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Sovereign Wealth Funds Briefing - Category | Financials more

World’s largest sovereign fund to weigh in on executive pay controversy

Posted on 03 May 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the biggest in the world with shares in more than 9,000 companies, will add its influential voice to those of investors increasingly concerned by executives’ skyrocketing pay.
Worth nearly seven trillion kroner (US$868 billion), the fund will lay out its stance on the thorny subject in a “position paper”, a spokeswoman for the division of the Norwegian central bank responsible for managing the fund said on Monday (May 2). “It is a theme that we will watch,” Martha Skaar said………………………………………..Full Article: Source

Moody’s rate assets of SOFAZ at Ba1

Posted on 03 May 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund was rated at Ba1 for the country’s long-term issuer and senior unsecured debt ratings by the international ratings agency Moody’s Investors Service. Moreover, Moody’s confirmed state-guaranteed senior unsecured debt rating of the Southern Gas Corridor’s at Ba1, according to the report of the rating agency posted on its website on April 29.
The report left Azerbaijan’s long-term and short-term foreign-currency bond and deposit ceilings unchanged at Ba1/NP and Ba2/NP, respectively. Meanwhile, the long-term local-currency bond and deposit country ceilings also remained unchanged at Ba1………………………………………..Full Article: Source

Saudi PIF, SAMA Foreign Holdings among largest sovereign wealth funds

Posted on 03 May 2016 by VRS  |  Email |Print

Saudi Arabia’s Public Investment Fund (PIF) is now the world’s 13th largest sovereign wealth fund with assets amounting to $160 billion by the end April, the Sovereign Wealth Fund Institute (SWFI) said in its latest report.
The PIF secured its ranking after gaining $154.7 billion since the end of last year. The kingdom’s SAMA Foreign Holdings fund, which placed fourth on the list, saw its assets fall by $36.3 billion over the same period to $632.3 billion. Meanwhile, the Abu Dhabi Investment Authority (ADIA) ranked second on the list with $773 billion worth of assets………………………………………..Full Article: Source

Norway’s sovereign fund to focus on high executive pay

Posted on 02 May 2016 by VRS  |  Email |Print

Norway’s $870-billion sovereign wealth fund is focusing on executive pay, targeting high salaries at companies around the world as it seeks to exert more influence on this issue, the FT.com reported on Sunday.
The world’s largest wealth fund is looking for a first company to target, with its focus on pay in the coming months. “We have so far looked at this in a way that has focussed on pay structures rather than pay levels,” Yngve Slyngstad, Chief Executive of the fund, told the Financial Times………………………………………..Full Article: Source

Norway’s Government Pension Fund Global reports first-quarter loss

Posted on 02 May 2016 by VRS  |  Email |Print

Norway’s giant sovereign wealth fund lost NOK85bn (€9.2bn), or 0.6%, in the first three months of this year, with investments in two of the fund’s three asset classes shrinking in overall value during the the period.
According to its first-quarter report, the Government Pension Fund Global’s (GPFG) equity investments made a loss of 2.9% between January and March, fixed income assets a positive return of 3.3% and property investments a loss of 1.3%………………………………………..Full Article: Source

Norway’s sovereign fund posts negative return

Posted on 02 May 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s biggest, posted a negative return in the first quarter after being tapped by the government to balance its budget for the first time ever. The fund registered a negative return of 0.6 percent, or 85 billion kroner ($10.4 billion, 9.2 billion euros), putting its value at 7.07 trillion kroner ($867 billion, 753 billion euros) at the end of the quarter, the central bank said on Thursday.
Shares, which accounted for 59.8 percent of the fund’s portfolio, and real estate, which represented 3.1 percent, dragged the fund down, posting negative returns of 2.9 and 1.3 percent respectively………………………………………..Full Article: Source

SOFAZ assets help cushion low oil prices’ negative effect on Azerbaijani economy

Posted on 02 May 2016 by VRS  |  Email |Print

The international ratings agency Moody’s Investors Service has confirmed Azerbaijan’s long-term issuer ratings and senior unsecured debt ratings at Ba1. Moody’s also confirms that Azerbaijan’s large stock of foreign currency assets held in the State Oil Fund (SOFAZ), the country’s sovereign wealth fund, helps cushion the economy and government balance sheet, and gives Azerbaijan time to adjust to lower oil prices.
“The government retains sizeable fiscal buffers that could help it absorb shocks, specifically SOFAZ’s significant foreign currency assets,” said the report. SOFAZ’s foreign currency assets remain very large, despite declining by 9.5 percent to $33.6 billion in 2015, Moody’s said………………………………………..Full Article: Source

Norway’s sovereign wealth fund posts $US10b quarterly loss

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $US870 billion sovereign wealth fund, the world’s biggest, returned to losses in the first quarter amid some of the most turbulent markets since the financial crisis as the government started withdrawals.
The Government Pension Fund Global lost 85 billion kroner ($US10 billion), or 0.6 per cent, after rising 3.6 per cent in the fourth quarter, the Oslo-based investor said on Thursday. Its stock portfolio lost 2.9 per cent, its bonds gained 3.3 per cent and the real-estate investments fell 1.3 per cent………………………………………..Full Article: Source

Norway’s sovereign wealth fund returns -0.6% in quarter; government makes first withdrawal

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund Global, Oslo, returned -0.6% in the quarter ended March 31, with assets falling 5.3% to 7.08 trillion Norwegian kroner ($848 billion) as market volatility hit, and the government withdrew money for the first time.
In a financial update Thursday, Norges Bank Investment Management, which runs the assets of the sovereign wealth fund, said the return was equivalent to an 85 billion Norwegian kroner loss. In the three months ended Dec. 31, returns were 3.5%, or 279 billion Norwegian kroner. Over the year ended March 31, assets increased 1%………………………………………..Full Article: Source

Central Bank again becomes a buyer of Oil Fund’s currency, but not key buyer

Posted on 29 April 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. According to SOFAZ, today it has applied for sale of $50 million and sold $42.4 million through the auction.
“14 commercial banks ($32.4 million) and the Central Bank ($10 million) became the buyers,” the Fund said. At the previous auction on 26 April the Fund sold $34.9 million to the nine banks through auction. The Fund promises to continue selling currency through CBA auctions. In its turn, the Central Bank announced earlier the start of manat interventions………………………………………..Full Article: Source

How much would 5% of Saudi Aramco be worth?

Posted on 29 April 2016 by VRS  |  Email |Print

In 2005, McKinsey said Aramco was worth about $0.781 trillion. The Sovereign Wealth Fund Institute recently pegged its value at around $2.1 trillion. The Saudi deputy crown prince Mohammad bin Salman put the number at $2.5 trillion.
Mohammed al-Sabban, a Saudi former petroleum advisor, reckons even more - at least $10 trillion. But what is Saudi Aramco, the kingdom’s state-owned oil jewel, really worth? Salman talks of plans for a $2 trillion sovereign wealth fund, resting heavily on the transfer of ownership of the kingdom’s national oil company………………………………………..Full Article: Source

1MDB insists debt reduction plan still on course

Posted on 29 April 2016 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) is still on track to pay off its RM51 billion (S$17.6 billion) debt pile despite being locked in a dispute with an Abu Dhabi sovereign wealth fund, the state investor’s president Arul Kanda Kandasamy said.
1MDB signed a deal with Abu Dhabi’s International Petroleum Investment Company (IPIC) in May last year, with the Emirati firm involved in reducing the Malaysian fund’s debts by RM17 billion in return for financial assets………………………………………..Full Article: Source

Future Fund’s David Neal says low rates hurting growth

Posted on 28 April 2016 by VRS  |  Email |Print

Future Fund chief executive David Neal has warned that a prolonged period of ultra-low interest rates has reduced the probability of the fund achieving its long-term growth targets, while defending the fund’s big move into cash.
Mr Neal said the $117 billion sovereign wealth fund was not hiding under a blanket and still ran a “significantly risky” portfolio in an effort to meet its return target of the consumer price index plus 4.5 per cent………………………………………..Full Article: Source

Moody’s: 1MDB default raises contingent liability risks to sovereign

Posted on 28 April 2016 by VRS  |  Email |Print

State-owned fund 1Malaysia Development Bhd’s (1MDB) default has increased the probability that contingent liabilities, particularly through cross-defaults and an associated indemnity, will crystallise on Malaysia’s government balance sheet, a credit negative for the sovereign, according to Moody’s Investors Service.
In an issuer comment note today, Moody’s said the recent developments have increased the likelihood of the Malaysian government expending fiscal resources to pay the indemnity to Abu Dhabi sovereign wealth fund International Petroleum Investment Co (IPIC), but the risk remains contingent………………………………………..Full Article: Source

Troubled Malaysian fund defaults on $1.75bn bonds

Posted on 28 April 2016 by VRS  |  Email |Print

Troubled Malaysian state investment fund 1MDB said yesterday it had defaulted on $1.75bn in company bonds after missing an interest payment, heightening fears of a market-rattling bailout of the scandal-hit company. The fund, founded in 2009 by Prime Minister Najib Razak, is teetering on the brink of collapse amid multiple investigations around the world into allegations that billions were looted from it.
1MDB, or 1Malaysia Development Berhad, released a statement saying it was “now in default” on the bonds after missing the $50mn interest payment. It blamed a dispute with Abu Dhabi’s sovereign wealth fund, the International Petroleum Investment Co (IPIC)………………………………………..Full Article: Source

1MDB insists debt reduction plan still on course

Posted on 28 April 2016 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) is still on track to pay off its RM51 billion (S$17.6 billion) debt pile despite being locked in a dispute with an Abu Dhabi sovereign wealth fund, the state investor’s president Arul Kanda Kandasamy said.
1MDB signed a deal with Abu Dhabi’s International Petroleum Investment Company (IPIC) in May last year, with the Emirati firm involved in reducing the Malaysian fund’s debts by RM17 billion in return for financial assets………………………………………..Full Article: Source

Alibaba’s Ant Financial raises $5.8bn in largest private tech funding

Posted on 28 April 2016 by VRS  |  Email |Print

Ant Financial Services Group, the financial services affiliate of e-commerce giant Alibaba Group, closed the world’s largest private fundraising round for an internet company at $US4.5 billion ($5.8bn), valuing it at about $US60bn. It raised its latest funding round from a clutch of investors, including a Chinese sovereign wealth fund and the country’s biggest insurers.
Ant Financial has courted powerful Chinese state-owned firms in its outside fundraisings. In this round, it brought in new investors including $US740bn sovereign wealth fund China Investment’s CIC Capital and a subsidiary of state-owned China Construction Bank………………………………………..Full Article: Source

Malaysia’s 1MDB in default as Abu Dhabi dispute escalates

Posted on 27 April 2016 by VRS  |  Email |Print

Malaysia’s 1MDB defaulted on a $1.75bn bond on Tuesday, triggering cross defaults on two other notes totalling $1.9bn and raising the stakes in a dispute between the troubled state investment fund and an Abu Dhabi counterpart.
The fund’s announcement that it had failed to make an interest payment of $50m on 5.75 per cent bonds prompted a fall of as much as 1.2 per cent in the ringgit and dented investor confidence in Malaysian sovereign debt, with the cost of insuring against default with credit-default swaps rising 4 basis points to 167bp………………………………………..Full Article: Source

Malaysia’s Reputation Takes Another Hit as State Fund Defaults

Posted on 27 April 2016 by VRS  |  Email |Print

The Malaysian government’s reputation took another hit on Tuesday after state-owned 1Malaysia Development Bhd. defaulted on a $1.75 billion bond. The ringgit fell and 1MDB’s dollar debt slumped.
The development fund withheld a $50 million coupon payment amid a wider dispute with Abu Dhabi’s International Petroleum Investment Co., the co-guarantor of the bonds. The missed payment triggered cross defaults on 7.4 billion ringgit ($1.9 billion) of 1MDB debt, including borrowings that are guaranteed by the Malaysian government, the fund said in a statement on Tuesday………………………………………..Full Article: Source

Ringgit Declines for Fourth Day as 1MDB Default Drags on Stocks

Posted on 27 April 2016 by VRS  |  Email |Print

The ringgit fell for a fourth day in its longest stretch of losses since November and stocks dropped to a six-week low as troubled state investment company 1Malaysia Development Bhd. confirmed it’s in default after missing an interest payment on bonds.
The company is withholding a $50 million payment on $1.75 billion of dollar notes amid a dispute with International Petroleum Investment Co., Abu Dhabi’s sovereign wealth fund that is the co-guarantor of the bonds maturing in 2022, according to an e-mailed statement. The deadline was on Monday………………………………………..Full Article: Source

Malaysia’s 1MDB Scandal Confirmed Investment Funds Defaults on US $1.75 Billion Bond

Posted on 27 April 2016 by VRS  |  Email |Print

Malaysia’s 1Malaysia Development Berhad (1MDB) confirmed on Tuesday, April 26 that the non-payment of US$ 50.3 million (S $ 68.1 million) in interest over a now defaulted US $ 1.75 billion bond had resulted in cross-defaults for RM 7.4 billion (S $ 2.6 billion) in other bonds.
The failure to pay interest that is due on Monday, April 25 arose due to a dispute with International Petroleum Investment Company (IPIC), an Abu Dhabi state-owned sovereign wealth fund, which had guaranteed two US $ 1.75 billion 1MDB funds due in 2022………………………………………..Full Article: Source

Azerbaijan’s Central Bank buys $30M from State Oil Fund

Posted on 27 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $4.9 million to five banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ’s message said Apr. 26. Meanwhile, the CBA, which obtained $30 million, has become for the first time one of the buyers of SOFAZ’s currency resources.
SOFAZ offered $50 million for sale through the auction, according to the message. 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

Saudi Arabia to sell less than 5% of Aramco, create $2 trillion fund

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia said Monday it would create the world’s largest wealth fund and sell shares in state energy giant Aramco as it unveiled a vast plan to transform its oil-dependent economy.
The announcement of the long-term reform programme, dubbed “Saudi Vision 2030″, marks the beginning of a hugely ambitious attempt to move Saudi Arabia beyond oil, the backbone of its economy for decades, amid a steep fall in prices………………………………………..Full Article: Source

Abu Dhabi Fund Prepared to Pay Interest if Malaysia’s 1MDB Defaults on Bond

Posted on 26 April 2016 by VRS  |  Email |Print

A partner of troubled Malaysian government investment fund 1Malaysia Development Bhd. said Monday it would pay $50 million in overdue interest owed on a 1MDB bond, but only after the bond is declared in default. The default could trigger further defaults on billions more in debt.
The partner, Abu Dhabi sovereign-wealth fund International Petroleum Investment Corp., is a guarantor of the $1.75 billion bond privately issued by 1MDB in 2012, and will pay the interest under those obligations, IPIC said in a filing to the London Stock Exchange………………………………………..Full Article: Source

New Zealand Superannuation Fund divests interests in 3 offshore funds

Posted on 26 April 2016 by VRS  |  Email |Print

New Zealand Superannuation Fund, New Zealand’s sovereign wealth fund (SWF), has divested its interests in three offshore private equity (PE) funds with, with the consideration and buyer kept confidential. The sales was reported by New Zealand publication Scoop News.
Based on figures from its website, the NZ Super Fund claims to maintains a capitalisation of assets under management (AUM) worth NZ$29.6 billion (US$20.35 billion), with a rate of return per annum after costs and before taxes of 9.44 per cent, as of 31 March 2016………………………………………..Full Article: Source

Samruk Kazyna’s 2016 net income seen plunging on low oil price, weak demand

Posted on 26 April 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk Kazyna’s net income grew in 2015 but is forecast to nosedive this year, trailing low oil prices and weakening demand in major trading partners Russia and China, the company said on Monday.
Samruk’s net income increased by 30 percent to 304.8 billion tenge ($913.78 million) last year, due mainly “to the positive effect of exchange rate differences”, the fund said, referring to the sharp devaluation of the tenge in 2015. The fund’s net income is expected to fall sharply to 100.8 billion tenge this year………………………………………..Full Article: Source

Norway boosts withdrawals from sovereign wealth fund

Posted on 26 April 2016 by VRS  |  Email |Print

Norway increased withdrawals from the nation’s wealth fund again in March, running ahead of estimates made by the central bank just two months ago. The government withdrew 7.4 billion kroner ($898 million), according to monthly data published by Norwegian Government Agency for Financial Management. That’s up from 6.7 billion kroner in each of the first two months of the year, bringing the year-to-date withdrawals to 20.8 billion kroner.
At the faster pace, full-year withdrawals would top an estimate of 80 billion kroner given in February by the central bank governor, who oversees the $860 billion fund. The government of western Europe’s biggest crude producer is dipping into its piggy bank to meet budget needs amid plunging oil prices………………………………………..Full Article: Source

“The Government Is Crushing The Piggy Bank” - Norway Boosts Withdrawals From Its Sovereign Wealth Fund

Posted on 26 April 2016 by VRS  |  Email |Print

As it deals with the economic slowdown and a plunge in oil prices, Norway has turned to its massive sovereign wealth fund in order to cover 2016 budget deficits, in continuation of a trend noted here first last October. As Bloomberg reports, the country withdrew $898 million in March from the fund, putting the year-to-date total at roughly $3.1 billion, a run rate that is higher than the estimate the central bank governor gave just this past February.
As a reminder, the Norwegian Sovereign Wealth Fund, the biggest in the world, has been the beneficiary of soaring oil prices in the recent years, pushing its market value to a record high 7.5 trillion Kroner at the end of 2015, or just over $900 billion………………………………………..Full Article: Source

Abu Dhabi says to fund wider 2016 deficit mainly via bond issues

Posted on 25 April 2016 by VRS  |  Email |Print

Abu Dhabi expects to post a wider budget deficit of 36.9 billion dirhams ($10.1 billion) in 2016 because of low oil prices, and plans to cover the gap mainly with international bond issues, a prospectus for a bond sale by the emirate showed.
The prospectus noted that Abu Dhabi’s sovereign wealth fund, the Abu Dhabi Investment Authority, could be directed to pay dividends to the government to help cover any deficit. But it did not say whether this was likely to be done in 2016………………………………………..Full Article: Source

Australia’s Future Fund in $1bn blow

Posted on 25 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund has swung into ­reverse, shedding $1 billion in three months as volatile market conditions exact a toll. The Federal Government’s Future Fund shrank 0.9 per cent in the March quarter, dragging the return so far this financial year to a anaemic 0.2 per cent.
It is the first time in four years the fund — set up a decade ago to pay for superannuation liabilities in the public sector — has gone backwards in a quarter. The slide came after a bruising opening to 2016 on the stockmarket. The benchmark ASX 200 index fell almost 8 per cent across January and February and only pared back half of those losses in March………………………………………..Full Article: Source

Australian Sovereign Wealth Fund Lifts Cash Levels Close to 25%

Posted on 25 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund increased the amount of cash it holds to almost one quarter of its A$117.4 billion ($91 billion) portfolio as it says global central banks have less firepower to respond to economic weakness.
The so-called Future Fund raised its holdings in cash to 22.9 percent as of the end of March, citing the prospect for lower future returns, according to a statement Friday. Since being formed in 2006, its assets have almost doubled from A$60.5 billion, with the fund returning 7.4 percent per year………………………………………..Full Article: Source

Future Fund cash holdings rise again after first-quarter loss

Posted on 25 April 2016 by VRS  |  Email |Print

The Future Fund has boosted its cash holdings by a further $2.4 billion to $26.8 billion as it posted its first negative quarterly return since June 2012. The Australian sovereign wealth fund returned a modest negative 0.9 per cent, as its assets declined to $117.39 billion from $118.4 billion from the start of the year as it continued to shift its allocation towards more defensive investments such as cash.
The high cash position, which accounts for 23 per cent of assets, and falling returns is highlighting the challenge facing the fund in attempting to avoid taking excessive investment risk while still hitting its mandated target………………………………………..Full Article: Source

Australian Sovereign Wealth Fund Lifts Cash Levels Close to 25%

Posted on 22 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund increased the amount of cash it holds to almost one quarter of its A$117.4 billion ($91 billion) portfolio as it says global central banks have less firepower to respond to economic weakness.
The so-called Future Fund raised its holdings in cash to 22.9 percent as of the end of March, citing the prospect for lower future returns, according to a statement Friday. Since being formed in 2006, its assets have almost doubled from A$60.5 billion, with the fund returning 7.4 percent per year………………………………………..Full Article: Source

Future Fund posts first quarterly loss since 2012

Posted on 22 April 2016 by VRS  |  Email |Print

Australia’s sovereign wealth fund, the Peter Costello-chaired Future Fund, has booked its first quarterly loss in years, which has whittled away the investment return over the financial year-to-date.
The disappointing result came as Mr Costello warned of persistent lower returns, with the Future Fund continuing to drive its holdings into safer cash assets as global central banks shave their ability to further stimulate the weak economy. The Future Fund missed its quarterly target of returns of 1.2 per cent, logging a negative 0.9 per cent return over the three months through March………………………………………..Full Article: Source

Azerbaijani banks buy almost $3M from State Oil Fund

Posted on 22 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan sold $2.9 million to eight banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said in a statement on April 21. SOFAZ offered $50 million for sale through the auction.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Fortis to sell minority stake in ITC to Singapore’s sovereign wealth fund

Posted on 21 April 2016 by VRS  |  Email |Print

Fortis Inc. has signed a deal to help finance its blockbuster US$11.3 billion acquisition of U.S. electric transmission company ITC. The utility company announced Wednesday it has an agreement that will see Singapore’s sovereign wealth fund take a minority stake in ITC Holdings Corp. for US$1.228 billion in cash.
Under the agreement, GIC Private Ltd. will acquire a 19.9 per cent equity interest in ITC Holdings Corp. The ITC deal announced in February would expand Fortis’s holdings in the U.S. and give it access to more than 25,000 kilometres of transmission lines………………………………………..Full Article: Source

SOFAZ earns over 350M manats in 1Q2016 due to exchange rate difference

Posted on 21 April 2016 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund’s (SOFAZ) extra-budgetary revenues related to the revaluation of foreign exchange totaled 354.1 million Azerbaijani manats in 1Q2016, said SOFAZ’s message Apr. 20.
The official exchange rate is 1.5128 AZN/USD as of Apr. 20. As of Apr. 1, 2016, SOFAZ’s assets have increased by 2 percent - up to $34.25 billion compared to the beginning of 2016 ($33.57 billion). SOFAZ’s budget revenues reached 2.02 billion manats during the reporting period, while the expenditures - 1.95 billion manats, said the message………………………………………..Full Article: Source

SOFAZ assets gets 2% rise

Posted on 21 April 2016 by VRS  |  Email |Print

The revenues from managing assets for first quarter 2016 amounted to 148.8 mln. manat. Budget revenues of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) for the period of January-March, 2016 reached 2,023.1 million manat, while budget expenditures constituted 1,946.7 million manat, APA reports.
Revenue of 1,874.3 mln. manat was received from implementation of oil and gas agreements, including 1,869.8 mln. manat from the sale of profit oil and gas, 0.1 mln. manat as bonus payments and 4.4 mln. manat as transit payments………………………………………..Full Article: Source

Malaysia’s 1MDB bonds rally as fund row stokes volatility

Posted on 20 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd’s bonds maturing in March 2023 rose, halting a three-day slide on concern the state investment company may default on its debt obligations after a spat with Abu Dhabi’s sovereign wealth fund.
The US$3 billion 4.4 per cent notes jumped 4.3 cents to 84.3 cents on the dollar to yield 7.36 per cent as of 1:50 pm in Hong Kong, according to Bloomberg-compiled prices. The securities slumped 12.4 cents on April 18, the most since at least April 2014. The company’s US$1.75 billion of 5.99 per cent notes due May 2022 fell 3.9 cents to 102 cents Monday………………………………………..Full Article: Source

Graft Denials Come Under Strain in Malaysia Fund Scandal

Posted on 20 April 2016 by VRS  |  Email |Print

Malaysia’s prime minister and the company he founded, 1MDB, have weathered a year-long barrage of corruption allegations with nothing-to-see-here assurances, but a string of recent revelations is placing those denials under growing strain.
On Monday an Abu Dhabi sovereign-wealth fund which was helping 1MDB recover from massive debts abruptly withdrew its safety net, declaring the Malaysian state-owned company in default on a $1.1 billion loan. The move centres on suspicions that 1MDB — rather than repay the loan to the Abu Dhabi fund, International Petroleum Investment Co (IPIC) — instead diverted the money………………………………………..Full Article: Source

NSIA to fund infrastructure with $250m additional capital

Posted on 20 April 2016 by VRS  |  Email |Print

Nigeria Sovereign Investment Authority, NSIA, managers of Nigeria sovereign wealth fund, has said that 40 per cent of the additional $250 million (an equivalent of N49.3 billion) allocated to it by the Federal Government February this year would be deployed to fund on-going infrastructure projects on behalf of the government.
The Authority said that another 40 per cent of the fund would be invested in alternative assets classes, an area it recorded remarkable success in 2015, while the remaining 20 per cent would be deployed to the Stabilisation Fund………………………………………..Full Article: Source

Azerbaijani banks buy almost $20M from State Oil Fund

Posted on 20 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan sold $19.9 million to eight banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ’s message said Apr. 19. SOFAZ offered $50 million for sale through the auction, according to the message.
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

Abu Dhabi Fund Calls 1MDB in Default After Missed Payment

Posted on 19 April 2016 by VRS  |  Email |Print

International Petroleum Investment Company says debt deal with Malaysian fund has been terminated. A key Middle Eastern business partner of 1Malaysia Development Bhd. said the Malaysian state development fund has failed to make a $1.1 billion payment as part of a debt-restructuring agreement and that as a result a debt deal between the two entities has been terminated.
The announcement, made in a London Stock Exchange filing by the International Petroleum Investment Company, an Abu Dhabi sovereign-wealth fund, marks a deterioration in relations between the two funds and signals fresh complications for 1MDB as it tries to work its way out from under billions of dollars of debt………………………………………..Full Article: Source

1MDB risks US$50m default as IPIC refuses to step in

Posted on 19 April 2016 by VRS  |  Email |Print

1MDB is facing the risk of default as Abu Dhabi-owned sovereign wealth fund International Petroleum Investment Company (IPIC) is no longer willing to service bond interest for the Malaysian fund, according to The Straits Times of Singapore.
1MDB has a US$50 million interest payment for its US$3.5 billion bond, which is due tomorrow. “Malaysian government officials, who spoke to The Straits Times on condition of anonymity, said IPIC has informally told 1MDB that it has no intention of honouring the interest payment because of the alleged default of the bond agreement………………………………………..Full Article: Source

Malaysia’s 1MDB at Risk of Default as Partner Ends Bond Support

Posted on 19 April 2016 by VRS  |  Email |Print

Malaysia’s state investment company, already a target of global investigations into allegations of money laundering and embezzlement, has another major problem: It now faces the risk of sinking into default.
1Malaysia Development Bhd. failed to make a payment of more than $1 billion in connection with a loan made last year by Abu Dhabi’s sovereign wealth fund, according to a London stock exchange filing. That means that 1MDB and Malaysia’s finance ministry “are in default,” Abu Dhabi’s International Petroleum Investment Co. said………………………………………..Full Article: Source

Qatar and CVC drop £6bn Sainsbury takeover bid

Posted on 18 April 2016 by VRS  |  Email |Print

The Qatar sovereign wealth fund and private equity group CVC have ended plans to launch a dramatic takeover approach for the UK supermarket group J Sainsbury. The Qatar Investment Authority (QIA) is understood to have joined forces with CVC Capital Partners and brought in Canadian property specialist Brookfield group earlier this year to launch a takeover bid for the grocer, according to Sky News Business.
The plans received formal approval from the City’s Takeover Panel in a sign of how close the consortium got to going public with the offer. It is understood that city grandee Archie Norman, who is currently chairman of ITV and made his reputation as chairman of Asda, was identified as a potential chairman of Sainsbury’s………………………………………..Full Article: Source

1MDB affair a simple confidence trick

Posted on 18 April 2016 by VRS  |  Email |Print

The senior management of 1MDB, we are led to understand from last week’s public statements, sent US$3.5bn around four years ago to a company they believed was Aabar Investments PJS, owned by International Petroleum Investment Co, Abu Dhabi’s sovereign wealth fund.
But the money didn’t get to that particular Aabar. Instead it went to an eponymous Aabar, in the form of Aabar Investments PJS Limited, a British Virgin Islands-registered company which had nothing to do with the Middle East state’s sovereign wealth fund. It was just that by some strange coincidence it just happened to have exactly the same name with a few letters added on at the end in the form of “Limited.”……………………………………….Full Article: Source

Local bank buys $20M from SOFAZ

Posted on 14 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $20 million to a bank through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said Apr.13. SOFAZ offered $50 million for sale through 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. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Malaysia fund 1MDB’s payment to Abu Dhabi fund IPIC may have ended up in the movie business

Posted on 13 April 2016 by VRS  |  Email |Print

The trail of breadcrumbs from a troubled Malaysian state investment fund took another twist Tuesday when Swiss authorities said some of the money ended up in the movie business.
On Monday, an Abu Dhabi sovereign wealth fund, International Petroleum Investment Co. (IPIC), and its subsidiary Aabar Investments PJS, said that they never received $3.5 billion in payments from troubled 1Malaysia Development Berhad (1MDB). The payments were related to a guarantee for a bond placed by Goldman Sachs………………………………………..Full Article: Source

Abu Dhabi fund IPIC says it didn’t receive billions in payments sent by Malaysia fund 1MDB

Posted on 12 April 2016 by VRS  |  Email |Print

The mystery over who controlled a British Virgin Islands-registered company that received $3.5 billion from Malaysia’s scandal-tainted state fund 1MDB deepened on Monday when a company in the Middle East with an almost identical name said the BVI firm did not belong to it.
Abu Dhabi’s sovereign wealth fund, International Petroleum Investment Co. (IPIC), and its subsidiary Aabar Investments PJS said in a joint statement the BVI firm with an almost identical name, Aabar Investments PJS Ltd., “was not an entity within either corporate group.”……………………………………….Full Article: Source

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