Link: https://links.sgx.com/1.0.0/corporate-announcements/QKZ02JNUFN6KGJ59/967ecf94b43ceba0ffaec43acbb94350e9fe33cd3713a4117321ec232bd5507a

Summary:

• Issuer (WLB Asset II D Pte. Ltd.) remains fully compliant; last coupon successfully paid June 21, 2025, with next due December 21, 2025.

• Portfolio stands at US$45 million across 9 loans in East Africa, South Asia, and Southeast Asia; 75% performing as of June, down to 65% after August 2025 due to default events.

• Major defaults: Kinara Capital (India, SME lender) defaulted on interest (Aug 2025); Aviom India Housing Finance in insolvency with board superseded and claim filed; Lenana Innovative Solutions (Kenya) also in payment default.

• Bina Artha Ventura (Indonesia, microfinance) entered into a restructuring and showed improving asset quality, with new equity infusions and first quarterly profit in 18 months.

• Svasti Microfinance (India) breached multiple loan covenants; restructured repayment plan under review after default interest imposed.

• Sector risks: Microfinance in India and Cambodia faces challenges from weather, market volatility, and post-COVID strains; Indonesia saw borrower unrest; geopolitics, asset quality, and inflation pose broader portfolio risks.

• No claims filed under portfolio’s US/Sweden partial guarantee structure; guarantee does not provide direct bondholder recourse.

• Macro-outlook for 2025 remains positive for Asia overall, but with acknowledged downside from geopolitical volatility, tariff impacts, and sector-specific instability.

• Loan management and creditor action ongoing for troubled borrowers; collection and recovery efforts underway via insolvency processes and litigation where applicable.