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Sovereign Wealth Funds Briefing - Category | Asset Allocation more

CICC Plans $1 Billion Hong Kong IPO

Posted on 14 July 2015 by VRS  |  Email |Print

China International Capital Corp. is planning to raise US$1 billion in an initial public offering in Hong Kong as early as October, people familiar with the situation said, offering shareholders KKR & Co. and TPG Capital the chance to exit their investments despite turmoil in Chinese stocks.
Central Huijin Investment Ltd., the domestic investment arm of China’s sovereign-wealth fund, is the largest shareholder in CICC with a 43.35% stake. Singapore’s GIC holds 16.35%, while TPG Capital owns 10.3% and KKR holds 10%, according to its 2014 annual report………………………………………..Full Article: Source

Saudi Arabia issues first sovereign bonds since 2007, more to come

Posted on 13 July 2015 by VRS  |  Email |Print

Saudi Arabia has issued its first sovereign bonds since 2007 to cover a budget deficit created by low oil prices, launching a series of debt sales that could reshape its financial markets. So far Riyadh has mainly been running down its financial reserves to cover the deficit; Mubarak said the government had withdrawn 244 billion riyals from reserves in 2015.
This has cut the foreign assets held by the central bank, which is the kingdom’s sovereign wealth fund. Its net foreign assets — mostly U.S. dollar bank deposits and bonds — fell to $672 billion in May. The start of Saudi bond sales means pressure for the reserves to fall may now decrease………………………………………..Full Article: Source

Chinese sovereign wealth fund unit vows to buy more ETFs

Posted on 09 July 2015 by VRS  |  Email |Print

Central Huijin Investment Ltd, a unit of China’s $747 billion sovereign wealth fund, promised on Wednesday it would continue to buy more exchange-traded funds in the battered Chinese market and that it would not sell any Chinese shares that it owns.
The remarks by Central Huijin, a unit of China Investment Corp, echo comments from other Chinese government bodies, such as the Finance Ministry, that they would support the Chinese stock market, which has slumped a third in the past month………………………………………..Full Article: Source

Temasek Zones in on Biotech, Consumer Stocks to Broaden Assets

Posted on 09 July 2015 by VRS  |  Email |Print

Temasek Holdings Pte is shaking up its asset mix with a push into biotechnology and consumer companies that stand to benefit from aging populations and increasing disposable incomes.
Singapore’s state-investment firm singled out life sciences and agriculture as well as consumer goods among the top three industries it allocated money to in the fiscal year ended March 31, helping its portfolio value reach a record. It added assets in U.S. pharmaceutical firm Gilead Sciences Inc, Indian drugmaker Intas Pharmaceuticals Ltd, and health and beauty retailer A.S. Watson during that period………………………………………..Full Article: Source

China’s biggest ETF sees record trading after Beijing unveils rescue plan

Posted on 07 July 2015 by VRS  |  Email |Print

China’s biggest exchange-traded fund (ETF) jumped more than 6 percent on Monday in record turnover, in the clearest sign yet that money from Chinese brokerages, mutual funds and sovereign wealth funds could be flowing into blue chips as part of a rescue package unveiled over the weekend.
The China 50 ETF, which buys into shares of the 50 biggest companies listed in Shanghai, registered turnover of 24.9 billion yuan ($4.01 billion), more than double the previous session. The huge money inflows into the China 50 ETF, which has heavy exposure to financial and energy heavyweights, anchored investor sentiment in Monday’s volatile trading session, and fuelled speculation that Beijing’s “stability fund” was at work………………………………………..Full Article: Source

KIC’s chairman sets course for endowment-like asset allocation

Posted on 03 July 2015 by VRS  |  Email |Print

Korea Investment Corp., the Seoul-based sovereign wealth fund, should follow the path blazed by U.S. university endowments in allocating 50% or more of its portfolio to alternative investments, Chairman Hongchul “Hank” Ahn said Wednesday.
At a celebration marking the 10th anniversary of KIC’s founding, Mr. Ahn — in a speech obtained by Pensions & Investments — said KIC’s more immediate goal is to boost its alternatives allocation to 15% of assets by the end of 2015 from 8% the previous year. Ahn said the KIC has $86 billion in assets, a modest advance from $84.7 billion at the end of 2014………………………………………..Full Article: Source

Kuwait may issue bonds to finance deficit -finance minister

Posted on 03 July 2015 by VRS  |  Email |Print

Kuwait is considering issuing bonds among various options to finance a budget deficit created by low oil prices, Finance Minister Anas al-Saleh said on Thursday.
In addition to issuing bonds, Kuwait could run down assets in its sovereign wealth fund to cover its deficit, as Saudi Arabia has been doing. The Kuwaiti fund holds $548 billion of assets, estimates the Sovereign Wealth Fund Institute, which tracks the industry……………………………………….Full Article: Source

1MDB: Price paid for energy assets based on ‘long-term view’

Posted on 24 June 2015 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) debunked allegations made recently in the Wall Street Journal (WSJ) on its 2012 purchase of a power asset from Genting Group, saying the allegedly inflated price paid had not been driven by political considerations.
Instead, 1MDB insisted that like all its other asset acquisitions, the deal with Genting Group was based on a long-term view as well as advice received from independent valuers and the market conditions at the time………………………………………..Full Article: Source

Norway Fund Likes Short Bonds as Volatility Grows

Posted on 19 June 2015 by VRS  |  Email |Print

Norway’s $890 billion sovereign wealth fund, the world’s biggest, is sticking to short bond maturities as markets are increasingly gripped by volatility. The decision is designed to guard against sudden price swings that are migrating from currency markets back to bond markets, Yngve Slyngstad, chief executive officer of Norges Bank Investment Management, which runs the fund, said in an interview in Oslo on Thursday.
“It seems that the volatility that had moved to the currency market has basically come back to the bond market again,” he said. “We have a shorter duration in our portfolio than what’s in the broader markets, so we are prepared for volatility in the bond market.”……………………………………….Full Article: Source

Qatar’s sovereign fund to set asset allocation targets

Posted on 16 June 2015 by VRS  |  Email |Print

Qatar Investment Authority, one of the world’s most aggressive sovereign wealth funds, will set asset allocation targets for the first time and restructure internal decision-making, sources say, in response to a drop in oil prices that has crimped available funds as competition for assets grows.
In a cryptic reference on QIA’s website, a tab saying “QIA Review — Coming Soon” leads to a page which does not yet exist. The sources, who all either work in Qatar or for foreign institutions which work with the QIA, said the review process was currently ongoing. A spokesman for the QIA, which is estimated by industry tracker the Sovereign Wealth Center to have $304 billion of assets, declined to comment………………………………………..Full Article: Source

Sovereign investors want larger exposure to Chinese yuan: Invesco

Posted on 09 June 2015 by VRS  |  Email |Print

Central banks have a growing appetite for risk, wanting more exposure to the Chinese yuan - a view that is also adopted by sovereign wealth funds around the world, a new survey has found. While less than 1 per cent of central bank portfolios were invested in renminbi, 43 per cent of them were interested in gaining more exposure to the currency, an annual soverign asset management study said.
Thirty-five per cent of global sovereign wealth funds reported that they were seeking renminbi exposure. The study by Invesco, released Monday, interviewed 59 sovereign investors across the globe, with assets totaling US$7.09 trillion (S$9.6 trillion). Individual investors were not named but the report included a sample from Singapore………………………………………..Full Article: Source

Sovereign wealth funds likely to lower home-market bond holdings

Posted on 09 June 2015 by VRS  |  Email |Print

Bond markets across the globe look set to lose further favor with sovereign wealth fund investors as a net 47% say they expect to decrease their home-market bond exposures. The third annual report by Invesco (IVZ) about the SWF market, covering $7.1 trillion in assets from 59 investors, found that trend against home-market bonds had increased from a net 38% planning such a shift in the 2014 report.
A propensity for cash was marked, however, with only a net 17% of respondents set to shift from cash, vs. a net 25% in 2014. At the other end of the investor views was infrastructure, with a net 50% expecting to increase allocation to home-market infrastructure, vs. a net 33% in 2014. Global infrastructure is set to increase as well, with a net 63% expecting to shift allocations into the asset class, compared with a net 53% in 2014………………………………………..Full Article: Source

Yuan Market Access Lags Sovereign Investor Demand, Invesco Says

Posted on 08 June 2015 by VRS  |  Email |Print

Sovereign investors’ access to China’s capital market is lagging behind demand, according to a survey. Some 43 percent of central banks and 35 percent of state investors surveyed in the Invesco Global Sovereign Asset Management Study 2015 said they are looking to invest in yuan assets. So far, only 30 percent of the monetary authorities and 10 percent of the sovereign funds have quotas to invest in the onshore market, according to the survey results released Monday.
Invesco interviewed 59 investors that oversee $7.09 trillion of assets, including central banks, sovereign wealth funds and pension funds. Of the entities surveyed, 15 had more than $100 billion of assets under management, according to the study, which didn’t name the investors………………………………………..Full Article: Source

M’sia’s ethical sukuk adds to market width but depth elusive

Posted on 05 June 2015 by VRS  |  Email |Print

Malaysia’s efforts to create a market for ethical Islamic bonds (sukuk) are the latest in a series of government-led initiatives to develop Islamic finance, but further expansion will require a greater buy-in from a sometimes reluctant private sector.
Last month, sovereign wealth fund Khazanah Nasional Bhd (Khazanah) launched the country’s first sustainable and responsible investment (SRI) sukuk, nearly two years after the format was first announced by the government. “Until now, nobody has done it. If we don’t take this challenge, then I don’t think anyone would be doing it,” Khazanah’s chief financial officer Mohd Izani Ghani said in a phone interview. “We have done many firsts before and it is always challenging,” said Izani. ……………………………………….Full Article: Source

Abu Dhabi Investment Authority bolsters internally managed capabilities in 2014

Posted on 03 June 2015 by VRS  |  Email |Print

Abu Dhabi Investment Authority cut the percentage of assets managed by external money managers to 65% from 75% a year earlier, said its 2014 annual report. The move to reduce externally managed assets by the sovereign wealth fund reflected its “efforts over recent years to strengthen the organization’s in-house investment and analytical expertise,” said Hamed bin Zayed Al Nahyan, managing director, in the review. Further details weren’t available.
ADIA does not disclose its assets, but it is estimated by the Sovereign Wealth Fund Institute to have $773 billion. The sovereign wealth fund said about 55% of its assets are invested in index-replicating strategies, steady from 2013………………………………………..Full Article: Source

XPO to raise $3.26 billion with an eye to more deals - sources

Posted on 01 June 2015 by VRS  |  Email |Print

XPO Logistics Inc will raise $3.26 billion through new equity and debt, partly to fund acquisitions, according to people familiar with the matter, just one month after a $3.53 billion deal to buy France’s Norbert Dentressangle SA.
A consortium of 15 investors that include Singapore’s sovereign wealth fund and Canadian public pension funds Ontario Teachers’ Pension Plan and Public Sector Pension Investment Board have agreed to provide $1.26 billion to XPO by acquiring 28 million of its shares, equivalent to 21 percent of its common stock, at $45 per share, the people said on Sunday………………………………….Full Article: Source

Temasek-Backed InnoVen Seeks Asia Expansion to Fill Lending Gap

Posted on 28 May 2015 by VRS  |  Email |Print

InnoVen Capital India, controlled by Temasek Holdings Pte, is seeking to expand its venture debt business across Asia as banks in the region shy away from lending to early-stage companies.
The seven-year-old Mumbai firm plans to use its underwriting model honed in India to expand into Southeast Asia this year and later to China, Chief Executive Officer Ajay Hattangdi said in a May 26 interview. InnoVen has provided debt to over 50 venture capital-backed companies including Snapdeal.com, the Indian web marketplace backed by billionaire Masayoshi Son’s SoftBank Corp……………………………………Full Article: Source

Khazanah debuts ethical Islamic bonds with annual sales planned

Posted on 19 May 2015 by VRS  |  Email |Print

Malaysia’s state-owned sovereign wealth fund is about to test appetite for the nation’s first socially responsible Islamic bonds and plans to issue such debt annually. Khazanah Nasional Bhd will start marketing as much as RM150 million (US$42 million) of the seven-year sukuk today, Chief Financial Officer Mohd Izani Ghani said in a May 14 interview in Kuala Lumpur.
The offering will fund 20 schools in Malaysia, he said, adding that future sale options may include healthcare and affordable housing. The world’s biggest Shariah-compliant debt market is setting a precedent for Socially Responsible Investment sukuk after pioneering Islamic finance 30 years ago………………………………………..Full Article: Source

Khazanah to test market with Malaysia’s first ethical sukuk

Posted on 19 May 2015 by VRS  |  Email |Print

Malaysia’s sovereign fund Khazanah Nasional on Monday launched the country’s first sustainable and responsible sukuk (SRI) with a RM1 billion bond programme. Khazanah will price the first issuance next week: a seven-year RM100 million sukuk that will fund the rollout of 20 new government schools this year.
It hopes to raise at least RM150 million annually by issuing sukuk from the 25-year programme, which has a preliminary credit rating of AAA by Kuala-Lumpur based RAM ratings………………………………………..Full Article: Source

Abu Dhabi-Backed Falcon Sees ‘Years of Gains’ for Europe Stocks

Posted on 07 May 2015 by VRS  |  Email |Print

Falcon Private Bank, the wealth manager owned by an Abu Dhabi sovereign wealth fund, says European stocks have “years of gains” to come as the region rolls out its stimulus plan, while the U.S. bull run is almost over.
Markets in the euro zone may take a “short pause” before the influx of liquidity from the European Central Bank’s quantitative easing program prompts increases, David Pinkerton, the Zurich-based chief investment officer for Falcon, said Wednesday in an interview at Bloomberg’s Dubai offices………………………………………..Full Article: Source

Biggest Wealth Fund Joins Bond Bears in Bet Europe Rally Fading

Posted on 30 April 2015 by VRS  |  Email |Print

Norway’s $900 billion sovereign wealth fund is joining Janus Capital’s Bill Gross and Jeffrey Gundlach of Doubleline Capital in betting Europe’s historic bond rally is coming to an end.
Yngve Slyngstad, the manager of the Oslo-based fund which on Wednesday reported a record investment return, said he is weighting a 2.5 trillion-krone ($328 billion) bond portfolio to shorter maturities, meaning it will outperform when rates rise. “As long as interest rates are stable, or falling, we will be lagging the broader markets as we have a shorter maturity in the portfolio,” Slyngstad said in an interview………………………………………..Full Article: Source

Malaysia to have world’s largest syariah pension fund

Posted on 24 April 2015 by VRS  |  Email |Print

Malaysia’s state pension fund will offer a syariah-compliant investment option for its members by 2017, Prime Minister Datuk Seri Najib Razak said. This would create the largest syariah fund of its kind in the world, Najib said at the launch of an investment conference here. He did not specify how big he thought the syariah-compliant standalone fund could be.
Malaysia’s sovereign wealth fund Khazanah Nasional will add to the government efforts by issuing a RM1 billion socially responsible Islamic bond, which has now received regulatory approval, Najib added. The moves could help boost Malaysia’s economy, which has faced weakness due to the slump in oil prices and rising debt………………………………….Full Article: Source

Why NM State Investment Council allocated $1.1 billion for ’smart beta’

Posted on 07 April 2015 by VRS  |  Email |Print

The New Mexico State Investment Council, which manages the state’s $20 billion sovereign wealth fund — otherwise known as a permanent endowment — has allocated $1.1 billion for a new investment strategy known as ” smart beta.”
NMSIC oversees several permanent funds that distribute financial allocations to sectors that include public education, water infrastructure and more. The Land Grant Permanent Fund, for example, annually funnels more than a half-billion dollars into public schools, universities and other institutions; during the 2015 fiscal year, approximately $595 million in benefits will be distributed from the Land Grant Fund………………………………………..Full Article: Source

Social-security fund allowed to invest in local government bonds

Posted on 02 April 2015 by VRS  |  Email |Print

China’s State Council, or cabinet, announced measures on Wednesday to boost returns at the nation’s social-security fund, expanding its investment scope to include local-government bonds and other financial instruments.
The new rules allow the fund to invest up to 20% of its portfolio in local-government debt and corporate bonds, according to a statement on the main government website. Previously, the fund was allowed to invest up to 10% of its portfolio in corporate debt, but not in local-government debt………………………………………..Full Article: Source

No Risk Too Big as Bond Traders Plot Escape From Negative Yields

Posted on 23 March 2015 by VRS  |  Email |Print

In the negative-yield vortex that is the European bond market, investors are discovering just what lengths they’re willing to go to generate returns. Norway’s $870 billion sovereign wealth fund said this month that it added Nigeria and lifted its share of lower-rated company debt to the highest since at least 2006. Allianz SE, Europe’s biggest insurer, is shifting from German bunds to bulk up on mortgages. JPMorgan Asset Management is buying speculative-grade corporate debt to boost returns.
With the European Central Bank’s fight against deflation pushing yields on almost a third of the euro area’s $6.26 trillion of government bonds below zero, even the most risk-averse investors are taking chances on assets and regions that few would have considered just months ago. That’s exposing more clients to the inevitable trade-off that comes with the lure of higher returns: the likelihood of deeper losses………………………………………..Full Article: Source

1MDB support letter as good as guarantee, says DAP

Posted on 18 March 2015 by VRS  |  Email |Print

Putrajaya’s letter of support to debt-laden 1Malaysia Development Bhd is tantamount to a guarantee on the loans taken by the fund, the DAP said today.Party publicity chief Tony Pua said although all ministers had insisted that the loans guaranteed by the federal government amounted to only RM5.8 billion, the actual figure was more than RM16 billion of the sovereign wealth fund’s RM42 billion debt.
Speaking at the Parliament lobby today, Pua said 1MDB’s RM16 billion debt should be added on to the government’s contingent liability. He said that previously Deputy Finance Minister Datuk Ahmad Maslan had repeatedly denied that the government has issued a letter of support for 1MDB via its subsidiary 1MDB Global Investment Limited to raise a US$3 billion bond on November 6 last year………………………………………..Full Article: Source

Norway’s oil fund to sell European bonds, buy real estate in 2015

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund will continue to sell down its European government debt portfolio and may spend all of its new cash inflow in 2015 on real estate investments, Chief Executive Yngve Slyngstad said on Friday.
“We are not enthusiastic about investing in European government bonds,” Slyngstad told Reuters on the sidelines of a press conference. “This year it may we be that we are using more than the inflow in real estate investment, so as such, yes, we’ll be selling other assets… European government bonds.”……………………………………….Full Article: Source

Biggest Wealth Fund Loads Up on Spanish Bonds as Part of QE Bet

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s $860 billion sovereign wealth fund, the world’s biggest, has bought up Spanish government bonds in anticipation that European Central Bank debt purchases will drive up their value.
Holdings of Spanish government bonds rose by 67 percent to 46.7 billion kroner ($5.7 billion) in 2014, Norges Bank Investment Management said in its annual report on Friday. NBIM lowered its exposure to Spanish covered bonds after their valuation benefited from ECB purchases, Chief Executive Officer Yngve Slyngstad said………………………………………..Full Article: Source

Norway’s Sovereign Wealth Fund reducing investments in Turkish bond market

Posted on 16 March 2015 by VRS  |  Email |Print

Norway’s Sovereign Wealth Fund, the largest in the world at USD 890 billion, has announced that it will be reducing its investments in the Turkish bond market, resulting in a TRY 77 million decline in bonds. Despite Turkey having a coefficient of 1 according to the Barclays Capital Aggregate Bond Index, the Sovereign Wealth Fund noted that it had reduced Turkey’s position to 0.5. This means its position on Turkish Lira bonds will be reduced by exactly half.
AK Investment’s Gökhan Şen told BusinessH/T that he calculates this decision will result in a TRY 77 million decline in Turkish Lira bonds. Foreigners have reduced their positions on Turkish bonds by USD 1.2 billion since the start of the new year………………………………………..Full Article: Source

1Malaysia Devt Bhd undertaking IPO to overcome cash flow problems

Posted on 13 March 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) is in the process of undertaking the initial public offering (IPO) to inject capital flow into the sovereign fund to overcome its cash flow problems. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, said this short-term measure would be launched in June or July.
“The IPO is important. It is needed to restructure borrowing,” he said. Ahmad Husni said this in reply to a supplementary question by Mohd Fasiah Mohd Fakeh (BN-Sabak Bernam) on the financial position of 1MDB at Dewan Rakyat here yesterday………………………………………..Full Article: Source

Malaysia’s 1MDB to be dismantled under debt plan: sources

Posted on 06 March 2015 by VRS  |  Email |Print

Malaysia’s indebted and controversy-ridden state investor 1MDB will be left as a skeletal structure and possibly dissolved under a debt repayment plan in which most of its assets will be sold, sources with direct knowledge of the matter said.
The power and property fund, a pet project of Prime Minister Najib Razak with assets worth US$14 billion, was hit by losses last year and nearly defaulted on a loan payment. The near-miss drove down the ringgit currency and Malaysian government bonds and prompted calls from opposition leaders to make the fund’s accounts more transparent………………………………………..Full Article: Source

HKBN IPO priced at top of range as GIC, CVC, Carlyle raise nearly S$1b

Posted on 06 March 2015 by VRS  |  Email |Print

US private equity firm CVC Capital Partners, Singapore’s sovereign wealth fund GIC and a unit of Carlyle Group raised a combined HK$5.5 billion (S$966 million) after Hong Kong’s second-largest broadband Internet provider HKBN priced its initial public offering at the top end of the marketed range, people familiar with the deal said today (March 5).
The IPO was priced at HK$9 per share, at the top of the HK$8 to HK$9 indicated range, said the sources, who couldn’t be named because details of the sale of 645 million shares weren’t yet public. Two other investors raised about HK$310 million in the listing, from which HKBN - previously known as Hong Kong Broadband Network - itself received no funds. No new shares were offered in the sale, worth HK$5.8 billion in total………………………………………..Full Article: Source

CVC, GIC, Carlyle raise $750 mln after HKBN prices IPO at top of range

Posted on 05 March 2015 by VRS  |  Email |Print

Private equity firm CVC Capital Partners, a unit of Carlyle Group LP and Singapore’s sovereign wealth fund GIC raised a combined $750 million after Hong Kong’s second-largest broadband Internet provider, HKBN, priced its initial public offering at the top of expectations, IFR reported on Thursday citing people familiar with the deal.
The IPO was priced at HK$9 per share, at the top of the HK$8 to HK$9 marketing range, according to IFR, a Thomson Reuters publication. CVC, GIC and Carlyle’s AlpInvest Partners were among HKBN shareholders offering 645 million existing shares in the IPO. HKBN, previously known as Hong Kong Broadband Network, raised no funds from the offering………………………………………..Full Article: Source

Khazanah to float RM1b sukuk to fund schools

Posted on 02 March 2015 by VRS  |  Email |Print

Khazanah, Malaysia’s sovereign wealth fund, yesterday announced plans to issue a sukuk (Islamic bond) worth up to RM1 billion to help fund schools. The fund’s managing director Tan Sri Azman Mokhtar, speaking to Reuters on the sidelines of an Islamic finance function here, said the planned “social impact sukuk” is awaiting regulatory approval from Malaysian financial regulators.
Approval, said Azman, could come within two months. Khazanah, which holds a portfolio worth about RM112 billion, said the move is aimed at opening funding for education to a broad pool of investors rather than financing it out of its own reserves………………………………………..Full Article: Source

Malaysia sovereign fund plans $279 mln “social impact” sukuk

Posted on 27 February 2015 by VRS  |  Email |Print

Malaysia’s $40 billion sovereign wealth fund Khazanah Nasional plans to issue a sukuk worth up to one billion ringgit ($279.17 million) to help fund schools, its managing director said on Thursday.
Speaking to Reuters on the sidelines of an Islamic finance event in London, the fund’s head Azman Mokhtar said the planned “social impact sukuk” is awaiting regulatory approval from Malaysian financial regulators. The move is aimed at opening funding for education to a broad pool of investors rather than financing it out of its own reserves, he added………………………………………..Full Article: Source

GIC among shareholders in HKBN IPO that could raise S$1b

Posted on 24 February 2015 by VRS  |  Email |Print

HKBN, Hong Kong’s second-largest broadband Internet provider, will launch its initial public offering today, with shareholders including GIC looking to raise up to HK$5.8 billion (S$1 billion), Thomson Reuters’ IFR reported. At the top of its indicative range, the IPO would be the second-largest in the Asia-Pacific region this year, after the US$1.13 billion (S$1.5 billion) raised by Jasmine International’s Internet infrastructure fund in Bangkok earlier this month.
GIC, private equity firm CVC Capital Partners, HKBN’s management and other shareholders will offer 645 million existing shares in an indicative range of HK$8 to HK$9 each, IFR said, citing sources familiar with the plans. HKBN, previously known as Hong Kong Broadband Network, will raise no funds from the IPO, with all proceeds going to GIC and other selling shareholders………………………………………..Full Article: Source

Malaysia’s 1MDB Says May Sell Land Assets, Equity in Projects

Posted on 20 February 2015 by VRS  |  Email |Print

Malaysia’s 1MDB said it may sell assets and its real estate projects will sell land development rights and could enter into profit-sharing joint ventures, as the state fund seeks to cut down on its massive debt burden. Announcing the completion of a strategic review that begun last month, the fund also said it will meet maturing debt by refinancing from “best available sources” or repay it through the sale of land development rights.
1MDB has racked up debt of 41.9 billion ringgit ($11.6 billion) in a major spending spree to build up a portfolio of power plants. It confirmed that it plans to list its power assets this year. 1MDB’s debt woes have weighed on the ringgit in recent months. The ringgit was up 0.2 percent against the dollar after the announcement………………………………………..Full Article: Source

NSSF to buy bonds

Posted on 13 February 2015 by VRS  |  Email |Print

The National Social Security Fund (NSSF) has unveiled plans to buy bonds of high growth potential start-ups on the Growth Enterprise Market Segment (GEMS). The fund intends to buy well-designed bonds on the alternative market and later sell the same to new investors through the stock exchange; the move is expected to bolster the segment.
Richard Byarugaba, the NSSF managing director, told the media at Workers House that discussions have been held with the Capital Markets Authority (CMA) and the Uganda Securities Exchange (USE) on the prospects of the bonds. He revealed that separate discussions have been held with senior offi cials of Bank of Uganda about increasing the variety of investment instruments such as infrastructure bonds, like is currently available in Kenya and Rwanda………………………………………..Full Article: Source

1MDB’s debt burden sparks fears of fallout for Malaysian economy

Posted on 05 February 2015 by VRS  |  Email |Print

When Ananda Krishnan, Malaysia’s second-richest man, sold a collection of power plants to a little-known fund called 1MDB in 2009, few outside Southeast Asia’s third-largest economy paid any attention. But reports that the 76-year-old tycoon, whose fortune is estimated by Forbes at $9.8bn, is close to getting his hands back on some of those assets have catapulted the now heavily indebted state-run 1MDB - or 1Malaysia Development Berhad - into the spotlight.
Set up six years ago, 1MDB has no less a figure than the country’s prime minister, Najib Razak, chairing its advisory board, while Goldman Sachs, the Wall Street bank, has twice arranged multibillion-dollar debt issues for it……………………………………….Full Article: Source

Resurgent banking market sees Irish SWF shift to junior debt, equity funding

Posted on 04 February 2015 by VRS  |  Email |Print

A resurgent banking sector has seen the Ireland Strategic Investment Fund (ISIF) reassess its role as debtor to Irish companies, with rising competition from lenders leading the sovereign wealth fund to consider other roles.
Donal Murphy, the €7.1bn fund’s head of infrastructure and credit finance, told IPE the funding gap that existed after the financial crisis was often no longer there, replaced by a “wall of liquidity coming from bank debt back into Ireland”. “There are plenty of scenarios where there is a very competitive bank market with a large number of banks seeking roles on individual transactions and individual deals,” he said………………………………………..Full Article: Source

1MDB Said to Seek Loan Extension Before $3 Billion Energy IPO

Posted on 28 January 2015 by VRS  |  Email |Print

1Malaysia Development Bhd. is planning to seek another one-month extension on a 2 billion ringgit ($554 million) loan to give it more time to sell a stake in its energy unit, two people familiar with the matter said.
The state-owned investment company needs more time to repay the debt as it’s still in discussions with billionaire T. Ananda Krishnan, Malaysia’s second-richest person, said the people who asked not to be named as the process is private………………………………………..Full Article: Source

Mumtalakat won’t sell assets to plug shortfall

Posted on 26 January 2015 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat will not sell any assets or change its investment strategy in response to a likely oil price-driven shortfall in the state budget, it said. The fund holds stakes in Bahraini companies including Alba, Gulf Air and Batelco.
Mumtalakat is fully state-owned, but unlike a sovereign wealth fund it receives no surplus cash from the government, investing money generated from its own returns. State inflows to sovereign funds are in doubt this year across the Gulf region………………………………………..Full Article: Source

Private equity: The definition of an opaque asset class

Posted on 26 January 2015 by VRS  |  Email |Print

At a private equity conference years ago, I sat beside a couple of trustees from a small pension fund. Nice men, highly educated and intelligent, and wanting to do their best for their members, but utterly clueless about investments. Going straight to direct investment is not always wise, as the $72bn Korea Investment Corporation found. The sovereign wealth fund said last year it would change its strategy after direct investing produced “disappointingly lower returns” than investing through funds.
“Who could know more of Korean projects than KIC? Who could be better versed in what is happening in Singapore than GIC or Temasek?” asked KIC’s chairman and chief executive, referring to two Singaporean sovereign funds………………………………………..Full Article: Source

1MDB IPO: A chance to get it right

Posted on 19 January 2015 by VRS  |  Email |Print

Just when it looked like state-backed 1MDB was finally ready to put its energy assets on the market for Malaysia’s biggest IPO in years, the listing has come up against another delay. That hardly inspires confidence in the sovereign wealth fund. But with a new president in place, there is now a chance to set things straight — not only for the country’s capital markets but also for the sovereign itself.
There has been no end to the controversies surrounding Malaysia’s sovereign wealth fund 1MDB. For a start, it was facing a backlash from local politicians about billions of dollars it had stored in the Cayman Islands………………………………………..Full Article: Source

GIC, Ironbridge plan IPO of Australian car-lease firm FleetPartners

Posted on 16 January 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC and Australian private equity firm Ironbridge Capital are planning an initial public offering of FleetPartners Ltd in a deal that would value the car leasing company at about US$615 million, a source said.
The IPO was expected as early as April, the person, who had direct knowledge of the matter, told Reuters on Wednesday. It was not clear yet how much of the company was up for sale but the source said between 50 and 80 per cent is likely to be on the block. He did not want to be named as the transaction was confidential………………………………………..Full Article: Source

Malaysia’s sovereign wealth fund earns over $1B from Alibaba IPO

Posted on 16 January 2015 by VRS  |  Email |Print

Alibaba’s IPO late last year earned many happy investors a fortune – Yahoo, for example, raked in a massive US$9.4 billion after selling off its shares. Yesterday, Malaysia’s sovereign wealth fund Khazanah revealed that it too made a tidy profit of more than US$1 billion in selling a part of its Alibaba holdings, according to the Financial Times.
In its financial report for 2014, Khazanah disclosed that it invested US$400 million in Alibaba in the last two years, giving it a stake of 0.6 percent. It continues to hold an undisclosed amount of shares after selling some post-IPO………………………………………..Full Article: Source

GIC, Ironbridge plan IPO of Australian car-lease firm FleetPartners-Reuters

Posted on 15 January 2015 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC and Australian private equity firm Ironbridge Capital are planning an initial public offering of FleetPartners Ltd in a deal that would value the car leasing company at about $615 million, a source said.
The IPO was expected as early as April, the person, who had direct knowledge of the matter, told Reuters on Wednesday. It was not clear yet how much of the company was up for sale but the source said between 50 and 80 percent is likely to be on the block. He did not want to be named as the transaction was confidential………………………………………..Full Article: Source

1MDB Says It’s ‘Responsible’ Borrower Amid Debt Concerns

Posted on 07 January 2015 by VRS  |  Email |Print

1Malaysia Development Bhd., the country’s state investment company, defended its credentials as a borrower after a newspaper reported it failed to repay a loan of more than $500 million last month.
“As far as the banking sector and the credit sector is concerned, we are responsible borrowers” and the company has never defaulted, Arul Kanda, who was named president of 1MDB yesterday, said in an interview. “We need to manage the use of our cash in the most efficient way for the company.”……………………………………….Full Article: Source

IPO setback for 1MDB? Chief exec replaced

Posted on 06 January 2015 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) will be welcoming its third chief executive in a space of just over five years since it was established, as the government-sponsored investment fund struggles to complete the submission of the listing of its energy unit.
Malaysian-born, Dubai-based banker, Arul Kanda Kandasamy (pic), will replace 1MDB chief executive Mohd Hazem Abdul Rahman, who was appointed to the post in August 2012. 1MDB chairman Tan Sri Lodin Wok Kamaruddin announced the appointment of Arul Kanda as president and group executive director of 1MDB with immediate effect and described the change as “part of a transition plan”………………………………………..Full Article: Source

Malaysia’s 1MDB delays $3.2 billion Islamic bond to 2015: Sources

Posted on 12 December 2014 by VRS  |  Email |Print

Malaysia’s sovereign wealth fund, 1Malaysia Development Bhd, has postponed the sale of up to 8.4 billion ringgit (S$3.2 billion) of Islamic bonds to 2015, according to two people familiar with the matter.
The delay comes as the state fund, known as 1MDB, is seeking an extension of up to two months on the construction of a $3.2 billion power plant project it won with partner Mitsui & Co Ltd in February. “The process (bond issuance) will resume as soon as new timing is confirmed, subject to the Energy Commission’s approval, of course,” one of the people briefed on the matter said………………………………………..Full Article: Source

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