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As IPO markets stumble, private equity buyers prepare to swoop

Posted on 20 October 2014 by VRS  |  Email |Print

Across Europe, companies hoping to list are having their plans dashed by plunging equity prices. But what’s bad for public stock markets may be good for private equity firms. Having started the year with a record $1 trillion cash pile, private equity funds have found few chances to spend it, despite pressure from investors wanting them to put the money to work.
The most likely scenario would be for sovereign wealth funds such as the Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC to become so-called cornerstone investors by buying a sizeable stake in Spie at a pre-agreed price to underpin a fresh attempt at an IPO………………………………………..Full Article: Source

Khazanah’s SCR offer ‘fair’, says MAS

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysia Airlines (MAS) says its minority shareholders should accept Khazanah Nasional Bhd’s proposed selective capital reduction and repayment exercise (SCR) for the national airline as it is “fair”. MAS directors yesterday recommended the plan after the audit committee found parent Khazanah’s offer fair and reasonable, MAS said in a filing to Bursa Malaysia.
Khazanah in August proposed 27 sen per share totalling RM1.38 billion to buy the remaining 30.6 per cent stake it doesn’t own in the airline. The sovereign wealth fund plans to delist MAS by buying out the minority shareholders in the first stage of restructuring………………………………………..Full Article: Source

MAS asks shareholders to take Khazanah’s RM1.38b offer

Posted on 16 October 2014 by VRS  |  Email |Print

Malaysian Airline System Bhd., the carrier reeling from the crash of two planes this year, said small shareholders should accept a buyout offer from the carrier’s majority owner as it called the proposal fair. The airline’s directors recommended the plan after the audit committee found parent Khazanah Nasional Bhd.’s offer fair and reasonable, the Subang, Malaysia-based company said in a statement to the stock exchange today.
In August, the sovereign wealth fund proposed 27 sen per share, totalling RM1.38 billion (US$421 million), to buy the remaining 30.6 per cent stake it doesn’t own in the company. Khazanah is delisting the airline by buying out minority shareholders in the first stage of restructuring aimed at reviving the flag carrier………………………………………..Full Article: Source

Putrajaya bailing out 1MDB by boosting IPO value, says DAP lawmaker

Posted on 15 October 2014 by VRS  |  Email |Print

Putrajaya is bailing out 1Malaysia Development Bhd (1MDB) through several power plant projects worth billions of ringgit, DAP national publicity secretary Tony Pua said. Pua, the Petaling Jaya Utara MP, questioned the latest power project awarded to 1MDB – a 2,000MW gas-turbine power plant in Malacca given via direct negotiation.
He said although the government had rescued 1MDB in a written reply to his parliamentary question on a power project awarded to 1MDB, circumstances as to how the tenders were awarded suggested otherwise………………………………………..Full Article: Source

1MDB bets on RM18 billion IPO to quell brickbats

Posted on 10 October 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB), the country’s controversial sovereign fund, is regrouping its power assets under a new company called Virtus Energy ahead of a listing early next year that bankers say could raise as much as RM18 billion.
In an exclusive report, The Edge Review said the jumbo listing, which would be Asia’s largest, was part of a major corporate restructuring that government officials hoped would head off a growing political storm over 1MDB’s secretive dealings and the heavy toll its borrowings are starting to take on several of the country’s top banks………………………………………..Full Article: Source

1MDB’s Project 3B to raise RM8 billion with Islamic bonds

Posted on 09 October 2014 by VRS  |  Email |Print

Malaysia sovereign fund 1Malaysia Development Bhd (1MDB) will raise RM8.4 billion (US$2.56 billion) with Islamic bonds to build a power plant. 1MDB, which is chaired by Prime Minister Najib Razak, is partners with Mitsui & Co Ltd on the 2,000 megawatt coal-fired plant, known as Project 3B.
The consortium will rely on Islamic bonds to cover most of the RM11 billion needed for the project, after plans to raise RM8.4 billion via a debt programme led by Japan Bank for International Cooperation fell through, IFR said. AmInvestment Bank is the sole lead manager on the sukuk, which has been set to close by November, it added……………………………………….Full Article: Source

Malaysia’s 1MDB near new debt deal, seeks January listing

Posted on 08 October 2014 by VRS  |  Email |Print

Malaysian sovereign fund 1Malaysia Development Bhd (1MDB) is preparing to list its power assets in January, seeking to raise more than US$3 billion (S$3.8 billion), after finalising a second debt refinancing agreement this month, sources with direct knowledge of the matter said.
Plans for the IPO, which is aimed at helping 1MDB cut down a debt burden exceeding US$11 billion, had been delayed due to a longer-than-expected due diligence process and negotiations surrounding its first debt refinancing agreement. 1MDB, which owns 16 power and desalination plants in six countries, is aiming to file its listing application later this month, three people familiar with the matter told Reuters………………………………………..Full Article: Source

Indonesia’s Bumi slashes size of rights issue as creditors spurn shares

Posted on 07 October 2014 by VRS  |  Email |Print

Indonesia’s biggest coal miner Bumi Resources, which had planned to sell new shares to its creditors as a form of debt repayment, said it had slashed the size of the rights issue by about half due to tepid demand.
Of the issuance, Chinese sovereign wealth fund China Investment Corp has already subscribed to 6.9bn Bumi shares worth US$150m. In October last year, CIC agreed to convert part of Bumi’s debt into stakes in the miner and associated subsidiaries………………………………………..Full Article: Source

1MDB’s offering to push sukuk sales in Malaysia above RM50b

Posted on 24 September 2014 by VRS  |  Email |Print

The world’s biggest Islamic debt offering this year from Malaysia’s sovereign wealth fund will push the nation’s sukuk sales beyond RM50 billion for only the second time in 16 years. 1Malaysia Development Bhd (1MDB) plans to sell as much as RM8.4 billion of the notes, adding to the RM46.9 billion sold so far that’s almost double the amount a year earlier.
After 2012’s record issuance of RM95.8 billion, CIMB Group Holdings Bhd and Asian Finance Bank Bhd see RM100 billion as being achievable in the next few years………………………………………..Full Article: Source

1MDB planning ‘biggest bond sale’, say sources

Posted on 22 September 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) plans to sell as much as RM8.4 billion of Islamic bonds, the world’s biggest offering of sukuk in 2014, said two people familiar with the matter.
The sovereign wealth fund, whose debt has tripled in two years, is seeking approval from the Securities Commission Malaysia (SC) for the sale, said the people who asked not to be named because the information is private. The proceeds will be used to help fund construction of a 2,000MW plant in Negri Sembilan, they said……………………………………….Full Article: Source

1MDB said to be planning RM8.4b sukuk

Posted on 19 September 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) is said to be in the midst of selling up to RM8.4 billion worth of sukuk, the largest globally so far this year. A report in Bloomberg yesterday said the sovereign wealth fund is seeking approval from the Securities Commission (SC) on the said issuance and has chosen AmInvestment Bank Bhd as the sole lead arranger and manager.
Proceeds from the issuance, which would be sold through 1MDB’s 70 per cent-owned subsidiary Jimah East Power Sdn Bhd, would be used to finance the construction of a 2,000-megawatt power plant in Negri Sembilan. 1MDB initially sought to raise RM9.6 billion stateearlier this year through a listing of its energy assets, which at that time was set to be the nation’s second-biggest initial public offering (IPO)……………………………………..Full Article: Source

1MDB’s IPO delayed due to LONGER-THAN-EXPECTED due diligence

Posted on 16 September 2014 by VRS  |  Email |Print

Malaysian state investor 1Malaysia Development Bhd (1MDB) has delayed a more than US$3 billion IPO due to a longer-than-expected due-diligence process and negotiations around the restructuring of a RM5.5 billion (US$1.7 billion) loan, people familiar with the matter said.
The IPO, which was due to be launched in the fourth quarter of this year, is now likely to take place in the first few months of 2015 at the earliest, said the people, who declined to be named as the matter remained confidential. 1MDB, seen as a cross between a sovereign wealth fund and a private investment vehicle, is struggling with a debt burden exceeding US$11 billion. It plans to reduce some of this debt by selling its power assets via the IPO………………………………………..Full Article: Source

IMDB likely to delay power IPO to next year

Posted on 10 September 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) will likely defer listing its power assets to the first quarter of 2015. According to the report, one of the reasons for the delay was that 1MDB was still negotiating the terms of a loan it is seeking from banks.
The initial public offering (IPO), which would raise over US$3bil (RM9.57bil), was expected to be the largest IPO in South-East Asia this year. The WSJ reported that 1MDB had yet to apply for listing approval from securities regulators, including the stock exchange………………………………………..Full Article: Source

Khazanah EB succeeds, but Europe bid weighs

Posted on 08 September 2014 by VRS  |  Email |Print

Malaysian sovereign wealth fund Khazanah Nasional priced a US$500m exchangeable sukuk last week, three months after pulling its last deal, but European restrictions on sukuk sales meant demand there was restrained. The zero-coupon sukuk is exchangeable into shares of power producer Tenaga Nasional. It has a tenor of seven years and a put for investors after four. An option to increase the size by US$100m was not used.
The deal was said to be covered, but not massively oversubscribed, with allocations skewed to outright investors. The new notes were trading below par on the morning of September 4, at around 99.25………………………………………..Full Article: Source

Khazanah issues RM1.59bil Islamic bonds exchangeable into TNB shares

Posted on 05 September 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd has issued a US$500mil (RM1.59bil) seven-year sukuk that is exchangeable into Tenaga Nasional Bhd (TNB) shares. This is the second issuance by the state investment arm in three weeks.
Bloomberg reported that Khazanah, which is buying out the 30.6% it does not own in Malaysia Airlines, sold RM1.5bil Islamic bonds on Aug 16. The sukuk Khazanah issued three weeks ago has a five-year tenure with a 4.14% yield………………………………………..Full Article: Source

Khazanah Sells Islamic Bonds in Second Offer in Three Weeks

Posted on 05 September 2014 by VRS  |  Email |Print

Malaysia’s sovereign wealth fund sold Islamic bonds for the second time in three weeks as it moved ahead with a buyout of the national airline. Khazanah Nasional Bhd. today issued $500 million of seven- year sukuk that are convertible into equities of state power company Tenaga Nasional Bhd., according to a company statement. The notes were priced to yield minus 0.05 percent and can be swapped into the utility’s shares at a 15 percent premium after the fourth year, the fund said.
Khazanah is in the process of purchasing the 30.6 percent stake in Malaysian Airline System Bhd. that it doesn’t already own and will then delist the carrier from the stock exchange. The fund announced last week a 6 billion-ringgit ($1.9 billion) plan to revive the airline………………………………………..Full Article: Source

Malaysia’s Khazanah Nasional Plans to Issue Convertible Bonds

Posted on 04 September 2014 by VRS  |  Email |Print

Malaysian state investment fund Khazanah Nasional Bhd. is seeking to raise $500 million from the sale of bonds that can be converted into shares of power company Tenaga Nasional Bhd., people familiar with the deal said Wednesday. The bond sale comes as Khazanah is preparing to embark on a restructuring of embattled flagship carrier Malaysia Airlines after the loss of two passenger planes this year. Khazanah scrapped a plan to raise up to $750 million in convertible bonds in Tenaga in June because of lower-than-expected pricing.
“Proceeds from the sale will be used for general working capital and to monetize its holdings in Tenaga,” one of the people said, noting that the seven-year bond offering could be increased to $600 million………………………………………..Full Article: Source

World’s Biggest Wealth Fund Says U.S. Corporate Debt Boom Ending

Posted on 29 August 2014 by VRS  |  Email |Print

The head of debt investment at Norway’s $880 billion sovereign wealth fund, the world’s largest, said a rally in U.S. corporate bonds may be coming to an end.
Looking at “American corporate investment grade bonds, we see that the spread lies around 100 basis points, that is nearly just as low as they were before the financial crisis,” Ole Christian Froeseth, head of fixed-income at the oil fund, said in a lecture in Oslo today. “One can argue that there isn’t much juice left in this spread, especially not in relation to where we were during the financial crisis.”……………………………………….Full Article: Source

Norway Buys Yen Bonds as Local Pension Fund Cuts: Japan Credit

Posted on 25 August 2014 by VRS  |  Email |Print

Norway’s wealth fund, the world’s biggest, is diving into Japanese sovereign bonds, even as Japan’s government retirement fund prepares to cut holdings. The Oslo-based Government Pension Fund Global increased Japanese sovereign allocations 15 percent to 160.8 billion kroner ($26 billion) in June from the end of 2013, its biggest debt holding after U.S. Treasuries, the investor said.
Japan’s Government Pension Investment Fund, the world’s largest pool of retirement money, has signaled it will put more of its $1.23 trillion into domestic and overseas equities………………………………………..Full Article: Source

Norway to keep $8.2bn Russian assets – for now

Posted on 21 August 2014 by VRS  |  Email |Print

Norway’s massive sovereign wealth fund yesterday announced that it was likely to hang on to its $8.2bn (£4.93bn) worth of Russian assets des­pite Western sanctions on Moscow. However, the $885bn fund – one of te world’s biggest investors said it did not plan further purchases because of political risk.
The fund has $8.2 billion invested in Russian bonds and stocks, and kept that holding broadly unchanged in recent months, chief executive, Yngve Slyngstad told a news conference. During that time, western countries imposed sanctions on Russia, accusing it of backing separatist rebels in eastern Ukraine. Moscow, denying the charge, hit back by stopping imports of many food products………………………………………..Full Article: Source

ETF providers take on pension and sovereign wealth challenge

Posted on 21 August 2014 by VRS  |  Email |Print

Pension and sovereign wealth funds are not traditionally big investors in ETFs because of concerns over cost, flexibility and restrictions on buying listed securities. But that may be about to change as providers look to woo big institutional investors.
Of the 3,367 institutional buyers of exchange-traded funds (ETFs) across 50 countries in 2012 only 1% was a pension fund, while investment advisers accounted for 60%, according to consultancy ETFGI. Meanwhile few sovereign wealth funds admit to buying ETFs and some are decidedly negative about the products. For example, the $850 billion Government Pension Fund of Norway - the world’s largest sovereign wealth fund - states: “The fund does not invest through ETFs.”……………………………………….Full Article: Source

Malaysia’s Khazanah Sells $476 Million Ringgit Islamic Bonds

Posted on 20 August 2014 by VRS  |  Email |Print

Malaysia’s state-owned investment fund, which is offering to take the national airline private, sold 1.5 billion ringgit ($476 million) of Islamic bonds today, said two people with knowledge of the deal.
Khazanah Nasional Bhd. priced the five-year debt to yield 4.14 percent, within its earlier guidance of 4.1 percent to 4.18 percent, said the people who asked not to be named because the information hasn’t been made public yet. The issuance is part of a 7 billion ringgit program to raise funds for corporate purposes, they said………………………………………..Full Article: Source

Timor-Leste SWF hits 40% equities allocation

Posted on 13 August 2014 by VRS  |  Email |Print

The Central Bank of Timor-Leste has released the Quarterly Report of the Petroleum Fund of Timor-Leste for the second quarter of 2014, during which period the fund hit its new target of investing 40% of its assets-under-management in equities. The portfolio return in the quarter was 2.66% compared with the benchmark return of 2.73% – meaning that since the fund’s inception nine years ago, overall returns are exactly in line with the benchmark.
Over the quarter, the fund’s capital grew from $15.7 billion to $16.6 billion. Gross cash inflows to the fund from royalties and taxes were $541.3 million, while cash outflows were $3.87 million for direct external and internal management costs………………………………………..Full Article: Source

Controversial 1MDB’s IPO delay

Posted on 12 August 2014 by VRS  |  Email |Print

1MALAYSIA Development Bhd’s (1MDB) plans to float its energy unit, 1MDB Power, in the second half of this year may be postponed to early 2015 as the sovereign wealth fund has to make adjustments to its financial books, analysts said.
They said the initial public offering (IPO), targeted to raise US$3 billion (RM9.6 billion), has been put on hold while 1MDB clears some issues with Maybank Invesment Bank Bhd (MIBB), one of its listing advisers. 1MDB officials have declined to comment on the matter. At US$3 billion, the planned IPO was set to become Malaysia’s second-largest public offer after Felda Global Ventures Holdings Bhd’s RM10 billion IPO in June 2012……………………………………Full Article: Source

Malaysia Airlines to be delisted after €320m offer

Posted on 11 August 2014 by VRS  |  Email |Print

Malaysia Airlines will be delisted after sovereign wealth fund Khazanah Nasional offered to buy out minority shareholders in a restructuring plan for the national carrier that suffered two disasters this year.
Khazanah will pay 27 sen a share for a total of 1.38bn ringgit (€320m) to buy the remaining 30.6pc it doesn’t own. The airline will need “substantial funding requirements” for the next few years to sustain operations, the company said. Malaysian Prime Minister Najib Razak said the revamp will involve “painful steps and sacrifices”. The carrier is struggling to stem losses and repair its image after the downing of Flight 17 in Ukraine last month compounded woes from the disappearance of a jet in March…………………………………Full Article: Source

Singapore’s GIC upped asset exposure to PE, bonds & emerging mkt equities in FY14

Posted on 05 August 2014 by VRS  |  Email |Print

Singapore’s GIC, one of the most active sovereign wealth funds in India, upped its exposure to private equity as an asset class besides bonds and emerging markets equities for the year ended March 31, 2014, as per its annual report.
As per the report, GIC cut its exposure to developed economy equities to 29 per cent, from 36 per cent during the same period. Development market equities which used to be the single biggest class for GIC in FY13 fell below bonds last year. The sovereign fund also upped its exposure to inflation-linked bonds last year………………………………………..Full Article: Source

Doubts raised over Qatar interest in VTB bond issue

Posted on 31 July 2014 by VRS  |  Email |Print

Sanctions imposed on the Russian bank VTB have thrown into doubt interest from one of the institution’s key shareholders in a planned bond issue. Qatar Holding, the direct investment arm of the gas-rich state’s sovereign wealth fund, had been a supportive shareholder of VTB since acquiring a 2.9 per cent stake during the Russian lender’s initial public offering last year.
Qatar Holding, which expanded into Russian property this year, had been mulling investing in a VTB bond that was being planned before the imposition of US and EU sanctions………………………………………..Full Article: Source

Institutions Shift to Exchange-Traded Funds as Futures Grow Costly

Posted on 31 July 2014 by VRS  |  Email |Print

Institutional investors, like endowments and sovereign wealth funds, are trading some of their stock futures contracts for exchange-traded funds, an action they say saves them money and effort while providing comparable returns.
It is a shift prompted by the regulation-driven rising cost of futures trading, and it has ETF issuers such as BlackRock Inc salivating. In the past six months, the largest U.S. ETF provider said it had some $2 billion in trades into ETFs from investors that previously bought futures and swaps with that money………………………………………..Full Article: Source

Norway sovereign fund buys into Reach Energy IPO

Posted on 24 July 2014 by VRS  |  Email |Print

Malaysia’s Reach Energy Bhd has attracted investors including Norway’s US$890 billion (RM2.82 trillion) sovereign wealth fund in an initial public offering (IPO) to fund its acquisitions of oil and gas fields.
Norges Bank Investment Management, the world’s largest sovereign wealth fund, is among cornerstone buyers in the RM750 million IPO of Reach Energy, managing director Shahul Hamid Mohd Ismail said in an interview……………………………………….Full Article: Source

Kazkommertsbank will buy back shares at $5.2 per GDR

Posted on 24 July 2014 by VRS  |  Email |Print

Kazkommertsbank offered Samruk-Kazyna and minority shareholders to repurchase 79 million common shares at 475 tenge per share, or $5.2 per GDR (P/B of 1.0x). The buyback will reduce outstanding shares by 10.2%, a half of Samruk-Kazyna’s stake of 21.2%. KKB will spend only T37.6bn on the repurchase, constrained by a clause in the company’s law, which limits buyout expenses to no more than 10% of its book equity (T376.6bn at the end of March 2014).
Assuming all minority shareholders participate, and given that the legislation guarantees equal treatment of Samruk-Kazyna and minority shareholders, the buyback size restriction translates into a purchase of 35.8% of shares owned by these two groups of eligible shareholders……………………………………….Full Article: Source

IL&FS Transportation Networks to raise up to $166M via QIP, convertible bonds

Posted on 23 July 2014 by VRS  |  Email |Print

IL&FS Transportation Networks Ltd, a subsidiary of IL&FS that develops and manages toll roads, has received the board approval to raise up to Rs 1,000 crore ($165.9 million) through further issue of equity shares of the company, the company said in a stock market disclosure. It is backed by StanChart IL&FS Asia Infrastructure Growth Fund, Bessemer Venture Partners and Norwegian sovereign wealth fund Government Pension Fund Global.
Its private equity investors include Standard Chartered IL&FS Asia Infrastructure Growth Fund and Bessemer Venture Partners. The firm also counts Norwegian sovereign wealth fund Government Pension Fund Global as a shareholder………………………………………..Full Article: Source

Kazakhstan’s Air Astana sees possible IPO in 2016

Posted on 16 July 2014 by VRS  |  Email |Print

Air Astana (KC, Astana) is considering going public over the next two or three years president Peter Foster, has announced. The Wall Street Journal quotes Foster as saying an IPO had become a necessity given its ambitious expansion plans.
Majority-owned by the Kazakh sovereign wealth fund, Samruk Kazyna, the carrier is a joint-venture with BAe Systems (B1, Warton) which owns the remaining 49%. On the back of growing profitability - the carrier generated a profit of USD46million last year - Air Astana has outlined plans to develop Astana into a regional and international transit hub………………………………………..Full Article: Source

Luye Pharma aims for IPO at top end of range

Posted on 07 July 2014 by VRS  |  Email |Print

Luye Pharma Group, a Chinese drugmaker backed by Singapore’s sovereign wealth fund, and the company’s owners are poised to raise US$764 million (S$952 million) from a Hong Kong initial public offering (IPO), sources said.
The company plans to sell shares at HK$5.92 (S$0.952) apiece, the top end of a marketed range that started at HK$5.38, said the sources. Luye Pharma and existing investors, including Singapore’s GIC, offered 999.6 million shares in the sale, the firm’s IPO prospectus showed………………………………………..Full Article: Source

Malaysia’s 1MDB plans large-scale IPO

Posted on 04 July 2014 by VRS  |  Email |Print

Malaysia is set for its largest initial public offering so far this year after 1MDB, a vast sovereign wealth fund formed only five years ago, unveiled plans for a listing of its power generation assets that could raise up to $3bn.
1MDB said it had appointed Deutsche Bank, Goldman Sachs, and two local banks Maybank and AmBank as advisers for the IPO, which would take place on Bursa Malaysia in the fourth quarter………………………………………..Full Article: Source

Malaysia’s 1MDB seeks more than S$3.7 bln from energy assets IPO

Posted on 04 July 2014 by VRS  |  Email |Print

Malaysian state investor 1Malaysia Development Bhd (1MDB) is seeking to raise more than US$3 billion (S$3.7 billion) through a stock market listing of its energy assets, in what is set to be the nation’s second-biggest initial public offering (IPO).
Struggling under the burden of US$11 billion in borrowed money, 1MDB is regarded as a cross between a sovereign wealth fund and a private investment vehicle. Prime Minister Najib Razak chairs its advisory board. 1MDB, which owns 16 power and desalination plants in six countries, has appointed Deutsche Bank and Maybank as joint global coordinators for the IPO, which is slated to take place in the fourth quarter of 2014, the company said………………………………………..Full Article: Source

Luye Said to Plan Pricing of $764 Million IPO at Top End

Posted on 04 July 2014 by VRS  |  Email |Print

Luye Pharma Group Ltd., a Chinese drugmaker backed by Singapore’s sovereign wealth fund, and the company’s owners are poised to raise $764 million from a Hong Kong initial public offering, people with knowledge of the matter said.
The company, based in eastern China’s Yantai city, plans to sell shares at HK$5.92 apiece, the top end of a marketed range that started at HK$5.38, said the people, who asked not to be identified because the information is private. Luye Pharma and existing investors including GIC Pte offered 999.6 million shares in the sale, according to the company’s IPO prospectus………………………………………..Full Article: Source

Shareholders of Indonesia’s Bumi Resources approve rights issue plan

Posted on 01 July 2014 by VRS  |  Email |Print

Shareholders of PT Bumi Resources Tbk approved the Indonesian coal miner’s plan to raise 8.05 trillion rupiah ($680 million) through a rights issue to reduce its debt to sovereign wealth fund China Investment Corp (CIC).
“It has been approved. Now we implement the shareholders resolution,” company director Dileep Srivastava told reporters on Monday. Bumi, controlled by the Bakrie Group, planned to sell about 32.2 billion shares at 250 rupiah each, according to a prospectus released last week. Proceeds from the sale would be used to pay off part of the miner’s debt to CIC………………………………………..Full Article: Source

Luye Pharma, Owners Seek Up to $764 Million From Hong Kong IPO

Posted on 24 June 2014 by VRS  |  Email |Print

Luye Pharma Group Ltd., a Chinese drugmaker backed by Singapore’s sovereign wealth fund, and existing owners are seeking to raise as much as $764 million from a Hong Kong initial public offering.
The company and its investors are selling 999.6 million shares at HK$5.38 to HK$5.92 each, according to terms for the deal obtained by Bloomberg News. The shareholders include GIC Pte as well as Chinese private equity firms CDH Investments Fund Management Co. and Citic Private Equity Funds Management Co., the terms show………………………………………..Full Article: Source

Reforms open up opportunities in Chinese asset management

Posted on 23 June 2014 by VRS  |  Email |Print

China’s efforts to liberalise its currency and open its capital markets are also creating job opportunities for people in the asset management industry. This is particularly true of sales and investment management, recruiters say.
On the institutional side, investors such as the China Investment Corporation, the world’s fourth largest sovereign wealth fund, as well as the National Council for Social Security Fund, are diversifying offshore and increasingly outsourcing their portfolios to external managers………………………………………..Full Article: Source

Mubadala to convert Dh134m of Tabreed bonds into shares

Posted on 10 June 2014 by VRS  |  Email |Print

National Central Cooling Company (Tabreed) has said in a media statement that it has been notified by its bondholder, Mubadala Development Company (Mubadala), of its intention to exercise its right to convert approximately Dh134 million in mandatory convertible bonds (MCB) into shares.
The conversion of the MCB, whose issuance was approved by Tabreed’s shareholders at the annual general assembly on April 16, 2013, will result in 79.4 million new shares being issued to Mubadala and will increase Tabreed’s issued shares to approximately 738.5 million, it noted………………………………………..Full Article: Source

GIC bets big on Chinese debt

Posted on 09 June 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC is making waves in the Asian debt markets with a series of unusually big investments in bonds from China.
According to market sources, in recent weeks, GIC has bought US$700m of unrated 4.7% bonds due 2019 from computer maker Lenovo, a US$400m 2019 private placement from property developer Vanke, and a HK$2bn (US$258m) 3.2% 2020 note from internet group Tencent Holdings………………………………………..Full Article: Source

Dream issue fizzles for Khazanah

Posted on 09 June 2014 by VRS  |  Email |Print

Hard-to-please Malaysian sovereign wealth fund Khazanah Nasional pulled its US$500m exchangeable sukuk last Wednesday, even though the book was covered within the range and highly aggressive terms were available.
In a message to investors, Khazanah said the book was well oversubscribed within two hours of launch, with orders from more than 50 high-quality investors, but said price sensitivity prevented it from achieving its pricing objectives. The deal had traded below par in the grey market, indicating subdued demand………………………………………..Full Article: Source

Green Dragon Gas: GIC signs up for second slice of bond

Posted on 06 June 2014 by VRS  |  Email |Print

Singapore’s sovereign wealth fund has fully subscribed for the second tranche of AIM-listed Green Dragon Gas’s convertible bond facility. The second chunk of the convertible bond, worth US$50mln, has been issued to GIC Private Limited.
It has a 7% coupon, a 36-month maturity, and can be converted at US$9.34 a share, equivalent to 558p a share. That is a premium to the current share price, which is just shy of 500p. Earlier this week, GIC converted the first tranche into 5.78mln shares early at a price of US$6.06 each………………………………………..Full Article: Source

1MDB says its debt poses no significant risk to Malaysia

Posted on 06 June 2014 by VRS  |  Email |Print

1MDB (1Malaysia Development Bhd) has dismissed reports that its debt poses significant risk to the sovereign rating and stability of Malaysia. In a rare response to media reports, 1MDB said in a statement posted on its website yesterday that as a limited liability company, 1MDB poses limited liability risks to the government as its shareholder.
The government guarantees RM5.8 billion of the group’s total loans, on which 1MDB has significant interest cover. 1MDB has never missed any payment schedule. “All of 1MDB’s debts are backed by the group’s operational assets, with healthy cash flows and strong growth potential beyond their finite life,” the statement said………………………………………..Full Article: Source

Malaysia’s Khazanah cancels $750 mln bond fundraising on unfavorable pricing-IFR

Posted on 06 June 2014 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd has canceled plans to sell up to $750 million worth of U.S. dollar-denominated bonds, after failing to reach its price targets from two hours of book building, IFR reported.
Khazanah, in a note to investors seen by Reuters, said it received solid market support for the bond with over 50 high-quality investors participating, but decided not to proceed with the deal as it missed specific pricing objectives………………………………………..Full Article: Source

Khazanah to sell up to US$750 million of exchangeable bonds

Posted on 05 June 2014 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd plans to sell up to US$750 million (RM2.4 billion) worth of US dollar-denominated bonds, exchangeable into shares, to raise funds for general corporate purposes.
Khazanah will sell US$500 million (RM1.6 billion) of bonds maturing in five years and an additional US$250 million (RM809 million) worth in the event of exceptional demand, the fund said in a term sheet seen by Reuters on Wednesday………………………………………..Full Article: Source

Investment Corporation of Dubai raises $1 billion from sukuk, bond issue

Posted on 28 May 2014 by VRS  |  Email |Print

The Dubai Government’s principal investment arm, the Investment Corporation of Dubai, has successfully priced a $1 billion sukuk and bond issue, strengthening the fund’s capacity to invest amid a rising market.
The ICD made the announcement on Tuesday for the dual tranche issue comprising six-year $700 million sukuk and 10-year $300 million conventional bonds. The sukuk profit rate was set at 3.508 per cent per annum while the coupon for the conventional bonds was 4.625 per cent. The dual tranche offering was very well received globally and generated a substantial order book that was more than three times oversubscribed………………………………………..Full Article: Source

Demand stampede for Investment Corporation of Dubai bonds

Posted on 28 May 2014 by VRS  |  Email |Print

Bonds sold earlier this month by the Investment Corporation of Dubai (ICD) sparked demand three times in excess of what was offered, signalling that investors have put debt woes behind them as the UAE’s economy flourishes.
ICD’s sale, the first for the Dubai government investment giant, also comes amid renewed interest in emerging market debt, an asset class that has been battered by the tapering of the US Federal Reserve’s monetary stimulus and political and economic instability in countries such as Russia, Brazil and Indonesia………………………………………..Full Article: Source

If ECB pumps, we buy: China wealth fund

Posted on 26 May 2014 by VRS  |  Email |Print

The chairman of China’s massive sovereign wealth fund has said that monetary easing in the euro zone would be “good news” and open up market opportunities.
China Investment Corporation (CIC), which is responsible for managing some of the country’s massive currency reserves, was founded in 2007 and has $575 billion of assets under management, according to the Sovereign Wealth Fund Institute, and is the fourth-largest wealth fund of its kind in the world………………………………………..Full Article: Source

Dubai’s ICD Tightens Price Guidance Ahead Of $1bn Debut Bond

Posted on 16 May 2014 by VRS  |  Email |Print

Investment Corporation of Dubai (ICD), the state-owned fund which holds stakes in some of the emirate’s top companies, has tightened price guidance ahead of its debut bond and sukuk issue later on Wednesday, a document from lead arrangers said.
Revised guidance earmarks the sukuk with a six year lifespan to price in the range of 155-165 basis points over midswaps, while the conventional bond offering of 10 years duration is due to come in the range of 200-210 bps over the same benchmark, the document said………………………………………..Full Article: Source

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