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Sovereign Wealth Funds Briefing - Category | Market more

Libya-Goldman clash sheds light on formerly secretive fund

Posted on 21 October 2014 by VRS  |  Email |Print

In 2008, Catherine McDougall was a young Australian lawyer seconded to the Libyan Investment Authority’s offices in Tripoli to assist its legal team and review financial transactions conducted by Goldman Sachs. She was “shocked” by what she learnt, according to her witness statement detailed in a London court earlier this month.
In it, Ms McDougall details a “very angry tirade” allegedly unleashed by Mustafa Zarti, then the deputy director of the LIA, towards Goldman bankers Youssef Kabbaj and Nick Pentreath at the sovereign wealth fund’s 22nd floor offices at Tripoli Towers in a meeting in July 2008………………………………………..Full Article: Source

Qatar fund to buy stake in HK department store operator for $616 mln

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar Holding LLC has agreed to pay $616 million for about one fifth of Lifestyle International Holdings, a department operator in Hong Kong and mainland China - the latest addition of a high-end retail brand to the sovereign wealth fund’s portfolio.
Lifestyle’s stores include a SOGO branded store in Hong Kong’s bustling shopping district of Causeway Bay and four Jiuguang stores on the mainland. A unit of Qatar Holding will pay HK$14.75 per share for the 19.9 percent stake, a 1 percent premium to Lifestyle’s last traded price of HK$14.60, the statement added. Qatar Holding will get one board seat on the completion of the transaction………………………………………..Full Article: Source

Qatar eyes $15bn Greater China spending spree

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar’s purchase of a stake in a Hong Kong department store chain is the beginning of a potential $15bn spending spree targeting Greater China, according to people familiar with the Gulf state’s plans. Qatar Holding, which owns stakes in Harrods, Barclays, Credit Suisse and Canary Wharf Group among others, on Monday said it would pay $616m for a near-20 per cent stake in Lifestyle International Holdings, owner of Hong Kong’s SOGO department stores.
The fund’s parent, Qatar Investment Authority, aims to spend up to $15bn in the medium term to bolster its presence in north Asia, according to people familiar with the matter………………………………………..Full Article: Source

How Qatar funds extremists across the Middle East

Posted on 20 October 2014 by VRS  |  Email |Print

Qatar is the richest country in the world per capita - and has made significant investments into various iconic London landmarks. Its sovereign wealth fund owns Knightsbridge department store Harrods and its property arm has invested substantially in the development of Chelsea Barracks. It also owns the Shard - currently the tallest building in the EU.
However, it has also played a significant role in funding groups across the Middle East who are extremely hostile to the West. It has been providing arms to a group of radical Islamists called “Libya Dawn”, whose allies, Ansar al-Sharia, were responsible for killing US Ambassador Christopher Stevens in an attack on a diplomatic compound in Benghazi in 2011………………………………………..Full Article: Source

Foreign interests trying to exploit my fragile nation, says Timor PM Xanana Gusmao

Posted on 20 October 2014 by VRS  |  Email |Print

Foreign interests are trying to “dominate” East Timor, exploiting the fragility of the tiny nation to deny its rightful share of the oil and gas revenues in the Timor Sea and sow unrest, its Prime Minister says. Xanana Gusmao made the remarks as the fledgling state is embroiled in bitter fights with the Australian government and multinational oil companies over the resources that contribute 90 per cent of its income.
In a rare and wide-ranging interview with Fairfax Media in the Timorese capital, Dili, the former resistance leader and political prisoner also rebuffed suggestions that the country will exhaust its sovereign wealth fund and become effectively bankrupt in a decade………………………………………..Full Article: Source

Temasek-Penang project seeks global names as tenants

Posted on 17 October 2014 by VRS  |  Email |Print

The upcoming mixed-use development in Penang by Temasek and Penang Development Corporation (PDC) is targeting international companies as tenants in a bid to bolster Penang’s role as a major business process outsourcing (BPO) hub.
The Economic Development Innovations Singapore Pte Ltd (EDIS) said that it hopes to draw international names to set up shop in the 2.7 hectare mixed-use site, which is about seven minutes’ drive from the second Penang bridge and the Penang airport………………………………………..Full Article: Source

Oil keeps Kuwait’s economy strong, for now

Posted on 17 October 2014 by VRS  |  Email |Print

Moody’s indicated that Kuwait owns $400 billion worth of assets in its sovereign wealth fund, i.e., twice the GDP. There is no doubt that these assets generate adequate returns to Kuwait, thus consolidating its sovereign revenues. Kuwait was able to boost the value of these assets, given its ability to achieve significant financial surpluses in recent years, which confirms its ability to invest new assets in diversified investments around the world.
Even if the surpluses fall in the coming years due to an oil price drop, the government can maintain a good level of surplus due to the rationalization of current spending……………………………………….Full Article: Source

Afghanistan, Kazakhstan ready to join BTK project

Posted on 17 October 2014 by VRS  |  Email |Print

Afghanistan and Kazakhstan are interested in joining the Baku-Tbilisi-Kars (BTK) railway project, Azerbaijan’s Transport Minister Ziya Mammadov told reporters on Oct.16. He made the remarks on the sidelines of the “Baku-Tbilisi-Kars railway line - new opportunities in the development of the Silk Road” international conference in Baku.
The State Oil Fund of the Republic of Azerbaijan (SOFAZ) finances the project in accordance with the Azerbaijani president’s decree ‘On the implementation of the Baku-Tbilisi-Kars project activities’ dated February 21, 2007………………………………………..Full Article: Source

Future Fund ‘could review fossil fuels’

Posted on 16 October 2014 by VRS  |  Email |Print

The commonwealth Future Fund has indicated it could review its fossil fuel investments if demand for green energy increased. The comments come as Prime Minister Tony Abbott blasts the Australian National University’s “stupid decision” to offload its fossil fuels portfolio.
The university is selling holdings in Iluka Resources, Independence Group, Newcrest Mining, Sandfire Resources, Oil Search, Santos and Sirius Resources for ethical reasons. Meanwhile, Future Fund managing director David Neal said his sovereign wealth fund was closely monitoring new energy technology and changing demand for fossil fuels………………………………………..Full Article: Source

Future-proofing the Future Fund

Posted on 16 October 2014 by VRS  |  Email |Print

In delivering the Future Fund’s best two-year return since its inception seven years ago, managing director David Neal took great pains to point out that recent returns are not sustainable. The Future Fund, set up by then treasurer Peter Costello in 2006, generated a return of 14.3 per cent for the fiscal year to June, taking the total value of its assets to $104.5 billion and ensuring a comfortable retirement for the nation’s civil servants when the fund starts paying out from 2020.
Following on from a similarly strong 15.4 per cent return in the prior year, that means the Fund has well and truly beaten its targeted return of CPI plus 4.5 per cent over all investment periods, and indeed doubled its target in the latest year………………………………………..Full Article: Source

Kazakhstan’s Alliance Bank says near completion of debt restructuring, merger

Posted on 16 October 2014 by VRS  |  Email |Print

Kazakhstan’s Alliance Bank ALLBy.LU, majority owned by the country’s sovereign wealth fund, is close to completing a $1.2 billion debt restructuring and a merger with two other banks, its chief executive said on Wednesday.
Timur Issatayev, who has been meeting creditors in London and New York, told Reuters he was confident of getting the go-ahead at creditor and shareholder meetings due in coming weeks. The proposals, put forward in August, are seen halving the nominal value of existing bond holdings to $300 million………………………………………..Full Article: Source

Indian President Pranab in lobbyist role; Noway SWF

Posted on 15 October 2014 by VRS  |  Email |Print

President Pranab Mukherjee, blamed by some for driving away foreign investment as a UPA finance minister, is this week donning the mantle of chief lobbyist to re-ignite interest from Europe’s largest sovereign wealth fund — for Prime Minister Narendra Modi.
Norway holds Europe’s largest sovereign wealth fund — a state-owned investment fund used by nations to plough money usually into stocks, equities, markets or infrastructure projects that the country deems will earn it safe, high returns. Of its $890bn (Rs 54.3 lakh crore) sovereign fund, Norway has currently invested only about $4bn in Indian stock markets and specific infrastructure projects………………………………………..Full Article: Source

1MDB awarded 2,000MW power plant in Melaka-The Edge

Posted on 15 October 2014 by VRS  |  Email |Print

The government has confirmed the award of the 2,000MW combined cycle gas power plant in Melaka to 1Malaysia Development Bhd (1MDB), which is deemed crucial for the sovereign wealth fund to list its power assets on the local bourse by year-end or sometime early next year.
Opposition lawmaker Tony Pua lambasted the third successive award of the multi-billion ringgit power contract to 1MDB this year, conveniently ahead of its planned listing………………………………………..Full Article: Source

1MDB Awarded Contract Via Direct Negotiation

Posted on 15 October 2014 by VRS  |  Email |Print

The Government has awarded 1Malaysia Development Bhd (1MDB) a contract to build a 2,000-megawatt (MW) power plant in Malacca via direct negotiation. The Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili confirmed awarding the multi-billion contract to 1MBD via a written reply to DAP lawmaker Tony Pua last week.
Pua had earlier asked the ministry if the award for the plant that is only scheduled for commissioning in 2021 had already been awarded to 1MDB, and if the project is vital for 1MDB’s listing exercise………………………………………..Full Article: Source

Penang woos Singapore investors following Temasek deal

Posted on 15 October 2014 by VRS  |  Email |Print

Amid a spat with Putrajaya over federal assistance to draw investors to Penang, the state government will boost its efforts to draw more Singaporean investors following its recent partnership with the republic’s Temasek Holdings to develop a RM11.3 billion business and a technology hub.
Chief Minister Lim Guan Eng, who is leading a two-day investment mission to Singapore tomorrow, said Penang wanted to sell the message that the northern Malaysian state was an ideal location, especially in terms of human talent……………………………………….Full Article: Source

Italy and China sign business deals worth $10 billion

Posted on 15 October 2014 by VRS  |  Email |Print

Italy and China signed business deals worth about 8 billion euros (6.37 billion pounds) on Tuesday in sectors ranging from energy to engineering, deepening Beijing’s commercial ties with the euro zone’s No. 3 economy. China has already spent well over 5 billion euros buying stakes in some of Italy’s biggest companies this year.
In addition, Italian state investment fund FSI said it had signed a memorandum of understanding with China Investment Corp, a sovereign wealth fund responsible for managing part of China’s foreign exchange reserves, for joint investment projects in which each would provide up to 500 million euros………………………………………..Full Article: Source

Test launch of first cars on BTK railway scheduled for year-end

Posted on 14 October 2014 by VRS  |  Email |Print

The test launch of the first cars on the Baku-Tbilisi-Kars railway (BTK) is scheduled for the end of 2014. Financed by Azerbaijan’s state oil fund SOFAZ, the project was implemented after Azerbaijan’s President issued a decree on the ‘Implementation of measures within the Baku-Tbilisi-Kars project’, on February 21, 2007.
Being a regional rail link project that connects Azerbaijan, Georgia, and Turkey, the BTK railway is planned to be completed in late 2015………………………………………..Full Article: Source

Okonjo-Iweala woos investors to Nigeria

Posted on 13 October 2014 by VRS  |  Email |Print

Dr Ngozi Okonjo-Iweala, the Minister of Finance, has urged foreign investors to continue to invest in Nigeria through the Nigeria Sovereign Investment Authority (NSIA). Okonjo-Iweala made this known at a meeting with Business Council for International Understanding at the Annual Meetings of the World Bank and International Monetary Fund in Washington DC.
She said that Nigeria Sovereign Wealth Fund (NSWF) had been rated second most transparent in the world after that of Norway. “The NSWF has now been rated the second most transparent after Norway by the Sovereign Wealth Fund institute and that is saying a lot………………………………………..Full Article: Source

Singapore’s GIC eyes NZ retail assets

Posted on 13 October 2014 by VRS  |  Email |Print

The Government of Singapore Investment Corporation (GIC) has reportedly submitted a US$875 million-plus bid to acquire significant retail assets in New Zealand. According to Australia’s Business Spectator, the city-state’s sovereign wealth fund (SWF) is seeking to take possession of Scentre’s shopping malls in the country, as it continues its push into non-traditional assets classes such as real estate.
Scentre itself had taken control of the retail assets in Australia and New Zealand when they were spun-off from conglomerate Westfield earlier this year. Scentre was said to be mulling listing these assets on either the Australian or New Zealand bourse before the GIC offer came in. Scentre’s retail assets include large shopping malls in cities such as Auckland, Christchurch and Wellington………………………………………..Full Article: Source

Norway is right to reassess its sovereign wealth fund

Posted on 13 October 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is large (Ministry of Finance 2013). At $890 billion, it is the largest sovereign wealth fund in existence, holding over 1% of almost every listed stock in the world. However, as the fund approaches $180,000 for every man, woman, and child in Norway, there have been calls to reassess the way it is managed – from divesting oil and gas stocks to reducing the amount spent each year.
Recent research provides some support for these calls, by treating above- and below-ground wealth as two sides of the same coin for the first time (van den Bremer et al. 2014). At present, Norway has designed its fund according to the principles of modern portfolio theory. These principles would see Norway construct a highly diversified equity portfolio, choose the size of that portfolio based on its risk preferences, and consume a fixed proportion of the fund’s assets each year (Merton 1971)………………………………………..Full Article: Source

Fitch Affirms Kazakhstan’s Sovereign Wealth Fund Samruk-Kazyna at ‘BBB+’; Outlook Stable

Posted on 13 October 2014 by VRS  |  Email |Print

Fitch Ratings has affirmed Kazakhstan’s Joint Stock Company Sovereign Wealth Fund Samruk-Kazyna’s (SK) Long-term foreign currency Issuer Default Rating (IDR) at ‘BBB+’, Long-term local currency IDR at ‘A-’, National Long-term rating at ‘AAA(kaz)’ and Short-term foreign currency IDR at ‘F2′. The Outlooks on the Long-term ratings are Stable.
Fitch has also affirmed SK’s senior unsecured domestic bond issues at Long-term local currency ‘A-’ and a National Long-term ‘AAA(kaz)’. KEY RATING DRIVERS SK’s ratings are equalised with those of Kazakhstan (BBB+/A-/Stable) and reflect 100% state ownership and SK’s status as an extension of the government, in Fitch’s view. They also reflect the strategic importance of the assets under SK’s control and the sovereign wealth fund’s strong financial position………………………………………..Full Article: Source

Doing God’s Work With The Devil: Goldman Sachs’ Business With Gadhafi’s Sovereign Wealth Fund

Posted on 10 October 2014 by VRS  |  Email |Print

Minutes after the death of Colonel Muammar al-Gadhafi, Libya’s brutal dictator for more than four decades, images depicting his opulence surfaced on television stations across the world. A young rebel with a gold-plated pistol, reputedly Gadhafi’s, celebrated the death of the despot.
Along with tales of Gadhafi’s extravagant, bacchanal, and wasteful lifestyle, a darker, more complex tale emerged, of how Western financial institutions flocked to the beleaguered nation after the raising of sanctions, intensely courting the officials of the nascent sovereign wealth fund, equipped with at least $40 billion to invest across the globe as world financial markets crumbled around them………………………………………..Full Article: Source

GIC eyes Scentre’s $1bn NZ assets

Posted on 09 October 2014 by VRS  |  Email |Print

Singapore’s GIC is believed to have submitted an attractive proposal to acquire Scentre’s $1 billion-plus New Zealand portfolio, but it remains to be seen whether the company will take the offer or pursue a float of the ­assets.
Scentre, which owns the Australian and New Zealand shopping malls that were spun out of Westfield this year, is also widely believed to be contemplating spinning off the assets into a new vehicle that will be listed on either the NZ stock exchange or the Australian bourse. There is much speculation on the NZ portfolio with Scentre also tipped to have sounded out UBS and JPMorgan on a potential float………………………………………..Full Article: Source

Kazakh fund Samruk-Kazyna plans to reduce number of companies

Posted on 08 October 2014 by VRS  |  Email |Print

Kazakh Sovereign Wealth Fund Samruk-Kazyna joint-stock company plans to reduce the number of companies as part of the transformation program, chairman of board Umirzak Shukeyev said at the company’s transformation forum with participation of Kazakh President Nursultan Nazarbayev Oct. 6.
“In general, we plan to reduce the number of the fund’s companies twofold in the next three years from 600 to 300 and the number of management hierarchy levels from nine to four,” he said. “Previously, the fund realized a number of initiatives in the direction of transformations,” he said. “In particular, the operating costs reduced by 128 billion tenge by introducing a single treasury function, e-procurement, non-core assets and implementing a new policy - investment and dividend policy.”……………………………………….Full Article: Source

Dutch Failure to Copy Norway on EU265 Billion Gas Gains Queried

Posted on 08 October 2014 by VRS  |  Email |Print

The Netherlands got about 265 billion euros ($334 billion) in over half a century in proceeds from Slochteren and other gas fields, and has little to show for it. That’s the conclusion of the nation’s Court of Audit, which looked into what happened to the money raised from the sale of gas from the Slochteren field, discovered in 1959 in the biggest find on Continental Europe.
Had the Netherlands followed the Norwegian example of a sovereign wealth fund, about 350 billion euros would have been available as of January 2014, the court said. The Netherlands can still have 150 billion euros by 2035 if it starts putting money aside now and invests like the Norwegians, the Court said………………………………………..Full Article: Source

Malaysia’s 1MDB near new debt deal, seeks January listing

Posted on 08 October 2014 by VRS  |  Email |Print

Malaysian sovereign fund 1Malaysia Development Bhd (1MDB) is preparing to list its power assets in January, seeking to raise more than US$3 billion (S$3.8 billion), after finalising a second debt refinancing agreement this month, sources with direct knowledge of the matter said.
Plans for the IPO, which is aimed at helping 1MDB cut down a debt burden exceeding US$11 billion, had been delayed due to a longer-than-expected due diligence process and negotiations surrounding its first debt refinancing agreement. 1MDB, which owns 16 power and desalination plants in six countries, is aiming to file its listing application later this month, three people familiar with the matter told Reuters………………………………………..Full Article: Source

“Get Out Of My Country” Libyan Sovereign Wealth Fund “Screwed” By Goldman

Posted on 08 October 2014 by VRS  |  Email |Print

You can mess with Greece with only modest repercussions, but, as Bloomberg reports, mess with Libya and trouble comes fast. In a strangely familiar case of deja vu, Libya’s sovereign wealth fund (LIA) sued Goldman Sachs over money-losing investments made in 2008, saying the bank exploited the LIA’s inexperience to sell risky derivatives.
An LIA executive cursed at the Goldman bankers that they had “screwed” him and threatened “get out of my country,” according to witness statements, adding that “he would come after their families.”……………………………………….Full Article: Source

GIC acquires remaining 50% stake in RomaEst Shopping Centre

Posted on 07 October 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has acquired a 50 per cent interest in RomaEst Shopping Centre from a fund managed by CBRE Global Investors. GIC, which already owns 50 per cent of RomaEst through an affiliate, will be the sole owner of the Italian shopping centre. CBRE Global Investors will continue to be the asset manager for the centre.
GIC said in a news release on Monday (Oct 6) that the acquisition demonstrates its confidence in the long-term prospects for Italy and in the future demand for prime regional centres. In addition to RomaEst’s stable cash flows, GIC sees opportunities to add value to the centre through active asset management, including leasing and refurbishment strategies………………………………………..Full Article: Source

Indonesia’s Bumi slashes size of rights issue as creditors spurn shares

Posted on 07 October 2014 by VRS  |  Email |Print

Indonesia’s biggest coal miner Bumi Resources, which had planned to sell new shares to its creditors as a form of debt repayment, said it had slashed the size of the rights issue by about half due to tepid demand.
Of the issuance, Chinese sovereign wealth fund China Investment Corp has already subscribed to 6.9bn Bumi shares worth US$150m. In October last year, CIC agreed to convert part of Bumi’s debt into stakes in the miner and associated subsidiaries………………………………………..Full Article: Source

Goldman had ‘inappropriate’ relationship with Libyan fund

Posted on 07 October 2014 by VRS  |  Email |Print

A lawyer seconded to the Libyan Investment Authority, which is suing Goldman Sachs over $1 billion of trades that ended up worthless, was “shocked” by the bank’s “inappropriate” relationship with the fund, according to court filings.
In a suit filed at London’s High Court, the Libyan Investment Authority (LIA) claims the Wall Street investment bank exploited a position of trust by encouraging the sovereign wealth fund to invest more than $1 billion in a series of equity derivatives trades that expired as worthless in 2011………………………………………..Full Article: Source

Brazil official rules out fire sale of Banco do Brasil stock

Posted on 02 October 2014 by VRS  |  Email |Print

Brazil’s government has no plans to sell the shares of state-run Banco do Brasil SA owned by the nation’s sovereign wealth fund, to help close a shortfall in the federal budget, a top finance ministry official said on Wednesday.
The government has no intention of carrying out a fire-sale of the shares which would “unnecessarily slash” their value, said Paulo Rogêrio Caffarelli, the ministry’s No. 2 official, at an event in Rio de Janeiro………………………………………..Full Article: Source

Russia’s Sovereign Fund Invests Lobbying $$$ in Capitol Counsel

Posted on 02 October 2014 by VRS  |  Email |Print

The Russian Direct Investment Fund, which has more than $10B in assets, has invested $90K in a two-month effort by Capitol Counsel LLC to educate US Treasury staffers and policymakers about its operation. The Financial Times reported Sept. 21 that RDIV is battling to preserve its goals as relations between Moscow and West plummet.
Russia’s sovereign fund has avoided US economic sanctions, though its parent, state-owned VEB, and supervisory board member Sergei Ivanov, who was Vladimir Putin’s chief of staff, are on the list. Capitol Counsel, which is headed by Democratic lobbyist John Raffaelli, is to assist RDIF correct “significantly misstated” press reports, according to the representation agreement………………………………………..Full Article: Source

Africa’s Richest Man Aliko Dangote Explores New Opportunities With Dubai Sovereign Fund ICD

Posted on 02 October 2014 by VRS  |  Email |Print

The Investment Corporation of Dubai (ICD), the sovereign fund owned by the government of Dubai, United Arab Emirates, is exploring further investment opportunities in Africa in collaboration with Dangote Group, the Nigerian conglomerate owned by Africa’s richest man, Aliko Dangote.
According to a Reuters report, Mohammed al-Shaibani, ICD’s CEO, disclosed this on Wednesday, while speaking alongside Aliko Dangote during a session at the Africa Global Business Forum in Dubai. “We have been looking at Africa for a long time. We are looking to do more business with Mr. Dangote and we have some things that we are exploring at the moment together,” Mohammed al-Shaibani told the audience during the event at Atlantis, The Palm, in Dubai………………………………………..Full Article: Source

Dubai’s Sovereign Fund Keen On More Deals With Dangote

Posted on 02 October 2014 by VRS  |  Email |Print

Barely a month after it made its first investment in Africa’s largest economy following the purchase of a $300 million minority (1.4 percent) stake in Dangote Cement, Dubai’s sovereign wealth fund – Investment Corporation of Dubai (ICD) said it is planning to invest more in other sectors of Dangote Group.
Speaking at a conference in Dubai, CEO of the Emirate fund, Mohammed Al Shaibani said the company is diversifying its portfolio and looking forward to expanding its partnership with Dangote Group, especially in areas of agriculture and infrastructure………………………………………..Full Article: Source

Daimler : KIA looks to build on $18bn German spend

Posted on 02 October 2014 by VRS  |  Email |Print

The Kuwait Investment Authority (KIA), one of the world’s largest sovereign wealth funds and a long-term investor in German auto maker Daimler AG, wants to ramp up investments in Europe’s largest economy.
Finance minister and KIA board chairman Anas al Saleh said the authority would add to its investments in Germany, where Kuwait has invested almost $18 billion. KIA is the largest shareholder in Daimler, with a 6.8 per cent stake. The stake has grown in value to almost $6 billion………………………………………..Full Article: Source

Nigeria’s Opposition Wants to Scrap Sovereign, Oil Funds

Posted on 01 October 2014 by VRS  |  Email |Print

Nigeria’s main opposition party said it will scrap the country’s sovereign wealth fund and a separate excess crude account if it wins elections in February. “We’re going to put a stop to them,” Lai Mohammed, a spokesman for the All Progressives Congress, or APC, said in an interview in London yesterday. “The sovereign wealth fund and the excess crude account are illegal.”
The $1.5 billion sovereign wealth fund, called the Nigeria Sovereign Investment Authority, was started in 2011, with the ruling People’s Democratic Party saying the country needed to save money for future generations. The Excess Crude Account, which stands at $4.11 billion, is used by the government to cover shortfalls in its budget and give foreign investors comfort the state can guard against a fall in the value of the currency………………………………………..Full Article: Source

CIC selling part of Noble Group stake, fans fear of more sales

Posted on 01 October 2014 by VRS  |  Email |Print

China Investment Corp will sell part of its stake in Noble Group Ltd at a 5 percent discount, sending shares in the commodity trader tumbling and sparking fears that CIC would eventually move to offload most of its holding.
The Chinese sovereign wealth fund, Noble’s second biggest shareholder, is selling shares equivalent to 4.5 percent of the commodity trader, a term sheet showed………………………………………..Full Article: Source

RAC’s owners strike deal with Malaysian investment fund

Posted on 01 October 2014 by VRS  |  Email |Print

Global asset manager, The Carlyle Group, has announced it has entered into an agreement with GIC, Singapore’s sovereign wealth fund, to become a co-shareholder in RAC. Following the transaction, Carlyle and GIC will jointly own a majority stake in the business with RAC management holding the remaining shares.
The investment is expected to be completed by the end of the year and the transaction completes the strategic review undertaken by Carlyle and as a result, RAC will not be pursuing an IPO at this time. RAC is the second-largest roadside assistance provider in the UK and has approximately eight million roadside members………………………………………..Full Article: Source

Khazanah confirms listing of its theme park operator

Posted on 01 October 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd has confirmed its intention to list its entertainment park operator Themed Attractions and Resorts Sdn Bhd on the Main Market of Bursa Malaysia. Khazanah MD Tan Sri Azman Mokhtar however said the listing will not take place this year, as more works has to be carried out prior to the listing, thus the remaining three months in 2014 is insufficient.
“I can confirm that because its almost October now, it (the listing) is not this year. The company is doing well. We have no hurry to actually list it, but we are going to list it when the company is ready. “It does not involve Khazanah alone, as the 100% shareholder, but also the board of directors. Financially the company is doing well, thus we would like the company to be listed. By being in the stock exchange, it will help the company to be more transparent and accountable,” he said………………………………………..Full Article: Source

CIC to Cut Stake in Singapore Commodity Trader Noble Group

Posted on 30 September 2014 by VRS  |  Email |Print

Sovereign-wealth fund China Investment Corp. is seeking to raise up to 405 million Singapore dollars (US$318 million) by selling a portion of its stake in Singapore-listed commodity trader Noble Group, people with knowledge of the deal said Monday.
CIC, which currently owns close to a 15% stake in Noble Group, will see its holding fall to about 10% post sale, one of the people said. China’s sovereign-wealth fund had spent US$850 million in 2009 to buy a stake in the Hong Kong-based Noble Group, a diversified commodities company with assets ranging from Brazilian sugar mills to Australian iron ore to oilseed-processing facilities in China and India………………………………………..Full Article: Source

Khazanah will not list Themed Attractions this year

Posted on 30 September 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd will not be listing its wholly-owned subsidiary Themed Attractions and Resorts Sdn Bhd (TAR) this year but would like its leisure and tourism arm to be listed eventually, said Khazanah managing director Tan Sri Azman Mokhtar.
“I can confirm that it (listing) will not be this year. (TAR is) doing well and we’ve no hurry to list it. We’ll list it when it’s ready,” he said. He said the decision to list TAR will be made jointly between Khazanah, the board of TAR as well as TAR CEO………………………………………..Full Article: Source

Alberta Heritage Savings Trust Fund up for debate

Posted on 30 September 2014 by VRS  |  Email |Print

The endowment funds created by former premier Alison Redford will be up for debate next week when Albertans voice their opinion on the province’s savings. The Legislative Assembly of Alberta’s Standing Committee on the Alberta Heritage Savings Trust Fund will hold a public meeting to “discuss changes” to the $17.5 billion fund and it’s endowments on Oct. 9 at 4:30 p.m. inside the University of Alberta’s Lister Centre.
In March, Redford announced two new funds and two endowments springing from the Heritage Savings Trust Fund that were given a $1.1 billion allocation for the 2014-15 fiscal year. Prentice has already directed Don Scott, the new Minister of Innovation and Advanced Education, to “assess the proposed value” of the Social Innovation Endowment that saw an immediate capitalization of $500 million from the province’s savings in 2014………………………………………..Full Article: Source

Linklaters and Freshfields advise as GIC takes co-ownership of RAC with Carlyle

Posted on 29 September 2014 by VRS  |  Email |Print

Linklaters and Freshfields Bruckhaus Deringer have taken on key roles as Singapore’s sovereign wealth fund GIC prepares to become co-owner of RAC, the UK’s second largest roadside assistance provider.
Following the investment, which is due to be completed by the end of the year, GIC and private equity house The Carlyle Group will jointly own a majority stake in the business with RAC management holding the remaining shares. The deal was run as a dual-track offering, with the initial public offering (IPO) mooted earlier in the summer abandoned after GIC was identified as a buyer………………………………………..Full Article: Source

1MDB land issue in Penang: Guan Eng demands answers

Posted on 29 September 2014 by VRS  |  Email |Print

As more questions surface about the 1Malaysia Development Board (1MDB) and its lack of transparency, the Penang government is pushing for answers to the sovereign fund’s purchase of land in the state. With debts reportedly amounting to around RM38 billion after operating for five years, Chief Minister Lim Guan Eng said the people have the right to know how IMDB, which is the federal government investment arm, used its funds.
In Penang, he said the board purchased 234 acres of freehold land in Air Itam in two deals on April 29, 2013, just six days before the May 5, 2013 general election; and in a third and final deal on September 23, 2013………………………………………..Full Article: Source

Main work completes on Georgian section of Baku-Tbilisi-Kars railway

Posted on 29 September 2014 by VRS  |  Email |Print

A section between Marabda and Kartsakhi stations was constructed in Georgia as part of the Baku-Tbilisi-Kars (BTK) railway project, Azeryolservis JSC under the Azerbaijani Transport Ministry said. Its subdivision is the contractor of three of the four stages of the railway line construction on the territory of Georgia.
SOFAZ finances the project in accordance with the decree of the President of Azerbaijan ‘On the implementation of the activities of the Baku-Tbilisi-Kars project’ dated February 21, 2007………………………………………..Full Article: Source

Kazakh envoy meets with Director of Abu Dhabi Fund for Development

Posted on 26 September 2014 by VRS  |  Email |Print

On September 24, 2014 Ambassador of Kazakhstan to the UAE Kairat Lama Sharif met with Mr. Mohammed Saif Al Suwaidi, the Director General of the Abu Dhabi Fund for Development (ADFD. During the meeting Kairat Lama Sharif briefed on the process of reform of the “Samruk-Kazyna” Fund in several key areas, in accordance with the best international practices and advanced international experiences of sovereign wealth funds.
In addition, the Kazakh diplomat noted that currently transmission of the public assets and quasi-public sector’s assets to the competitive environment within the framework of second wave of privatization in Kazakhstan has begun. Mr. Mohammed Saif Al Suwaidi praised the efforts of Astana for sustainable economic growth of modern Kazakhstan………………………………………..Full Article: Source

Temasek arm signs 2nd LNG purchase contract

Posted on 25 September 2014 by VRS  |  Email |Print

Singapore state investor Temasek-owned Pavilion Energy has signed a second long-term contract to buy liquefied natural gas (LNG) for trading and supply to Asia, taking another step towards its goal of becoming a global company in the fuel.
Pavilion Energy said in a statement yesterday its wholly owned subsidiary Pavilion Gas Pte has struck a deal with BP under which the UK company will supply it with 0.4mn tonnes per year of LNG for 20 years from 2019. It did not say how much Pavilion would pay for the LNG………………………………………..Full Article: Source

Biggest Wealth Fund CEO Sticks to Norway in Own Investments

Posted on 25 September 2014 by VRS  |  Email |Print

As head of the world’s biggest sovereign wealth fund Yngve Slyngstad has invested in more than 80 countries. Yet when placing his own money, he sticks to his home country Norway.
The chief executive officer of Norges Bank Investment Management, the unit inside Norway’s central bank that manages the $870 billion fund, owns shares in 14 companies including Statoil ASA (STL) and Telenor ASA (TEL), according to information released by NBIM. Since heading the fund in 2008, Slyngstad has bought stock for 1.6 million kroner ($252,000) and sold shares for about 100,000 kroner………………………………………..Full Article: Source

Singaporean Fund Revs Up GBP2bln RAC Takeover

Posted on 24 September 2014 by VRS  |  Email |Print

A Singaporean state fund is in secret talks to lead a £2bn-plus takeover of the RAC, a move that would end the prospect of a stock market listing of the famous roadside recovery business. Sky News can reveal that the Government Investment Corporation of Singapore (GIC) is discussing with Carlyle, the RAC’s existing owner, a deal that could be struck within days.
GIC is understood to have been interested in participating in a takeover of the RAC, which has 8.2 million members, for some time, having been enticed by the company’s stable cashflows and growth prospects, according to a person close to the situation………………………………………..Full Article: Source

1MDB’s offering to push sukuk sales in Malaysia above RM50b

Posted on 24 September 2014 by VRS  |  Email |Print

The world’s biggest Islamic debt offering this year from Malaysia’s sovereign wealth fund will push the nation’s sukuk sales beyond RM50 billion for only the second time in 16 years. 1Malaysia Development Bhd (1MDB) plans to sell as much as RM8.4 billion of the notes, adding to the RM46.9 billion sold so far that’s almost double the amount a year earlier.
After 2012’s record issuance of RM95.8 billion, CIMB Group Holdings Bhd and Asian Finance Bank Bhd see RM100 billion as being achievable in the next few years………………………………………..Full Article: Source

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