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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

SOFAZ reveals revenues from largest oil project

Posted on 09 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

SOFAZ reveals revenues from Shah Deniz

Posted on 06 May 2016 by VRS  |  Email |Print

Revenues of Azerbaijan’s state oil fund from the project for developing the country’s Shah Deniz gas and condensate field from 2007 to May 1, 2016, totaled $2.488 billion. SOFAZ announced that it has received $45 million from Shah Deniz project in January-April 2016. Some $5 million of this figure was received in April.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserve is estimated at 1.2 trillion cubic meters of gas. The shareholders in the contract are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent)………………………………………..Full Article: Source

Malaysia Facing Bankruptcy Due to 1MDB Scandal, Warns Ex-PM

Posted on 06 May 2016 by VRS  |  Email |Print

Former Malaysian Prime Minister Mahathir Mohamad warned Thursday the country faces bankruptcy because of an ongoing scandal with the state-owned 1MDB fund. “The government will have financial deficits which may lead to bankruptcy if the (1MDB) loans are not serviced and the principal paid,” Mahathir stated in an online article and social media posts.
The former prime minister said any defaults by the government-owned company would affect Malaysia’s credit worthiness “and the government may not be able to borrow any more in the market.”……………………………………….Full Article: Source

Outflows from Norwegian oil fund will not change strategy, says NBIM

Posted on 05 May 2016 by VRS  |  Email |Print

Falling inflows from oil revenue to Norway’s leviathan Government Pension Fund Global (GPFG) will not change the NOK7.1trn (€762bn) sovereign wealth fund’s investment strategy or its need for diversification, according to the fund’s second in command.
Trond Grande, deputy chief executive at Norges Bank Investment Management (NBIM), which manages the GPFG, said in an interview with IPE: “The fund and its investment strategy are basically the same, regardless of growing much more or when there are withdrawals from the fund.”……………………………………….Full Article: Source

Azerbaijan’s Oil Fund got almost $1.54 bn from sale of profit hydrocarbons for Jan-Apr

Posted on 05 May 2016 by VRS  |  Email |Print

Over Jan-Apr 2016 the State Oil Fund of Azerbaijan (SOFAZ) received $1.538 million from the sale of profit oil from oilfield block of Azeri-Chirag-Gunashli (ACG) and gas from Shah Deniz field. SOFAZ reports that out of this amount, $1.493 bn accounted for export of profit oil from ACG and $45 million for sale of profit gas from Shah-Deniz.
“According to estimates, SOFAZ received totally $118.502 bn from the sale of profit oil of Azerbaijan from ACG from 2001 to 1 May 2016 and about $2.5 bn from export of gas from Shah Deniz field from 2007 and before 1 May 2016,” the Fund said………………………………………..Full Article: Source

1MDB Said to Seek Waiver on Early Debt Repayment After Default

Posted on 05 May 2016 by VRS  |  Email |Print

1Malaysia Development Bhd., the state-owned investment company that defaulted on a $1.75 billion bond last week, is asking investors to hold off any request for early repayment on its Islamic debt, according to a person familiar with the matter.
1MDB has submitted a request to the trustee of 7.24 billion ringgit ($1.8 billion) of sukuk for a waiver on the “acceleration process” for the bonds, the person said, asking not to be identified because the information isn’t public. The investment firm needs the support of at least 25 percent of bondholders for the waiver, the person said………………………………………..Full Article: Source

Temasek Unit Backs Startup Diamond Exchange as Trade Kicks Off

Posted on 05 May 2016 by VRS  |  Email |Print

Singapore state investment company Temasek Holdings Pte is throwing its weight behind a diamond exchange that began trading in the city-state on Thursday, backing the project through venture-capital unit Vertex Venture Holdings.
Investors can trade single stones as well as so-called baskets of investment-grade diamonds electronically for physical settlement, the Singapore Diamond Investment Exchange said in a statement. At first, the exchange aims to support spot trading, with plans for derivatives and exchange-traded products………………………………………..Full Article: Source

Argyle ‘to manage $62m pool from Temasek unit’

Posted on 05 May 2016 by VRS  |  Email |Print

A unit of Temasek Holdings has given a $62 million pool of investments to Argyle Street Management, in the second such allocation by the firm to the Hong Kong asset manager, according to people familiar with the matter.
Mainboard-listed TIH Ltd, the private equity firm owned by Argyle, will manage the investment, which includes stakes in Whiterock Medical, a locally based distributor of medical instruments, and Australian coal operations company Carbon Energy, the people said, requesting anonymity because the information is private………………………………………..Full Article: Source

Azerbaijan’s SOFAZ continues funding of floating drilling rig project

Posted on 04 May 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund has issued $718.6 million to fund construction of a new generation floating drilling rig in Azerbaijan since the project launch. The Fund told Trend that $22.6 million was issued for the project in the first quarter of 2016.
The project cost hits $1,117 billion. The drilling operator is “Caspian Drilling Company” (CDC), in which SOCAR owns 92.44-percent share. The Singaporean Keppel FELS Limited was chosen as the contractor of the drilling rig’s construction………………………………………..Full Article: Source

SOFAZ’s 2015 budget execution project recommended for approval by Azerbaijan’s president

Posted on 04 May 2016 by VRS  |  Email |Print

The supervisory board of the State Oil Fund of Azerbaijan (SOFAZ) has approved the fund’s 2015 annual report and auditor’s (PricewaterhouseCoopers) report submitted by the executive director of the fund, SOFAZ said in a message May 3.
The supervisory board has recommended SOFAZ’s 2015 budget execution project for the approval by the president of Azerbaijan. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Malaysian bondholders back 1MDB

Posted on 04 May 2016 by VRS  |  Email |Print

Beleaguered 1Malaysia Development Berhad (1MDB) won some welcome respite last week after local investors said they would take no action on a cross default on RM7.4 billion (US$1.89 billion) of ringgit-denominated bonds.
Market sources said major bondholders, holding about a quarter of the RM5 billion government-guaranteed 5.75% due 2039s, were unlikely to accelerate the bonds after the state-owned fund triggered a cross default last Monday, following a missed coupon on notes of US$1.75 billion, carrying a guarantee from an Abu Dhabi sovereign wealth fund………………………………………..Full Article: Source

EPF says unperturbed as 1MDB defaults on some debt

Posted on 04 May 2016 by VRS  |  Email |Print

The Employees Provident Fund (EPF) said today is not worried about its RM200 million investment in 1Malaysia Development Bhd (1MDB) that last month defaulted on two of its bonds.
EPF chief executive Datuk Shahril Ridza Ridzuan said the retirement fund’s executives have not deliberated the matter, which was prompted after 1MDB missed a US$50 bond interest payment. “The trustees have yet to say there is a cross default… what we do next is dependent upon what the trustee tells us, so, for the moment we will wait for the trustees to get back to us,” Shahril said……………………………………….Full Article: Source

World’s biggest fund will use its power to end boardroom greed

Posted on 03 May 2016 by VRS  |  Email |Print

The world’s biggest fund is to use its huge influence to vote against fat cat pay and boardroom bad behaviour. Norway’s sovereign wealth fund - which has £595bn ($NZ1,240 billion) invested around the globe - will break its silence on excessive salaries at major companies and plans to shame the top payers.
It is a highly important move as the fund holds a stake in most of the world’s biggest firms. Last week the fund took the first steps towards a more active role on pay when it voted against a bonus plan at mining firm Weir that would have seen directors get a huge pay-off regardless how the company performed. It also voted against the £7.2m pay of Anglo American boss Mark Cutifani………………………………………..Full Article: Source

Norwegian wealth fund to focus on executive pay at AGMs

Posted on 03 May 2016 by VRS  |  Email |Print

Head of world’s biggest wealth fund says levels of pay – not just structures – are now becoming a matter for international investor concern. Boardroom bosses have been put on alert that their pay has moved beyond being a focus for UK investors after the biggest wealth fund in the world said it was scrutinising pay deals.
At a time when the amount of revolts in this year’s annual general meeting season are coming thicker and faster than those in recent years, the Norway oil fund has revealed it is preparing to target high pay………………………………………..Full Article: Source

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

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