has signed a five-year agreement with Skymark Airlines, granting exclusive rights to maintain Skymark’s CFM56-7B engines. This extends their existing relationship supporting Skymark's fleet of 29 B737-800 aircraft, which has been ongoing for six years.
💡The agreement solidifies SR Technics' position as a trusted maintenance provider for Japan's first low-cost carrier, ensuring continued service through May 2029.
Advanced Air Mobility
China
EHang has partnered with Wencheng County, Wenzhou City, Zhejiang Province, to develop Urban Air Mobility (UAM) solutions and bolster the low-altitude economy. The collaboration involves Wencheng County committing to purchase 30 EH216-S eVTOL aircraft initially, with plans to expand to 300 units by 2026. Together, they aim to establish a complete industry chain for pilotless passenger-carrying aerial vehicles, focusing on tourism and economic development in scenic areas.
💡Wencheng County intends to pioneer aerial tourism routes by the end of 2024 and aims to become a leading UAM hub by 2026, fostering economic activities exceeding RMB 1 billion.
Japan
Japanese eVTOL developer Skydrive, has initiated efforts to introduce its SD-05 three-seat vehicle into the U.S. market. The company recently began the FAA certification process, with the U.S. aviation safety agency accepting its application for a type certificate on April 29, facilitated through Japan’s Civil Aviation Bureau (JCAB). SkyDrive plans to achieve U.S. approval by validating its Japanese type certificate by 2026.
SkyDrive aims to conduct public flight demonstrations during the 2025 Osaka World Expo, seeking provisional airworthiness approval and permits from JCAB. In preparation, SkyDrive established a U.S. subsidiary in South Carolina in 2023 and secured provisional sales agreements with Austin Aviation and Bravo Air.
💡Manufacturing of SkyDrive’s SD-05 commenced in March at a factory in Iwata City operated by Suzuki Motor Company, capable of producing 100 vehicles annually.
Marine
South Korea-USA
Hanwha Systems and Hanwha Ocean have announced the acquisition of Philly Shipyard, a prominent U.S. shipbuilder known for producing vessels compliant with the Jones Act. Pending regulatory approval, the acquisition involves an investment of $100 million and is part of Hanwha's strategy to bolster its global defense and shipbuilding capabilities.
Philly Shipyard, previously controlled by Norwegian company Aker ASA, has been a key player in the U.S. maritime industry since its establishment in 1997. It specializes in building large commercial ships such as tankers and container vessels, fulfilling the requirements of the Jones Act which mandates domestic vessels be constructed in U.S. shipyards. Additionally, Philly Shipyard manufactures training vessels for the U.S. Maritime Administration (MARAD).
💡The acquisition by Hanwha Systems and Hanwha Ocean aims to expand their presence in the U.S. shipbuilding sector, leveraging Philly Shipyard's expertise and capabilities in naval and commercial ship construction.
Australia
The Lawler Labor Government in the Northern Territory is driving regional economic development by awarding a $6.9 million contract to DTA Contractors for constructing marine and landside facilities at Inverell Bay near Nhulunbuy. The project aims to supports local businesses, including Aboriginal enterprises like Deltareef Pty Ltd and Gulkula Construction, along with KMJ Electrical.
💡Scheduled to commence in August 2024, the project is part of the $9.3 million Gunyangara Tourism Precinct funded jointly by the Australian Government, Northern Territory Government, and Developing East Arnhem Limited, with operations overseen by the Gove Boat Club in collaboration with Ngarrariyal Aboriginal Corporation and Gumatj Corporation.
South Korea
South Korea's top shipbuilders, HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, along with Hanwha Ocean, and steelmakers POSCO and Hyundai Steel, have joined forces with the Korean Register in a strategic R&D alliance focused on liquefied hydrogen (LH2) carriers. The collaboration, formalized through a memorandum of understanding (MOU) signed on June 13, aims to develop standardized material testing protocols for LH2 ships.
The alliance's primary objective is to research and validate the material properties necessary for constructing liquefied hydrogen cargo holds, addressing a current lack of international standards in this area. By sharing experimental data and leveraging collective insights, the alliance aims to lead in developing global standards for LH2 carrier design and construction.
💡The initiative follows past challenges faced by South Korea's shipbuilding sector, such as design flaws in the first Korean LNG cargo hold (KC-1), highlighting the need for technological advancement and independence. The collaboration between shipbuilders and steelmakers aims to rectify past issues and enhance South Korea's competitiveness in LH2 carrier technology.
Norway-South Korea
Deep Wind Offshore, based in Norway, has partnered with the Korean Jeollanam-do province and leading maritime universities from Norway and South Korea to enhance the offshore wind workforce. The collaboration aims to develop educational programs, conduct joint research, facilitate student exchanges, and promote personnel exchanges in offshore wind.
💡Deep Wind Offshore is currently involved in developing two large offshore wind projects in Jeollanam-do with BP, each exceeding 1 GW capacity. The province plans to expand its offshore wind capacity significantly and is establishing a hub for the offshore wind industry, including South Korea's first dedicated port for installation and Vestas' turbine production facility.
Space
China
The joint Sino-French SVOM mission launched successfully on June 22 from Xichang Satellite Launch Center in China. It aims to study Gamma-ray bursts (GRBs), which are powerful explosions releasing immense energy in short durations. SVOM is a collaboration between China's CNSA and France's CNES, equipped with French and Chinese scientific payloads including the Microchannel X-ray Telescope (MXT).
💡The mission seeks to detect high-energy radiation from GRBs in X-ray and gamma-ray spectrums.
Denmark-Indonesia
GomSpace has secured a milestone contract with Indonesia's Ministry of Marine Affairs & Fisheries for 20 satellites valued at about 650 MSEK. This achievement includes approval for government export loans facilitated by the Danish Export Credit Agency (EIFO) through a joint venture with Ellipse Projects France, known as EPGS Partners.
The total contract value for EPGS Partners with Indonesia's Ministry is 150 MEUR, of which about 60 MEUR (approximately 650 MSEK) will directly benefit GomSpace.
Looking ahead, negotiations for the loan terms between Denmark and Indonesia are ongoing and are expected to conclude by the third quarter of 2024. Upon finalizing these negotiations, the contract will be formally implemented.
Meanwhile, GomSpace has already begun preparations for the project and remains on track to launch the first satellite by early Q3 2024 as originally planned.
💡GomSpace emphasizes that they will recognize the project as order intake once the loan guarantees between Denmark and Indonesia are finalized. Nevertheless, GomSpace reaffirms their expectation of achieving positive free cash flow for the second half of 2024.
Thailand
mu Space and Advanced Technology (mu Space) has formed a strategic partnership with Interlink Telecom Public Company (ITEL) to bolster Low-Earth Orbit (LEO) satellite connectivity and expand telecom network accessibility in Thailand and beyond. The collaboration, announced through a memorandum of understanding (MoU) on June 17, combines mu Space’s satellite technology expertise with ITEL’s established presence in Thailand's telecom sector, including fiber network services and data center solutions.
💡The partnership aims to leverage synergies between satellite technology and telecom infrastructure to enhance service offerings and customer benefits.
**Nothing in this article is intended to be or should be construed as legal or financial advice.**