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Greenko’s bond shows how to capitalise on one of the country’s recent foreign investment reforms

The programmes have been at the forefront of outbound investment. But have foreign asset managers made the most of the reforms?

Wataru Matsumoto The Guidelines Regarding Executive Guarantees (Guidelines), which aim to reduce dependence on guarantees provided by executives in Japanese small and medium sized companies (SME), became effective in February 2014. Despite not having legally binding power, the Guidelines are considered to have the potential to alter the nation's finance practice, which has hindered smaller enterprises from implementing early turnaround and restructuring of their businesses. Traditionally, much of the financing provided to Japanese SMEs (especially those managed by sole owners or their relatives) must be accompanied by joint and several guarantees by the executives of such companies, such as a president or representative director. On the one hand, those unlimited liabilities have facilitated financing for start-up businesses that are less resourceful in their own properties. On the other hand, they have made it difficult for executives to take drastic measures due to the fear of losing their private assets (typically houses) by the execution of guarantee obligations if the companies find themselves in financially distressed circumstances where such drastic measures might, in the long term, have been prudent.

Panagiotis Drakopoulos Mariliza Kyparissi Recent amendments to Greek legislation on commercial leases provide for shortened minimum lease terms (three-year statutory minimum) and early termination clauses. This affects the Greek real estate market and raises business and investment expectations. New provisions invite a more market-friendly and business-oriented approach, restricting the previous protective framework for the lessee, and granting an enhanced set of powers to the lessor, in the hope of reversing the idle investment climate in the Greek market. The recently introduced lease term and termination clauses favour market mobility, allowing for more flexible arrangements among parties and preventing properties from staying locked down over long periods of time. Before their final investment move, investors are now able to explore opportunities with high growth potential and may freely negotiate and agree on prices, terms and conditions of the lease agreement, achieving predictability in their business planning. It is expected that the successful implementation of the new law on commercial leases will lead to the creation of new investment schemes. It aims to attract the interest of real estate investment companies (REICs) and other institutional and individual investors seeking to expand their investment scope and main activities. Single investors or investment groups should therefore opt to expand their activity in a growing real estate market, invest in commercial and tourist property, promising real estate development projects, and vacant units and unused commercial premises, taking advantage of the flexible provisions and boosting real estate portfolios' valuations. Therefore, commercial real estate property of previously limited demand, such as secondary retail, warehouses and non-prime office buildings, should be successfully targeted by domestic and foreign investors through the emergence of investment schemes, securing the recovery of the property market and boosting its flexibility and mobility.

Julian Traill, Norton Rose Fulbright London saw its fair share of lateral hires over summer, with WILLKIE FARR & GALLAGHER leading the pack. In July the US firm hired Matthew Dean and Claire McDaid from Kirkland & Ellis. The two partners will launch Willkie's private equity practice. Another notable corporate hire in the city saw MORGAN LEWIS & BOCKIUS lure David Ramm from Edwards Wildman. Ramm headed his previous firm's business law department. It's the latest blow for Edwards Wildman, which has suffered a number of recent exits. In other practice areas, project finance partner Julien Bocobza switched Shearman & Sterling for CHADBOURNE & PARKE, equity capital markets partner Daniel Simons moved from Travers Smith to HOGAN LOVELLS, and Pinsent Masons' finance partner Matthew Heaton moved to REED SMITH.

Oene Marseille Emir Nurmansyah The Indonesia Finance Ministry has issued Minister Regulation 137.1/PMK.011/2014 on July 7 2014, imposing a tariff on the importation of certain iron and steel products into Indonesia. This Regulation is issued following recommendations from the Trade Safeguard Committee of Indonesia (KPPI). The KPPI determines that the tariff is necessary to prevent serious injury that are deemed to have arisen from increased importation of steel and iron products into the country. The KPPI states that steel importation into Indonesia has increased from 79,279 tons in 2008 to 251,315 tons in 2012 and found a causal relationship between the increase and the threat of serious injury.

Diego Alejos Financing in Guatemala has seen a recent expansion in the different options offered by financial institutions, national and foreign, to Guatemalan companies. This has allowed Guatemalan corporations to expand their operations by having a wide portfolio of finance products from which to select the most adequate means of acquiring the funds to develop their operations. Traditionally in Guatemala, corporations, both national and foreign, have obtained their financing from Guatemalan financial institutions; they have tended to enter into traditional options such as Lombard credits, syndicated loans and in some cases project finance. However, these options did not meet the funding needs required by corporations. In some cases, the limits imposed on Guatemalan financial institutions by law regarding the concentration of investments and contingencies restricted the funding offered to corporations. In other cases, the financing structure offered to the corporations by the financial institutions did not meet the corporation's needs. This situation changed to some extent with the entering of foreign financial institutions into the Guatemalan financial market, as the limits regarding the concentration of investments were somewhat lessened, allowing for bigger loans and financing.

Lei Wun Kong Nuno Soares da Veiga Following the enactment of the Foreign Account Tax Compliance Act (Fatca) by the US Government, financial institutions in the Macau SAR are analysing the impact of complying with it. Under Fatca, foreign financial institutions (FFIs) are required to report information directly to the Internal Revenue Service (IRS) regarding the accounts of customers who are treated as US persons for US tax purposes, and customers who have been identified as having links to the US. Moreover, Fatca provides that non-compliant FFIs will be subject to a 30% withholding tax on their US investments and US-source income. While the purpose of Fatca may be to combat the tax evasion of US taxpayers, compliance with Fatca poses a challenge to Macau financial institutions striving to comply with local laws, in particular the Financial System Act (FSA).

Investors must push back against Asia's weakening high-yield covenant packages. Although investor protections remain robust – especially compared to what's seen in the US and Europe – the region's legal frameworks are much less established.

The restructure of Suzlon Energy’s foreign currency convertible bonds is the largest in India to date. It also demonstrates that offshore bondholders and onshore lenders can reach a solution together