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Samruk-Kazyna Group of Companies under the Privatization Plan for 2016-2020 to Auction 10 Companies until the End of July

Posted on 30 May 2016 by VRS  |  Email |Print

Samruk-Kazyna Group of Companies will place various ownership interests in 10 companies to the electronic auction by the end of July. The share sale is planned in the framework of implementation of the Comprehensive Privatization Plan for 2016-2020 approved by the Government of the Republic of Kazakhstan.
“The State Commission for Economic Modernization under the Government of the Republic of Kazakhstan approved the sale of different shares in 10 Samruk-Kazyna companies”. Auctions of 5 assets of JSC NC Kazakhstan Engineering, 3 assets of JSC NAC Kazatomprom, 2 assets of Samruk-Energy JSC are scheduled until the end of July, - said the Managing Director for Asset Optimization - Member of the Management Board of Samruk-Kazyna JSC Berik Beisengaliyev……………………………………….Full Article: Source

Kazakh sovereign fund seeks over $6b from privatisations

Posted on 30 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk-Kazyna plans to raise more than $6 billion from privatisations over the next five years, using the proceeds to help its companies repay debt, the fund’s managing director told Reuters on Thursday.
The sale will start with small companies. Public offerings of stakes in the fund’s crown jewels, such as national oil company KazMunayGaz, will be the last deals to happen and will take place after 2018, Berik Beisengaliyev said in an interview. “The balance sheet value of those assets (earmarked for privatisation) is between $6.0-7.3 billion at the current exchange rate,” Beisengaliyev said………………………………………..Full Article: Source

Kazakh sovereign fund seeks over $6 billion from privatisations

Posted on 27 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk-Kazyna plans to raise more than $6 billion (4 billion pounds) from privatisations over the next five years, using the proceeds to help its companies repay debt, the fund’s managing director told Reuters on Thursday.
The sale will start with small companies. Public offerings of stakes in the fund’s crown jewels, such as national oil company KazMunayGaz, will be the last deals to happen and will take place after 2018, Berik Beisengaliyev said in an interview. “The balance sheet value of those assets (earmarked for privatisation) is between $6.0-7.3 billion at the current exchange rate,” Beisengaliyev said………………………………………..Full Article: Source

State Oil Fund sells $50M to Azerbaijani banks

Posted on 27 May 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $20 million to 11 banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said May 26. Meanwhile, CBA itself acquired $30 million at the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

FINMA links BSI Singapore, BSI Swiss to 1MDB

Posted on 27 May 2016 by VRS  |  Email |Print

In a massive revelation, the Swiss financial market supervisory authority FINMA has conclusively linked troubled bank BSI AG and its Singapore branch, to the global scandal surrounding Malaysian sovereign wealth fund 1MDB. FINMA said through business relationships and transactions linked to the corruption scandals surrounding 1MDB, BSI AG committed serious breaches of money laundering regulations.
It said in the case of 1MDB, there were deliberate management decisions made by the bank that led FINMA to reach its conclusions of corruption and money laundering accusations. Transactions involving 1MDB were executed within the client group and with THIRD PARTIES without the bank adequately clarifying their commercial justification………………………………………..Full Article: Source

Norway to regulate $850 billion fund’s tax haven exposure-lawmakers

Posted on 27 May 2016 by VRS  |  Email |Print

Norway will take a first step this week towards using its $850 billion sovereign wealth fund, the world’s biggest, as a tool to combat the use of tax havens, two key members of parliament’s finance committee told Reuters on Wednesday.
The country’s right-wing minority government will be asked to take a two-pronged approach to regulation, examining both the fund’s own use of ownership structures designed to cut its liability for tax on its foreign investments as well as that of companies it invests in, the politicians said. The move follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash against tax havens………………………………………..Full Article: Source

Alaska Permanent plans up to $3 billion for private investments next fiscal year

Posted on 27 May 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, approved a private markets pacing plan for fiscal year 2017 starting July 1, said a news release from the $52.7 billion sovereign wealth fund. Under the pacing plan approved at this week’s board meeting, $900 million total would be committed to traditional private equity funds and co-investments in fiscal year 2017, with co-investments limited to $225 million.
This allocation could increase by $200 million based on market opportunities. Additionally, the pacing plan calls for up to $350 million total for structured private equity, which could increase by $200 million based on market opportunities………………………………………..Full Article: Source

Permanent Fund narrows losses in 3Q

Posted on 27 May 2016 by VRS  |  Email |Print

The Alaska Permanent Fund’s investment returns rose in the third quarter of fiscal year 2016 ended March 31, though performance is still down year-to-date. Due in part to the U.S. dollar’s strength impacting international investments, the Alaska Permanent Fund came in relatively flat in the third quarter of fiscal year 2016 at 1.2 percent compared to the performance benchmark of 2.3 percent.
Year-to-date, the Permanent Fund was down 0.9 percent as of March 31 at a total value of $52.5 billion, about $331 million less than the end of the 2015 fiscal year last June 30………………………………………..Full Article: Source

Norway to regulate $850 billion fund’s tax haven exposure-lawmakers

Posted on 26 May 2016 by VRS  |  Email |Print

Norway will take a first step this week towards using its $850 billion sovereign wealth fund, the world’s biggest, as a tool to combat the use of tax havens, two key members of parliament’s finance committee told Reuters on Wednesday.
The country’s right-wing minority government will be asked to take a two-pronged approach to regulation, examining both the fund’s own use of ownership structures designed to cutits liability for tax on its foreign investments as well as that of companies it invests in, the politicians said. The move follows the Panama Papers leaks in April, which revealed details of corporate and individual tax evasion and triggered a global backlash against tax havens………………………………………..Full Article: Source

Norway’s sovereign wealth fund says backed Shell CEO’s pay

Posted on 26 May 2016 by VRS  |  Email |Print

Norway’s $850 billion (578.79 billion pounds) sovereign wealth fund, the world’s biggest, voted in favour of the 2015 remuneration package of Royal Dutch Shell Chief Executive Ben van Beurden at Tuesday’s annual meeting of shareholders, the fund said on its web site on Wednesday.
About 86 percent of the owners backed the 5.14 million euro ($5.73 million) pay package at the meeting. Two investor advisory firms had recommended that Shell’s owners should oppose it………………………………………..Full Article: Source

SOFAZ revenues amount to $126 billion

Posted on 26 May 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) amounted to $126.2 billion during the entire period of its activity. The remark was made by Ziya Kangarli, chief investment advisor at SOFAZ during the Forum on “Decrease in oil prices and economic reforms: Challenges and Opportunities” which was held at Khazar University on May 24.
Kangarli noted that revenues of the SOFAZ are generated by two sources: directly by the revenues from sale of oil and by asset management. The spending totaled about $92 billion during the lifetime of the fund, said Kangarli, adding that it covers operating costs, which share is minimal, project financing and transfers to the state budget………………………………………..Full Article: Source

1MDB assets transfer to be completed by mid-June

Posted on 26 May 2016 by VRS  |  Email |Print

Malaysia Development Bhd’s (1MDB) assets transfer to Ministry of Finance Incorporated (MoF Inc) will likely be completed by mid-June, says Deputy Finance Minister Datuk Johari Abdul Ghani. The company, he said will then become a shell company to manage liabilities and bonds it has used.
“The ministry has also decided that 1MDB is no longer allowed to make borrowings from any institutions and has to serve its liabilities and manage bonds through whatever means. “The business model is no longer sustainable. You cannot continue to do business using this model anymore and that is the reason why they cannot borrow anymore………………………………………..Full Article: Source

No more bailouts for 1MDB

Posted on 26 May 2016 by VRS  |  Email |Print

All parties must ensure that 1Malay­­­sia Development Berhad (1MDB) does not borrow from public funds to “rescue” the national investment body. “There is nothing to hide. On questions on using funds from (Govern­ment) institutions to save 1MDB, I think we are all responsible to ensure that 1MDB will no longer borrow from them,” said Deputy Fi­­nance Minister Datuk Johari Abdul Ghani in response to a supplementary question by Datuk Mansor Othman (PKR-Nibong Tebal).
Mansor had asked how 1MDB’s debt rationalisation plan could be carried out without using public funds such as from Tabung Haji and the Armed Forces Fund Board………………………………………..Full Article: Source

Najib: No misappropriation in 1MDB’s accounts

Posted on 26 May 2016 by VRS  |  Email |Print

There was no misappropriation in 1MDB’s accounts and administration, only weaknesses in the administration of the company, the Dewan Rakyat was told today. Prime Minister Najib Razak said this in a written reply to Mahfuz Omar (PAS-Pokok Sena) who had asked the finance minister to specify the course of action taken against the 1MDB management after the Public Accounts Committee’s (PAC) report.
In his reply, Najib, who is also the Finance Minister, cited the PAC report, which he said had stated there was no misappropriation in the embattled state investment fund’s accounts administration. “There were only weaknesses in the administration of the company………………………………………..Full Article: Source

Kazakh sovereign wealth fund expects stabilization of tenge rate

Posted on 25 May 2016 by VRS  |  Email |Print

The Department of Research and Knowledge Management of Samruk-Kazyna Sovereign Wealth Fund of Kazakhstan forecasted stabilization of the national currency of the country in 2016, according to the department’s report May 24.
“The average exchange rate of the USD-KZT is projected in the range of 355 for 2016″, said the analytical report of the department. Based on the current momentum observed on the USD-KZT, the tenge is expected to strengthen gradually moving forward, underpinned by several factors………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $50 million through auction

Posted on 25 May 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today at the foreign exchange auction of the Central Bank as a seller. SOFAZ reports that today it set for sale an offer for $50 million and sold them.
“Among the buyers were 14 banks,” SOFAZsaid. At the previous auction the Fund sold $48.4 million to eight banks, including the CBA. The Fund promises to continue selling currency through auctions of the CBA………………………………………..Full Article: Source

Swiss Bank Is Charged Over 1MDB Dealings

Posted on 25 May 2016 by VRS  |  Email |Print

Authorities in Switzerland and Singapore took action against Swiss private bank BSI SA for allegedly failing to prevent suspected money laundering and bribery related to its dealings with a Malaysian development fund.
Switzerland’s Office of the Attorney General opened criminal proceedings against the bank, and the country’s Financial Market Supervisory Authority ordered BSI to pay back 95 million Swiss francs ($96 million) in profit and began enforcement proceedings against two unidentified former managers………………………………………..Full Article: Source

Confidence wanes in Malaysia govt-backed 1MDB bonds

Posted on 25 May 2016 by VRS  |  Email |Print

The fortunes of bonds in Malaysia’s troubled investment fund 1MDB are diverging this month: Those guaranteed by Abu Dhabi’s sovereign wealth fund have rallied, while notes with support from Malaysia’s own government have dropped.
Its 4.4 per cent 2023 notes, backed by a letter of support from Malaysia’s government, slumped 6.4 per cent in May, set for the worst slide in 16 months. The fund’s 5.99 per cent 2022 bonds, on which Abu Dhabi’s International Petroleum Investment Co (IPIC) paid interest earlier this month in its role as guarantor, gained 1.9 per cent, the most since at least September 2014………………………………………..Full Article: Source

Najib says he didn’t sign transfer of US$3.5b to Aabar BVI

Posted on 25 May 2016 by VRS  |  Email |Print

Prime Minister Najib Abdul Razak has implied that he was not involved in the transfer of US$3.5 billion from 1MDB to a British Virgin Island entity it believed was a subsidiary of International Petroleum Investment Company (IPIC).
This is because, Najib said, his signature as prime minister under Article 117 of 1MDB’s memorandum and article of association (M&A) was not needed in the transaction. “For your information, 1MDB has made a number of payments amounting to US$3.51 billion to Aabar Investments PJS Limited. “All the payments made were based on the agreement inked and all the management action in such context was done according to the instruction and approval of the board of directors…,” he said………………………………………..Full Article: Source

Goldman Sachs sees Malaysian deals evaporate amid 1MDB concerns

Posted on 25 May 2016 by VRS  |  Email |Print

When Malaysia’s largest sovereign wealth fund asked bankers to pitch for work arranging a US$750 million bond sale in December, one big name was conspicuous by its absence: Goldman Sachs.
Khazanah Nasional Bhd omitted the Wall Street firm from the list of banks invited to bid on that and other bond transactions in the past three years, according to a person familiar with the matter. During that time, Goldman slid down the Malaysian deal league tables, cold-shouldered by potential clients concerned about negative publicity from its dealings with 1Malaysia Development Bank Bhd (1MDB), another government entity………………………………………..Full Article: Source

Malaysia’s 1MDB Tells Creditors No Plans to Wind Down

Posted on 25 May 2016 by VRS  |  Email |Print

Malaysian state investment fund 1Malaysia Development Bhd. said on a call with creditors Monday that there are no plans to wind the troubled fund down.
1MDB, which is controlled by Malaysia’s Ministry of Finance, said it would remain a nonoperational entity to service debt through the sale of assets, according to a person who was on the call, which was open to holders of some of the fund’s bonds. 1MDB also said it expects to publish long-delayed audited financial statements by Sep. 30, the person said………………………………………..Full Article: Source

Bahrain’s Mumtalakat records $487m gross profit

Posted on 24 May 2016 by VRS  |  Email |Print

Mumtalakat, the investment arm of Bahrain, announced a gross profit of $487.2m (BHD183.2) for the year ending 31 December, 2015. The figure is 1.1% higher than 2014 profits of $481.6m (BHD181.m).
However, the company’s net profit reduced by 68.7% to $76.3m (BHD28.7m) in 2015, against 2014’s $243.6m (BHD91.6m). Mumtalakat said the reduction in net profit was due to “impairment losses recognised on goodwill”, but did not elaborate on this. The holding company’s operating income increased to $330.9m (BHD14.4m) on the back of an improved performance by national carrier, Gulf Air. Consolidated revenues for 2015 were $3.1bn (BHD1.2bn)………………………………………..Full Article: Source

Oil Fund wielded its clout over bank executives’ pay

Posted on 24 May 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund known as the Oil Fund has followed through on its decision to start using its clout, as a shareholder in major companies around the world, to oppose huge executive pay packages. Newspaper Dagens Næringsliv (DN) reported that it was part of voting down bonus packages last week, for example, for the bosses of Deutsche Bank in Germany.
Oil Fund boss Yngve Slyngstad has warned that he intends to boost the campaign against excessive executive pay. That’s what happened on Thursday, when the board of Deutsche Bank had proposed pay packages with large bonus prospects for top management………………………………………..Full Article: Source

Bahrain sovereign fund Mumtalakat 2015 net profit drops 68.7 pct

Posted on 23 May 2016 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat posted a 68.7 percent drop in 2015 net profit on Sunday, as the state-owned investor cited impairment losses for the decline. Net profit in 2015 was $76.3 million against $243.6 million in the previous year, Mumtalakat said in a statement.
Mumtalakat said the reduction in net profit was due to “impairment losses recognised on goodwill” without elaborating. It noted though that the impact was partially offset by a higher contribution from its share of profit from associates and improved operational performance at Gulf Air………………………………………..Full Article: Source

Gov’t not bound to undertake missing US$3.5b 1MDB bond, says Najib

Posted on 23 May 2016 by VRS  |  Email |Print

Prime Minister Najib Abdul Razak claims the government is not legally bound to take over US$3.5 billion in 1MDB bonds. “(This is because) the bonds were not guaranteed by the government nor a support letter (issued by government) on the bond,” he said in his capacity as finance minister.
He was responding Wong Chen (PKR-Kelana Jaya), who asked if the government is legally obligated to take over the bond since International Petroleum Investment Corp (IPIC) has refused to honour the binding term sheet dated May 26, 2015………………………………………..Full Article: Source

SOFAZ’s 2015 budget Approved

Posted on 20 May 2016 by VRS  |  Email |Print

Azerbaijan’s President Ilham Aliyev signed a decree May 18 on execution of the 2015 budget of the country’s State Oil Fund (SOFAZ). SOFAZ’s revenues and expenditures were 7,721,084,900 manats and 9,187,826,900 manats, respectively, in 2015, according to the decree.
The budget revenues and expenditures were executed by 75.4 percent and 77.8 percent, respectively. The revenues from the sale of profitable oil and gas stood at 7,369,582,100 manats, while the revenues from the oil and gas transit through Azerbaijan’s territory amounted to 11,594,900 manats…………………………………….Full Article: Source

Sovereign Wealth Fund hits N358b

Posted on 19 May 2016 by VRS  |  Email |Print

The Nigerian Sovereign Investment Authority (NSIA), which manages Nigeria’s sovereign wealth fund, has a total assets of about $1.8 billion (about N358 billion at current official exchange rate) under its management. Its Managing Director, Mr. Uche Orji, during a visit to the Nigerian Stock Exchange (NSE) yesterday in Lagos, gave the breakdown of the assets to include seed capital of $1.25 billion and third party funds of about $550 million.
Orji said the NSIA is shifting its focus from foreign investments to domestic investments, noting that the company led other investors in recent investments in a dairy farm and tomato paste firm in the Northern part of the country………………………………………..Full Article: Source

Azerbaijani president approves execution of SOFAZ’s 2015 budget

Posted on 19 May 2016 by VRS  |  Email |Print

Azerbaijan’s President Ilham Aliyev signed a decree May 18 on execution of the 2015 budget of the country’s State Oil Fund (SOFAZ). SOFAZ’s revenues and expenditures were 7,721,084,900 manats and 9,187,826,900 manats, respectively, in 2015, according to the decree.
The budget revenues and expenditures were executed by 75.4 percent and 77.8 percent, respectively. The revenues from the sale of profitable oil and gas stood at 7,369,582,100 manats, while the revenues from the oil and gas transit through Azerbaijan’s territory amounted to 11,594,900 manats………………………………………..Full Article: Source

Alaska Permanent Fund gains 1.2% in quarter, but lags benchmark

Posted on 18 May 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned 1.2% in the quarter ended March 31, trailing its performance benchmark return of 2.3%, said a spokeswoman for the $52.5 billion sovereign wealth fund in an e-mail.
Top-performing asset classes for the quarter included non-domestic fixed income, which returned 5.2%; private equity, 4.2%; domestic fixed income, 3.2%; and real estate, 2.1%………………………………………..Full Article: Source

Domestic focus may limit clout of $2 trillion Saudi fund

Posted on 17 May 2016 by VRS  |  Email |Print

Saudi Arabia aims to create the world’s biggest sovereign wealth fund, a $2 trillion behemoth that can throw its weight around global markets, but the fund’s growth abroad is likely to be slowed by its responsibility for aiding the economy at home.
Building the Public Investment Fund (PIF) into “the largest fund in the world by far” is a cornerstone of radical economic reforms announced by Deputy Crown Prince Mohammed bin Salman last month to cut the kingdom’s reliance on oil………………………………………..Full Article: Source

UAE sovereign wealth funds hiring in-house to cut costs

Posted on 17 May 2016 by VRS  |  Email |Print

Measures are seen as a means of reducing the “huge fees” some funds pay to external managers. Sovereign wealth funds in the UAE are increasing in-house recruitment and consolidating their holdings under larger private equity players to cut costs, according to law firm Baker Baker & McKenzie.
Speaking to reporters in Dubai earlier Monday, Baker & McKenzie head of UAE corporate practice Borys Dackiw said some sovereign funds were still engaging in “very active buying” despite expectations that low oil prices would force them to cut back………………………………………..Full Article: Source

Abu Dhabi to ease budget spending cuts, says ratings agency Moody’s

Posted on 17 May 2016 by VRS  |  Email |Print

Fitch estimates that the Abu Dhabi government sold about $27 billion of sovereign wealth fund assets to help it finance its deficit in 2015. It can finance its deficit by drawing down on the assets of the Abu Dhabi Investment Authority, the sovereign wealth fund that manages between $475bn and $773bn in assets, according to different estimates.
“Abu Dhabi is probably one of the best placed economies in the Gulf to cope with low oil prices,” said Jason Tuvey, an emerging markets economist at Capital Economics. “They’ve got enormous savings in their sovereign wealth funds and debt levels are low, so they can afford to prolong the adjustment for an extended period of time.” Abu Dhabi sovereign wealth funds hold assets under management equivalent to between three and four times the annual economic output of the emirate………………………………………..Full Article: Source

1MDB Default Shows Malaysia SOE Debt, Governance Risks

Posted on 16 May 2016 by VRS  |  Email |Print

1Malaysia Development Berhad’s (1MDB) missed bond coupon payment in April highlights ongoing uncertainty around the finances and governance of the state-owned fund. The situation is unlikely to lead to an immediate crystallization of the existing guarantee obligations of the Malaysian sovereign for 1MDB securities affected by cross-defaults, Fitch Ratings says.
The risk to the sovereign credit profile lies more in the potential for the affair to weaken policy focus or contribute to political instability. However, there is little sign of these risks materializing as yet………………………………………..Full Article: Source

Malaysia Q1 GDP beats expectations

Posted on 16 May 2016 by VRS  |  Email |Print

Malaysia’s economy grew faster than expected in the first quarter of 2016 even as tensions over its sovereign wealth fund and the prime minister’s role in alleged misappropriation of state spending escalated.Global attention has been keenly focused of late on the finances of Malaysia’s state investment fund, 1MDB, which is now the target of several international probes into allegations of the misappropriation of billions of dollars.
In early April the entire board of 1MDB offered to resign following a report. Later that month the fund announced it had failed to make an interest payment of $50m on 5.75 per cent bonds on a $1.75bn bond, which triggered cross defaults on two other notes totalling $1.9bn………………………………………..Full Article: Source

The Scourge of Negative Rates and Norway’s Shrinking Wealth Fund

Posted on 13 May 2016 by VRS  |  Email |Print

Norway’s massive wealth fund is projected to get smaller this year for the first time since early last decade. Budget documents on Wednesday showed the government expects the fund to shrink about 4 percent to 7.15 trillion kroner ($881 billion) at the end of 2016 after ending last year at 7.46 trillion kroner.
This historic projection comes as the fund is being bludgeoned on nearly all sides. Most pressing is probably that its returns from the 35 percent it must hold in bonds has all but evaporated amid negative yields across Europe………………………………………..Full Article: Source

Khazanah to raise US$900 million from share disposals

Posted on 12 May 2016 by VRS  |  Email |Print

Malaysia’s sovereign wealth fund Khazanah Nasional Berhad (Khazanah) made headlines recently on reports that it is offloading some 3.6 billion ringgit (US$890.51 million) worth of equity shares it currently holds in three major listed companies on the local bourse, Bursa Malaysia.
Citing undisclosed sources, Bloomberg reported that the state-owned investor had purportedly asked banks to pitch for a role in arranging the sale of about 2% of its shares in Tenaga Nasional Berhad (TNB), IHH Healthcare Berhad (IHH) and Axiata Group Berhad (Axiata) respectively, paring its stakes in each of the companies, of which Khazanah is the biggest shareholder………………………………………..Full Article: Source

1MDB bonds decline as deadline for another coupon payment looms

Posted on 12 May 2016 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) bonds dropped to the lowest in more than two weeks as the Malaysian state investment company faces another interest payment after defaulting on notes last month.
1MDB must repay US$52.4 million (S$71.7 million) of interest Wednesday on US$1.75 billion of 5.99 per cent bonds maturing in 2022. It failed to make a US$50 million coupon payment last month on separate privately-placed notes amid a dispute with Abu Dhabi’s sovereign wealth fund International Petroleum Investment Co, which co-guaranteed the securities………………………………………..Full Article: Source

Malaysia’s 1MDB Bonds Rise After Abu Dhabi Fund Pays Interest

Posted on 12 May 2016 by VRS  |  Email |Print

1Malaysia Development Bhd. bonds rose after Abu Dhabi’s sovereign wealth fund, which guarantees some of the Malaysian fund’s notes, paid interest due Wednesday on 1MDB securities. 1MDB’s 5.99 percent dollar notes due 2022 jumped 3 cents on the dollar, set for the biggest daily move in at least three weeks, to 103.8 cents, according to prices compiled by Bloomberg.
The jump came after Abu Dhabi’s International Petroleum Investment Co., which guaranteed the $1.75 billion dollar-denominated bond in 2012, made a $52.4 million payment on the securities, according to a stock exchange filing in London. The notes had dropped to a two-week low of 100.8 cents on Tuesday………………………………………..Full Article: Source

1MDB default highlights uncertainty surrounding fund: Fitch

Posted on 12 May 2016 by VRS  |  Email |Print

1Malaysia Development Bhd’s (1MDB) missed bond coupon payment in April highlights ongoing uncertainty surrounding the finances and governance of the state-owned fund, said Fitch Ratings. The rating agency said the situation is unlikely to lead to an immediate crystallisation of existing guarantee obligations of the Malaysian sovereign for 1MDB securities affected by cross-defaults.
“The risk to the sovereign credit profile lies more in the potential for the affair to weaken policy focus or contribute to political instability. However, there is little sign of these risks materialising as yet,” it said………………………………………..Full Article: Source

Najib, even an IPO can’t save doomed 1MDB

Posted on 12 May 2016 by VRS  |  Email |Print

As usual, PM Najib Razak is trying to blame others for 1MDB’s failures, except himself. With cheap land at its disposals and billions of government-guaranteed loans, there was sufficient cash to run the business. To blame others for subverting its issues of IPO (initial public offering) is an excuse.
If indeed 1MDB is a viable and profitable company like, let’s say Nestle, no amount of adverse comments will prevent others from subscribing to its IPO. Unfortunately, 1MDB is far from it. Therefore, with or without adverse comments, its IPO is bound for failure………………………………………..Full Article: Source

Khazanah’s Selling, Take Note

Posted on 11 May 2016 by VRS  |  Email |Print

When a company’s biggest shareholder starts cashing in, savvy investors often take it as a sign to also bail. News Tuesday then that Malaysian sovereign fund Khazanah Nasional is considering paring its stakes in three companies should have hedge funds on high alert.
The state-owned investor has asked banks to pitch for a role arranging the sale of about 2 percent each in Tenaga Nasional, IHH Healthcare and Axiata Group, in transactions that could raise almost $900 million, people familiar said. Malaysia’s government does want to boost liquidity in local markets, but even so, a deal would seem well timed………………………………………..Full Article: Source

Khazanah said to mull selling RM3.6bil of listed stocks

Posted on 11 May 2016 by VRS  |  Email |Print

Sovereign fund Khazanah Nasional Bhd is considering paring its stakes in three listed companies, in deals that could raise as much as RM3.6bil, according to people familiar with the matter.
The state-owned investor asked banks to pitch for a role arranging the sale of about 2% each in Tenaga Nasional Bhd (TNB), IHH Healthcare Bhd and Axiata Group Bhd, according to the people, who asked not to be identified as the information is private. Khazanah, which is the largest shareholder in the three Malaysian companies, might decide to sell stock in one or all of the firms, one of the people said………………………………………..Full Article: Source

Little risks now to Malaysia’s sovereign credit profile from 1MDB’s bond default payment : Fitch

Posted on 11 May 2016 by VRS  |  Email |Print

State investment fund 1Malaysia Development Bhd’s bond default payment last month is not likely to lead to a crystallisation of the existing guarantee obligations of the Malaysian sovereign for 1MDB securities affected by cross-defaults, says Fitch Ratings. There is little risk to the sovereign credit profile as yet, said its analysts, adding that the risk lies more in the potential for the affair to weaken policy focus or contribute to political instability.
1MDB missed a US$50 million coupon payment on a 5.75 per cent bond due in 2022 but International Petroleum Investment Corp (IPIC), Abu Dhabi’s sovereign wealth fund which had guaranteed the bonds under a debt-for-asset swap agreement, subsequently made the payment………………………………………..Full Article: Source

Snapdeal may SWFs to raise money for FreeCharge

Posted on 11 May 2016 by VRS  |  Email |Print

Online marketplace Snapdeal is in talks with multiple investors including Chinese firms and sovereign funds to raise money for FreeCharge, seeking to bulk up its digital payments platform before pitting it against market leader Paytm.
Jasper Infotech, which operates Snapdeal, is positioning FreeCharge as a cornerstone of its business as it builds a comprehensive online ecosystem of goods and services similar to that created by Chinese ecommerce giant Alibaba Group. The strategy, it expects, will make the electronic marketplace stand out from its closest rivals Flipkart and Amazon………………………………………..Full Article: Source

Norway’s Wealth Fund Faces Bill as Budget to Reveal Withdrawals

Posted on 10 May 2016 by VRS  |  Email |Print

Norway’s wealth fund, the world’s biggest, is about to find out just how much the government aims to withdraw this year. On Wednesday, the government will unveil a revised budget with new estimates on how much of the country’s $854 billion piggy bank will be used up during the course of 2016.
The government is spending a record amount of its oil wealth to protect against a recession and pay for a wave of immigrants. Established in the 1990s to safeguard the financial security of future generations, Norway’s wealth fund had been left untapped until October, when the government first announced it would have to use some of its abundant oil revenue………………………………………..Full Article: Source

SOFAZ reveals revenues from largest oil project

Posted on 10 May 2016 by VRS  |  Email |Print

Revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the development project of Azeri-Chirag-Guneshli (ACG) block of oil and gas fields totaled $118.502 billion from early 2001 to May 1, 2016, SOFAZ told Trend May 4.
“The Fund’s revenues from the project totaled $1.493 billion in January-April 2016, some $356 million of which accounted for April,” said SOFAZ. A contract for development of ACG block of fields was signed in 1994. The proven oil reserve of the block nears one billion tons………………………………………..Full Article: Source

Dubai Seen Weathering Mideast Slump as IMF Predicts Rapid Growth

Posted on 10 May 2016 by VRS  |  Email |Print

Dubai, the emirate that teetered on the brink of default during the global recession, is weathering the economic slowdown afflicting its oil-rich Gulf neighbors, according to the International Monetary Fund.
The IMF expects the U.A.E.’s economy to expand 2.3 percent this year. The subdued pace is largely due to the projected slowdown in the capital Abu Dhabi, home to 6 percent of global oil reserves and the world’s second-largest sovereign wealth fund………………………………………..Full Article: Source

1MDB scandal: Malaysia weighs cost of bailing out fund

Posted on 10 May 2016 by VRS  |  Email |Print

As investors brace for another ­potential default on debt issued by a troubled Malaysian government investment fund, attention is turning to the possible cost to the ­Malaysian government if it has to bail the fund out.
The fund, 1Malaysia Development Berhad, late last month defaulted on a $US1.75 billion ($2.4bn) bond — triggering a ­series of other defaults on 1MDB debt — following a dispute with Abu Dhabi sovereign wealth fund International Petroleum Investment Company over who should be making the interest payments. Those events look set to repeat when payment on a second $US1.75bn 1MDB bond comes due May 11………………………………………..Full Article: Source

Market braces for second 1MDB bond payment

Posted on 10 May 2016 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB), which defaulted on a US$1.75 billion (RM7.04 billion) bond late last month, will have to make interest payment on a second US$1.75 billion bond it issued, which is due tomorrow. The troubled state investment fund has not yet decided whether or not to pay, except to say that it is “exploring all options”.
The second bond carries a US$52.4 million interest payment, with a 5.99% coupon arranged by Goldman Sachs Group Inc in May 2012. The debt was issued by 1MDB Energy Ltd and proceeds were used to fund the purchase of power assets from Malaysian billionaire T Ananda Krishnan. So far, it hasn’t missed payments………………………………………..Full Article: Source

Qatar SWF, access to global debt markets cushion energy demand drop: BMI

Posted on 09 May 2016 by VRS  |  Email |Print

Qatar’s $256bn sovereign wealth fund as well as the country’s continuing ability to tap international debt markets provide the economy with “significant bulwarks against a sustained dropoff in demand” for oil and gas, BMI has said in a report.
Lower hydrocarbons prices do not present a “significant threat” to Qatar’s “fiscal sustainability,” the Fitch Group company has said in a report. Nevertheless, it said the “government will seek to tighten control over public spending and rationalise Qatar’s vast pipeline of infrastructure projects - a trend that will be positive for the economy over the longer run.”……………………………………….Full Article: Source

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