Yuan's fall adds US$14b to Asia's foreign debt burden

Singapore

THE record devaluation of the yuan has dragged down almost every currency in Asia. As they drop, the foreign debt bills of the region's companies are rising.

Almost US$1.6 trillion of bonds and loans denominated in dollars and euros across Asia outside Japan and China has just become US$14 billion more expensive for companies that service the debt in their home currency, Bloomberg-compiled data shows. While many borrowers have hedged their exposure, the cost of doing that and repaying interest and principal is going up.