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CVC buys out Carlyle to take the wheel of RAC

Posted on 02 December 2015 by VRS  |  Email |Print

The RAC has a new private equity owner after CVC, the European buyout group, bought out Carlyle’s stake in the roadside recovery company. The investment will be CVC’s first using a separate fund it has raised for holding longer-term stakes in companies — a sign of the future direction of the buyout industry.
GIC, the Singaporean sovereign wealth fund that bought almost half of RAC last year from Carlyle, will retain its stake under the transaction. While Carlyle had been looking to list the RAC before GIC acquired its stake last year, “the opportunity here for us was to monetise our investment, and not to float and wait to realise liquidity over a longer period,” Andrew Burgess, a managing partner at Carlyle, said………………………………………..Full Article: Source

Did Tony Blair pave the way for Manchester City’s £265m deal with Chinese firms?

Posted on 02 December 2015 by VRS  |  Email |Print

Tony Blair took the chairman of Manchester City to meet senior officials in China two years before the country bought a large stake in Britain’s richest football club. The former prime minister introduced Khaldoon Al Mubarak to high-level contacts in 2013, raising the possibility that he laid the groundwork for a £265 million investment deal announced on Tuesday by the club.
Blair, who advises an Abu Dhabi sovereign wealth fund, is estimated to be worth in the region of £60 million earned on the back of lucrative consultancy deals set up since leaving Downing Street in 2007. He has separately lobbied the Treasury on UAE’s behalf as Abu Dhabi United Group, Manchester City’s owner, was attempting to secure a £1 billion property deal in Manchester………………………………………..Full Article: Source

Temasek Holdings Private Ltd Decreased Stake in Thermo Fisher Scientific

Posted on 02 December 2015 by VRS  |  Email |Print

Temasek Holdings Private Ltd decreased its stake in Thermo Fisher Scientific Inc by 45% based on its latest Q3 2015 regulatory filing with the SEC. Temasek Holdings Private Ltd sold 2.37M shares as the company’s stock declined 6.53% with the market.
The institutional investor held 2.90 million shares of the industrial machinery and components company at the end of Q3, valued at $354.53M, down from 5.27 million at the end of the previous reported quarter. Temasek Holdings Private Ltd who had been investing in Thermo Fisher Scientific Inc since many months, could be less bullish the $55.95B market cap company. (Press Release)

Chinese buyers running rule over FTSE 100 InterContinental

Posted on 01 December 2015 by VRS  |  Email |Print

Chinese buyers are running a rule over FTSE 100 hotels group IHG, according to weekend reports, sending its shares higher in early morning trade today.The sovereign wealth fund, China Investment Corp, along with Shanghai Jin Jiang International Hotels Group and airline owner HNA Group are cited as possible suitors.
In opening deals, IHG shares topped the FTSE 100 leader board, up 28p, or 1.1 per cent, to 2,517p. IHG, which owns the Crowne Plaza and Holiday Inn brands, is thought to be exposed after rival Starwood Hotels & Resorts Worldwide recently agreed to a takeover by Marriott………………………………………..Full Article: Source

World’s largest public pension fund posts $64 billion loss

Posted on 01 December 2015 by VRS  |  Email |Print

Japan’s public pension reserve fund, the largest of its kind in the world, posted its biggest quarterly loss since the financial crisis for the quarter through September, dragged down by a global stock selloff. The Government Pension Investment Fund lost ¥7.89 trillion ($64.22 billion) in the three months to September, or 5.59%, bringing the value of its total assets to ¥135.1 trillion. That was the largest percentage-point fall on quarter since 2008.
The release gives a view of how pension funds, endowments and sovereign-wealth funds around the world were hit by a global selloff that erased trillions of dollars in value from financial markets amid concerns about growth in China and expectations for an interest-rate increase in the U.S. Norway’s sovereign-wealth fund, the largest in the world, lost 4.9% in the third quarter, its worst quarter in four years………………………………………..Full Article: Source

Putting more money into SWF is right thing to do, says Orji

Posted on 30 November 2015 by VRS  |  Email |Print

Barely three years after Uche Orji pioneered the Nigerian Sovereign Investment Agency (NSIA), his leadership has turned around the fortunes of the agency. The additional $250 million injected into NSIA by its shareholders, he believes, is a vote of confidence in its management.
The development is that we have a very successful engagement with the National Economic Council which resulted in what we believe is a vote of confidence, as evidenced by the additional contribution that has been made to the Sovereign Wealth Fund of $250 million………………………………………..Full Article: Source

BTG Pactual to sell Brazil hospital stake to GIC, source says

Posted on 30 November 2015 by VRS  |  Email |Print

Grupo BTG Pactual SA has agreed to sell its 12 percent stake in Rede D’Or São Luiz SA, Brazil’s largest hospital chain, to Singapore’s sovereign wealth fund GIC Pte Ltd for almost 2.5 billion reais ($633 million), a source directly involved in the deal said on Sunday.
An announcement could take place early on Monday, said the source, who requested anonymity in order to speak freely about the deal. Executives at the São Paulo-based bank had been negotiating exiting Rede D’Or since August, although the arrest last week of BTG Pactual’s chairman, André Esteves, sped up talks, two other sources said………………………………………..Full Article: Source

Minister: Do you want 1MDB to go bankrupt?

Posted on 30 November 2015 by VRS  |  Email |Print

Damned if it does, and damned if it doesn’t – Communications and Multimedia Minister Salleh Said Keruak mused whether people would rather see 1MDB bankrupt instead. He said some quarters are unhappy that the state investment company borrowed billions of ringgit for its investments and want the debt settled to mitigate its consequences, which the company has been trying to do.
At the same time, however, these people are also unhappy when local companies such as TNB expressed interest in buying 1MDB’s assets, and deemed this to be a “bailout”, he said………………………………………..Full Article: Source

1MDB Aims To Resolve Debt Issue, Dewan Told

Posted on 27 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) aims to resolve its debt and cashflow problem without the government’s financial assistance, said Deputy Finance Minister Datuk Johari Abdul Ghani. He said the sovereign wealth fund implemented its strategic rationalisation plan early this year to resolve its RM42 billion debt.
“If all the strategic plans are implemented quickly and without any hurdles, it would reduce 1MDB’s debt interest charges,” Johari said when replying to Rantau Panjang MP Siti Zailah Mohd Yusoff in Parliament ……………………………………….Full Article: Source

Abu Dhabi-backed consortium in $7bn Australian utilities deal

Posted on 27 November 2015 by VRS  |  Email |Print

A consortium including Abu Dhabi Investment Authority (ADIA) is to invest A$10.3 billion ($7 billion) in one of Australia’s biggest utilities networks. Under the deal, the NSW Electricity Networks (NSWEN) consortium will take a 99-year lease on the TransGrid electricity network in New South Wales.
NSWEN is led by Canadian pension fund CDPQ (Caisse de dépôt et placement du Québec), which has a 25 percent stake, and also includes Tawreed Investments – a wholly-owned subsidiary of ADIA; Spark Infrastructure, Hastings Funds Management (which is manager of the Utilities Trust of Australia), and Wren House Infrastructure Management, a wholly owned investment vehicle of the Kuwait Investment Authority (KIA)………………………………………..Full Article: Source

Malaysia’s scandal-hit 1MDB sells energy assets for $2.3B

Posted on 26 November 2015 by VRS  |  Email |Print

Malaysia’s beleaguered sovereign wealth fund 1Malaysia Development Berhad (1MDB) has sold its energy assets for 9.83 billion ringgit ($2.3 billion) to a Chinese nuclear power supplier, in a move that should help it cut its debt burden.
As part of the deal, which is expected to be completed in February 2016, China General Nuclear Power and its subsidiaries will acquire the Edra group of companies and assume all the relevant gross debt and cash. This transaction was a major milestone in the 1MDB rationalization plan that was presented to Malaysia’s cabinet on May 29, 1MDB said in a statement………………………………………..Full Article: Source

China’s Clout in Malaysia Set to Grow After 1MDB Deal

Posted on 25 November 2015 by VRS  |  Email |Print

China’s $2.3 billion deal to buy power assets from a debt-ridden Malaysian government-investment fund could give Beijing greater sway in the Southeast Asia nation and pave the way for Chinese companies to win a string of coveted infrastructure deals.
State-owned China General Nuclear Power Corp. agreed to pay 9.83 billion Malaysian ringgit ($2.3 billion) in cash and take on an unspecified amount of debt for a group of power plants from 1Malaysia Development Bhd., or 1MDB………………………………………..Full Article: Source

Shell wins backing of Qataris for BG takeover

Posted on 25 November 2015 by VRS  |  Email |Print

One of the biggest shareholders in Royal Dutch Shell has thrown its weight behind the oil group’s £43 billion takeover of BG Group, despite mounting concerns about the impact of plunging oil prices on the commercial logic that underpins the deal.
The Qatar Investment Authority, the sovereign wealth fund that holds a stake of up to 2 per cent in the Anglo-Dutch group and also is a shareholder in BG, is understood to be “fully supportive” of the proposed transaction, which was announced in April. The tie-up, which has been approved by Brazilian and European antitrust authorities, is awaiting clearance………………………………………..Full Article: Source

Irish SWF to withdraw billions from asset managers

Posted on 25 November 2015 by VRS  |  Email |Print

Ireland’s government will take several billion dollars out of the Ireland Strategic Investment Fund, the country’s sovereign wealth fund (SWF), over the next five years to spend on helping boost the Irish economy, the Financial Times reports.
The fund, which has $8.4 bn in investable assets, will withdraw funds from global investment managers but continue to invest with asset managers that have funds focused on Ireland and in other areas it considers will help the Irish economy, the newspaper reports, citing fund director Eugene O’Callaghan………………………………………..Full Article: Source

The Sovereign Wealth Fund Discount: Evidence From Public Equity Investments

Posted on 25 November 2015 by VRS  |  Email |Print

Among state-owned investors, sovereign wealth funds (SWFs) play an especially prominent role, with investable assets estimated at over $4 trillion and growing faster than any other institutional investor group.
The rapid rise of SWFs begs a question: can state-sponsored funds, such as SWFs, ever act as objective, commercially driven long-term global investors, managing their nation’s wealth as investment fiduciaries of their citizens? Our paper addresses this issue by studying the impact of SWF investment on firm value………………………………………..Full Article: Source

Alaska Permanent falls 4.4% in third quarter

Posted on 24 November 2015 by VRS  |  Email |Print

Alaska Permanent Fund Corp., Juneau, returned -4.4% for the quarter ended Sept. 30, ahead of its -5.5% benchmark, said a news release from the $50.5 billion sovereign wealth fund. Falling global equity markets drove much of the decline in the fund’s first quarter of its fiscal year.
Domestic equities returned -7.7% for the quarter; international equities, -12.9%; and global equities, -8.8%. Top performers included private equity and real estate, which returned 5.5% and 3.8%, respectively. U.S. bonds were relatively flat at 0.2%. International bonds, infrastructure and absolute return were slightly negative, returning -1.6%, -0.5% and -1.7%, respectively………………………………………..Full Article: Source

Malaysia’s 1MDB to Sell Energy Assets to China Nuclear Firm

Posted on 24 November 2015 by VRS  |  Email |Print

A Malaysian government-investment fund struggling to dig itself out of a heavy debt load sealed a $2.3 billion deal to sell a collection of energy assets to a Chinese state-owned firm. China General Nuclear Power Corp. is purchasing all of the energy assets of 1Malaysia Development Bhd., or 1MDB, for 9.83 billion Malaysian ringgit ($2.3 billion) in cash.
Those assets, known as Edra, consist of 13 power plants across five countries from Malaysia to Egypt and Bangladesh. China General Nuclear will also assume an unspecified amount of debt as part of the deal………………………………………..Full Article: Source

GIC, Russia-China Fund Join $200M Series C Round In TutorGroup

Posted on 23 November 2015 by VRS  |  Email |Print

Shanghai-based English language online learning platform TutorGroup has completed US$200 million series C round of financing from Singapore’s sovereign wealth fund GIC, the Russia-China Investment Fund, Goldman Sachs and Silverlink Capital L.P., says an announcement.
Existing investors also participated in the round, which values TutorGroup at over US$1 billion. The company says it will use the proceeds on expanding internationally and growing its existing business platform. TutorGroup also plans to expand its education subjects beyond language learning to other areas such as legal counsel, medical advice, and personal wealth management………………………………………..Full Article: Source

Norway Wealth Fund Backs Push to End Banks’ Dominance Over Bonds

Posted on 23 November 2015 by VRS  |  Email |Print

The world’s largest sovereign investor wants to curtail the big banks’ hold over bond trading. The $860 billion Norwegian sovereign-wealth fund is backing the European Union’s campaign to bring transparency to the bond market and make debt trade more like stocks.
The fund says the current setup — where investors call a bank to get a price — is dysfunctional and should be fixed by forcing the banks to publish their prices. The fund will make reform of Europe’s debt markets one of its priorities, according to Oeyvind Schanke, its chief investment officer for asset strategies. It’s easy to see why………………………………………..Full Article: Source

SOFAZ to cut investing in shares on U.S. stock markets

Posted on 23 November 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ, an entity that accumulates and manages the country’s oil and gas revenues, plans to reduce investing in shares on the U.S. stock markets. This was announced by Elnur Babayev, the representative of SOFAZ’s investment department, at a workshop for journalists entitled “State Oil Fund of Azerbaijan: managing of funds and investments.”
He said that SOFAZ will redirect these investments to the shares on the European stock markets. “The reason for SOFAZ’s such a decision was the expected increase in the interest rates in the U.S.,” he said………………………………………..Full Article: Source

NEC approves $150m NNLG fund for sharing by three tiers of government

Posted on 23 November 2015 by VRS  |  Email |Print

The National Economic Council rose from its monthly meeting on Thursday approving the sharing of $150 million among the three tiers of government. The money is part of the $400 million dividends paid by the Nigerian Liquefied Natural Gas. Vice President Yemi Osinbajo (SAN) chaired the meeting at the State House Council Chambers.
Briefing State House correspondents after the meeting, Governor Rauf Aregbesola of Osun State, flanked by his Enugu State counterpart, Ifeanyi Ugwuanyi, said the Council has also directed that the balance of $250 million from the NNLG dividend be invested in the Nigeria Sovereign Investment Authority………………………………………..Full Article: Source

Nigeria makes first 2015 contribution to sovereign wealth fund

Posted on 23 November 2015 by VRS  |  Email |Print

Nigeria will inject $250 million into its sovereign wealth fund, an official said on Thursday, making the first contribution since last year as government savings slightly improved despite a plunge in oil prices.
The money will come from recent proceeds from liquid natural gas exports, Rauf Aregbesola, governor of the southern Osun state, told reporters in Abuja. President Muhammadu Buhari, who took office in May, was elected on a campaign to root out oil theft and corruption, which has deepened an economic crisis triggered by the falling price of Nigeria’s oil exports………………………………………..Full Article: Source

Kazakhstan plans IPOs for 43 large state firms in 2016-17

Posted on 19 November 2015 by VRS  |  Email |Print

Kazakhstan plans to sell stakes of at least 25 percent in 43 large state-owned companies via initial public offerings (IPOs) in 2016-17, the Samruk-Kazyna sovereign wealth fund said. The government faces a plunge in revenues from oil, Kazakhstan’s main export. President Nursultan Nazarbayev told a government meeting on Wednesday he wanted Kazakh businessmen and companies to take part in the privatisations.
The stakes will be sold on the floor of the oil-rich nation’s financial centre being built in the capital Astana, the fund said. The businesses to go public include oil and gas company KazMunaiGas, uranium company Kazatomprom, railway company Kazakhstan Temir Zholy and mining firm Tau-ken Samruk, it said……………………………………..Full Article: Source

Azerbaijan Oil Fund’s budget for 2016 offered with deficit of 19% of costs

Posted on 19 November 2015 by VRS  |  Email |Print

The Supervisory Board of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) held a meeting on 30 October 2015. The meeting chaired by Artur Rasizadeh, Prime Minister of Azerbaijan and Chairman of the Supervisory Board endorsed the SOFAZ’s draft budget for 2016. The SOFAZ press release says that Fund’s 2016 budget revenues were offered at the level of AZN 6.7 bn and expenditures at AZN 8.26 bn.
“The Supervisory Board recommended the Fund’s 2016 draft budget, including the major directions of its investment policy and projects for the approval by the President of Azerbaijan,” it was informed. The Supervisory Board approved a transition of the Oil Fund’s accounting system from International Public Sector Accounting Standards (IPSAS) to International Financial Reporting Standards (IFRS)……………………………………..Full Article: Source

PAC chief says 1MDB, Najib’s RM2.6 billion two separate issues

Posted on 19 November 2015 by VRS  |  Email |Print

The interim auditor-general’s report on 1Malaysia Development Berhad (1MDB) has stated that 1MDB and the RM2.6 billion in Prime Minister Datuk Seri Najib Razak’s personal accounts are “different subjects”, Public Accounts Committee (PAC) chairman Datuk Hasan Arifin said.
“I must state here that 1MDB and RM2.6 billion are completely different subjects. They are not the same,” Hasan said during a press conference today. Asked how PAC came to such a conclusion, Hasan said his statement was based on the interim report released in the middle of this year and never made public to date …………………………………….Full Article: Source

Future Fund “missed out” on $2bn by not divesting

Posted on 18 November 2015 by VRS  |  Email |Print

Australia’s sovereign wealth fund, the Future Fund, has “missed out” on US$1.5 billion (AU$2.2 billion) over the past three years by not divesting from carbon-exposed companies. According to the Clean Capitalist Decarbonizer tool, launched by Corporate Knights, together with 350.org using carbon data from the South Pole Group, the fund could have grown its revenue by US$1.5 billion by divesting from carbon-intensive companies and investing in companies that provide “environmental solutions”.
The finding was reached after Corporate Knights analysed the most-recently disclosed holdings of the Future Fund (as well as 13 other prominent funds, including the Australian National University), and estimated the potential financial impact of shifting their investments from “the world’s largest fossil fuel companies” (and utilities that rely on coal for more than 30 per cent of their electricity generation), to companies that derive at least 20 per cent of their revenues from environmental markets of new energy………………………………………..Full Article: Source

Ex-Temasek portfolio firm Stats ChipPac to refinance $400m debt facility via bonds

Posted on 18 November 2015 by VRS  |  Email |Print

Stats ChipPac, Southeast Asia’s largest semiconductor assembler, is seeking to refinance $400 million of debt in the first test of its credit strength without the support of Temasek Holdings, following the exit of Singapore’s state fund from the firm.
Bloomberg reported that the chip packaging and testing company intends to raise funds from the sale of dollar-denominated bonds due in five years, as part of an effort to partially repay a $890-million bridge loan, CFO Woo Kwek Kiong said in an e-mail interview with Bloomberg. Currently, the firm is seeking a $500-million syndicated loan to pare the bridge loan from DBS Group Holdings………………………………………..Full Article: Source

After Temasek Split, Singapore Chipmaker Faces Funding Test

Posted on 17 November 2015 by VRS  |  Email |Print

Stats ChipPac Ltd., Southeast Asia’s biggest semiconductor assembler, is seeking to refinance $400 million of debt in the first test of its credit strength without the implicit AAA backing of the government of Singapore.
The planned note offering comes after Temasek Holdings Pte, the Singapore sovereign wealth fund, cashed out from Stats ChipPac as Chinese firm Jiangsu Changjiang Electronics Technology Co. completed its takeover bid in October. Temasek’s departure triggered two rating downgrades by Standard & Poor’s just as the financing costs of lower-rated borrowers in Asia are rising amid renewed global market jitters……………………………………….Full Article: Source

S’pore chip firm faces funding test after split from Temasek

Posted on 17 November 2015 by VRS  |  Email |Print

Stats ChipPac, Southeast Asia’s biggest semi-conductor assembler, is seeking to refinance US$400 million (S$570 million) of debt in the first test of its credit strength without the implicit AAA backing of the Singapore Government.
It plans to sell US dollar-denominated debt that is due in five years to help repay part of an US$890 million bridge loan, Stats ChipPac CEO Woo Kwek Kiong said. The company is currently seeking a US$500 million syndicated loan to pare the bridge loan from DBS Group Holdings……………………………………….Full Article: Source

1MDB To Have RM10b Assets After Revamp

Posted on 17 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) president and CEO Arul Kanda Kandasamy said the company will have at least RM10 billion worth of assets after undergoing a rationalisation plan to clear its debts. Speaking in a public forum on Saturday, Arul Kanda also said the government is supportive of the plan, including selling its assets.
Among the assets that the company owns include the land in Tun Razak Exchange as well as a 40% stake in Bandar Malaysia Sdn Bhd worth between RM4 billion and RM5 billion, land in Ayer Itam, Penang (RM1 billion) and Pulau Indah (RM300 million). “1MDB took loans to purchase assets. The payment of debts is made through generating our assets,” said Arul Kanda in a packed public briefing at Putra World Trade Centre (PWTC) on Saturday……………………………………….Full Article: Source

Shell share price: Qatar fund sell-down stirs BG merger fears

Posted on 17 November 2015 by VRS  |  Email |Print

The Qatar Investment Authority, the Gulf state’s sovereign wealth fund, has divested $1 billion worth of shares in Royal Dutch Shell Plc and BG Group, casting doubts on whether the proposed mega-merger has the support of major shareholders within the two companies.
The QIA, which holds about 4.88 percent of Shell and 1.76 percent in BG Group, has sold 43 million shares in BG and a further 24 million in Shell over a period of less than three weeks near the end of October. “The market is concerned that these sales have been discriminatory towards BG, and therefore suggesting some underlying reason which might be worrying for the fate of the transaction,” analysts at Olivetree Financial said as quoted by The Telegraph……………………………………….Full Article: Source

Ireland to pull billions of euro from global asset managers

Posted on 17 November 2015 by VRS  |  Email |Print

Ireland’s sovereign wealth fund will pull several billion euro from global asset managers over the next five years as the Government tries to use the fund’s assets to bolster the domestic economy.
Some €3 billion of the sovereign fund’s €7.9 billion of investible asset is in global equities, bonds, commodities, infrastructure and absolute return funds run by international asset managers. It will divest from these holdings by 2020 as part of its new mandate to invest in projects and companies with the potential to create jobs in Ireland and boost the economy……………………………………….Full Article: Source

QIA sold 43m shares in BG Group and a further 24m shares in Shell

Posted on 16 November 2015 by VRS  |  Email |Print

The Qatar Investment Authority has offloaded shares in Shell and BG worth nearly £1bn in recent weeks, raising fresh questions over whether the oil­giants’ proposed mega-merger has the support of major shareholders.
The sovereign wealth fund, led by Sheikh Abdullah bin Mohammed AlThani, a member of the Qatari royal family, has sold around 43m shares in BG Group, worth roughly £550m, and a further 24m shares in Shell, with a value of approximately £421m. The sell-off, over a period of less than three weeks between the end of October and the first week of November, will be a blow to Shell’s chief executive, Ben van Beurden………………………………………..Full Article: Source

1MDB’s Latest Act: Two Obama Fundraisers, One Fugee and $69 Million

Posted on 16 November 2015 by VRS  |  Email |Print

The sprawling web of investments by a Malaysian government fund at the center of a corruption probe now includes two former fundraisers for President Barack Obama and a hip-hop superstar. The fund, 1Malaysia Development Bhd., paid private-equity group DuSable Capital Management LLC $69 million to buy its stake in a joint venture to develop solar power plants in the Southeast Asian country, the two sides said Wednesday.
The parties had signed an agreement in April 2014 giving DuSable a 49% stake, but 1MDB agreed to buy out the firm six months later, before construction had begun on any project, they said………………………………………..Full Article: Source

Bank Negara validating 1MDB’s explanation on US$1.83 billion funds

Posted on 16 November 2015 by VRS  |  Email |Print

Bank Negara Malaysia is still “validating” 1Malaysia Development Bhd’s (1MDB) explanation on its inability to repatriate US$1.83 billion in funds ordered by the central bank. Stressing that “the matter is not straight forward” and related to 1MDB’s rationalisation plan, Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz did not commit a timeline for the completion of its evaluation process.
“It’s premature to say anything more, we’ll make assessments once we’ve received all information that we’ve requested,” she said during a press conference on Friday announcing the country’s gross domestic product growth figures for the third quarter of the year………………………………………..Full Article: Source

Trott Says Goldman Sought Sovereign Wealth Financing in 2008

Posted on 12 November 2015 by VRS  |  Email |Print

Byron Trott, the former Goldman Sachs Group Inc. banker who arranged a deal in 2008 for billionaire Warren Buffett to inject capital in the firm, said the bank also sought financing from a sovereign wealth fund at the depths of the credit crisis.
“There was a second leg of that deal that never got done,” Trott said Wednesday at an event in New York celebrating Buffett’s 50 years running Berkshire Hathaway Inc. “We were trying to get, actually, a sovereign wealth fund to write Goldman Sachs a $10 billion line of credit behind it.”……………………………………….Full Article: Source

1MDB explains solar ties with US firm

Posted on 12 November 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB), in a joint statement today with DuSable Capital Management LLC, said while the two entities had discussed working together to jointly develop a proposed 50MW solar power plant in Kedah, no definitive agreement was ever reached about the project or any other solar power projects.
According to the statement titled Factual Clarification on 50MW solar power plant in Kedah, Malaysia, 1MDB engaged US private equity firm DuSable in 2013 to assist with project development of utility-scale grid connected solar power generation capability, “for which DuSable was remunerated US$506,000 for costs and expenses”………………………………………..Full Article: Source

A-G should charge 1MDB with cheating, says Amanah

Posted on 12 November 2015 by VRS  |  Email |Print

There is grounds for a charge against 1Malaysia Development Bhd (1MDB) for cheating the central bank, Parti Amanah Negara’s legal bureau chief Mohamed Hanipa Maidin said today, urging the Attorney-General (A-G) to reconsider the case against the state investment firm.
The Sepang MP said that the A-G’s clearance of 1MDB from any offence was only in the context of the Exchange Control Act 1953 (ECA) in relation to non-disclosure or incomplete disclosure of information to Bank Negara Malaysia (BNM) for permissions to make overseas transfers of money. But this did not mean that 1MDB was innocent of the crime of cheating which made the state firm liable to be charged under the Penal Code, Hanipa said………………………………………Full Article: Source

Russia scores $500m more from Kuwait fund

Posted on 11 November 2015 by VRS  |  Email |Print

Kuwait’s sovereign wealth fund, the Kuwait Investment Authority (KIA), has allocated an additional $500 million to investment projects in Russia in partnership with the Russian Direct Investment Fund (RDIF), the RDIF said on Tuesday.
The RDIF said the deal was signed on Tuesday in Sochi, in the presence of Russian President Vladimir Putin and the Emir of Kuwait, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah. This follows $500 million which KIA allocated for investment with RDIF in 2012………………………………………..Full Article: Source

Norway’s $860 billion wealth fund selling foreign bonds to buy property - CEO

Posted on 09 November 2015 by VRS  |  Email |Print

Norway’s $860-billion (566.47 billion pounds) sovereign wealth fund is funding all its real estate deals by selling government bonds from its portfolio of foreign fixed income assets, its chief executive said on Friday.
“Every real estate investment deal we do is funded by sales of government bonds,” Yngve Slyngstad told a seminar on real estate investments held at the Norwegian central bank………………………………………..Full Article: Source

CICC shares jump 6% in debut

Posted on 09 November 2015 by VRS  |  Email |Print

China investment bank CICC has just debuted in Hong Kong, climbing 6 per cent at the open. The state-backed bank raised $811m in an IPO late last month — a smaller flotation than initially planned as it seeks to convince investors of the potential to expand its sales and trading and wealth management operations.
CICC was formed as a joint venture between Morgan Stanley and China Construction Bank in the 1990s. It now counts China Investment Corporation, the country’s sovereign wealth fund, as its biggest shareholder. Shares sold by CIC accounted for just under 10 per cent of its initial public offering, with 90.1 per cent fresh equity. Other existing investors included private equity groups KKR and TPG who led the group that bought Morgan Stanley’s stake in 2010. After the sale, CIC now holds 30.1 per cent with GIC, Singapore’s sovereign wealth fund, holding 12.3 per cent. TPG and KKR hold 7.7 per cent and 7.5 per cent respectively………………………………………..Full Article: Source

Qatar’s austerity drive will be felt beyond Doha

Posted on 06 November 2015 by VRS  |  Email |Print

Qatar has had the feast – now comes the self-imposed famine. The country’s absolute ruler Sheikh Tamim bin Hamad al-Thani on Nov. 3 told his subjects that they should prepare for harder times. After the decade-long splurge that saw Qatar buy significant stakes in companies such as Volkswagen AG, Barclays and Glencore, the belt-tightening won’t just pinch in Doha.
Oil wealth has made Qataris among the world’s richest people, with a GDP per capita close to $100,000, according to the World Bank. But, Sheikh Tamim said, it has encouraged Qataris to be wasteful. Arguably the biggest example is its sovereign wealth fund, which is thought to hold $334 billion in assets. Next year might see Qatar fall to a budget deficit, its first in 15 years………………………………………..Full Article: Source

Abu Dhabi Investment buys 2.53 Lk shares of eClerx Services

Posted on 06 November 2015 by VRS  |  Email |Print

On November 05, 2015 Anjan Malik sold 1,68,000 shares of eClerx Services at Rs 1,760.05 and Mundhra Priyadarshan sold 2,50,000 shares at Rs 1,760.38 on the BSE. However, Abu Dhabi Investment Authority bought 2,53,533 shares at Rs 1,760.05.
On Thursday, eClerx Services ended at Rs 1,771.85, down Rs 93.55, or 5.02 percent on the BSE. The share touched its 52-week high Rs 1,949.15 and 52-week low Rs 1,218 on 23 October, 2015 and 10 December, 2014, respectively………………………………………..Full Article: Source

Exchange Fund turned around last month from huge loss: HKMA head

Posted on 06 November 2015 by VRS  |  Email |Print

The Hong Kong Exchange Fund turned around in October from the HK$36.8 billion in losses it made during the first three quarters of the year, the Hong Kong Economic Journal reported Friday. The report cited Norman Chan Tak-lam, chief executive of the Hong Kong Monetary Authority, who wrote in his blog that the fund basically turned around at the end of the month.
He said the manager of the sovereign fund, which fuels the HKMA’s efforts to maintain the peg between the Hong Kong dollar and the US dollar, has adopted defensive measures to minimize the fund’s losses.The fund has reduced its investment in long-term bonds and increased its holding of cash over the past two years to prepare for the potential impact on bond investments of an interest rate hike, Chan wrote………………………………………..Full Article: Source

SOFAZ earns $118 bln from ACG, Shah Deniz projects

Posted on 05 November 2015 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ has earned $116.01 billion from 2001 to November 1, 2015 through the development of the giant Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea. SOFAZ told Trend on November 1 that the Fund gained $5.86 billion in January-October, 2015 within the framework of ACG project.
The ACG fields have been active since 1997. Its production first started at the Chirag part of the block. It was followed by Azeri Project; Central Azeri in February 2005, West Azeri in December 2005, and East Azeri in October 2006. The Deepwater Gunashli section launched production in April 2008………………………………………..Full Article: Source

Azerbaijan’s State Oil Fund reveals revenues from largest gas project

Posted on 05 November 2015 by VRS  |  Email |Print

The revenues of the State Oil Fund of Azerbaijan (SOFAZ) from the project for developing the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea totaled $2.4 billion from 2007 to Nov.1, 2015, SOFAZ told Trend Nov.3. SOFAZ said its revenues from the Shah Deniz project stood at $279 million in Jan.-Oct. 2015.
The contract for developing 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 are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent)………………………………………..Full Article: Source

Nigeria: Benefits of govt’s planned $25b infrastructure fund, by experts

Posted on 05 November 2015 by VRS  |  Email |Print

Experts have affirmed that the planned $25 billion (N5 trillion) infrastructure fund would bolster the nation’s enabling environment and pave way for stronger economic growth. In separate recent chats with the media, the experts said that the projected improved growth from the fund would be achieved, even in the face of current dwindling commodity prices and recent economic challenges.
The Federal Government had on October 29 announced plan to establish a $25 billion infrastructure fund to invest in the transport and energy sectors so as to bridge the nation’s infrastructure deficit, which has grossly increased the cost of doing business. Spokesperson for Vice President Yemi Osinbajo, Laolu Akande stated that the fund would be set up with contributions from local and international sources including Nigeria’s sovereign wealth fund………………………………………..Full Article: Source

Azerbaijan’s Oil Fund gets about $6.1 bn from ACG and Shah Deniz projects for Jan-Oct

Posted on 04 November 2015 by VRS  |  Email |Print

Revenues to the State Oil Fund of Azerbaijan (SOFAZ) from the sale of profit oil of oilfield block Azeri-Chirag-Gunashli (ACG) and gas from Shah Deniz gas condensate field totaled $6.135 bn for Jan-Oct 2015.
According to the Fund, of this amount, $5.856 bn accounted for income from the sale of Azerbaijan’s profit oil from ACG and $279 million from the sale of profit gas extracted from Shah Deniz field. “In general from 2001 to 1 November 2015 SOFAZ received $116 bn from sale of Azerbaijan’s profit oil from Azeri-Chirag-Gunashli and since 2007 - $2.4 bn from sale of gas from Shah Deniz,” the Fund said………………………………………..Full Article: Source

Hong Kong Exchange Fund Had Biggest Quarterly Loss After Rout

Posted on 03 November 2015 by VRS  |  Email |Print

Hong Kong Exchange Fund, managed by the city’s de facto central bank, reported its largest quarterly loss in history by value, as stock prices plummeted amid a market rout. The fund, managed in its current form by the Hong Kong Monetary Authority from 1998, had an investment loss of HK$63.8 billion ($8.2 billion) in the three months ended September, according to a presentation by HKMA Deputy Chief Executive Eddie Yue to legislators today.
The loss was not the biggest by percentage terms, according to a spokeswoman, who didn’t give further details. Government institutions globally have suffered losses as stocks gyrated and currencies fluctuated on economic concerns, including a China slowdown and expectations of rising interest rates in the U.S. Norges Bank in October posted its biggest loss in four years, as Chinese stocks and Volkswagen AG dragged down returns of the world’s largest sovereign wealth fund………………………………………..Full Article: Source

Temasek Drags Olam From Muddy Waters to Winning $1 Billion Loan

Posted on 03 November 2015 by VRS  |  Email |Print

Olam International Ltd., the Singapore commodities trader that fended off an attack from U.S.-based short seller Muddy Waters LLC in 2012, is discovering it’s good to have friends with deep pockets.
Nineteen banks from around the globe last week lent $1 billion to the company, which has been controlled by Singapore state investment fund Temasek Holdings Pte since 2014. Olam’s 2020 dollar bonds returned 6.9 percent in the past year, as those of rival commodities traders slumped. Noble Group Ltd.’s notes of the same maturity lost 24 percent in the same period and Trafigura Beheer BV’s euro-denominated bonds lost 10.6 percent since their April sale………………………………………..Full Article: Source

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