Sat, Dec 20, 2014
A A A
Welcome preal121
RSS

Sovereign Wealth Funds Briefing - Category | Asset Allocation more

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

Sukuk record scuppered as 1MDB delays 2014 sale

Posted on 10 December 2014 by VRS  |  Email |Print

Global Islamic bond sales look set to miss out on a record year after Malaysia’s sovereign wealth fund postponed what would have been 2014’s biggest offering. The top underwriter is also cautious over the coming year.
Issuance to date is US$2.1bil (RM4.2bil) shy of the unprecedented US$46.8bil (RM162.8bil) in 2012 and more than last year’s US$43.1bil (RM150bil) total, data compiled by Bloomberg show. 1Malaysia Development Bhd (1MDB) put off a plan to sell the equivalent of US$2.4bil (RM8.3bil) of sukuk until the first half of 2015, said two people with knowledge of the deal………………………………………..Full Article: Source

Qatar, Kuwait Wealth Funds Invest in Dubai Parks IPO

Posted on 09 December 2014 by VRS  |  Email |Print

Sovereign wealth funds from Qatar and Kuwait are among institutional investors that bought shares in the initial public offering of Dubai’s new theme park developer and operator.
Kuwait Investment Authority, Qatar Investment Authority, Gulf family offices and global institutional investors helped Dubai Parks & Resorts raise 2.53 billion dirhams ($690 million), the company said in a statement today. The institutional tranche was oversubscribed 65 times, attracting about 100 billion dirhams, while local investors made 10.9 billion dirhams of offers, according to the statement………………………………………..Full Article: Source

1MDB plans January meetings with cornerstones for US$3b energy IPO

Posted on 04 December 2014 by VRS  |  Email |Print

Heavily indebted 1Malaysia Development Bhd (1MDB) is planning meetings in January with potential cornerstone investors for the US$3 billion IPO of its power business 1MDB Energy, said sources familiar with the matter. The initial public offering is aimed at helping the state investor, known as 1MDB, reduce a debt burden that exceeds US$11.
billion. Plans for the sale had been delayed several times, bankers say, due to a longer-than-expected due diligence process and debt refinancing negotiations. Raising US$3 billion could place the 1MDB Energy IPO as Southeast Asia’s fifth-biggest listing ever, according to Thomson Reuters data………………………………………..Full Article: Source

Norway’s $870 Billion Fund Closer to Expanding Asset Pool

Posted on 03 December 2014 by VRS  |  Email |Print

Norway moved a step closer to deciding whether its sovereign wealth fund, the world’s largest, will be allowed to broaden its investments to include infrastructure as part of a strategy to increase returns.
The government will ask the $870 billion fund’s Strategy Council to assess whether the Government Pension Fund Global — the fund’s official name — should invest in unlisted infrastructure, the Finance Ministry said today. It will also look into raising the 5 percent cap on real estate investments………………………………………..Full Article: Source

Khazanah considers releasing Islamic bonds to finance business expansions

Posted on 26 November 2014 by VRS  |  Email |Print

Malaysia’s state-owned sovereign wealth fund is giving the government’s green financing initiative a boost with a plan to sell the nation’s first sukuk under socially responsible investment guidelines.
Khazanah Nasional Bhd. is considering issuing a benchmark sized ringgit-denominated Islamic bond to finance expansion in its education or renewable energy businesses, Chief Financial Officer Mohd Izani Ghani said in November 20 interview in Kuala Lumpur. The notes will probably be issued in the second half of 2015, he said………………………………..Full Article: Source

Bahrain’s Mumtalakat Said to Raise $600 Million From Sukuk

Posted on 19 November 2014 by VRS  |  Email |Print

Bahrain Mumtalakat Holding Co., the Gulf country’s sovereign wealth fund, raised $600 million from the sale of Islamic bonds, according to a person familiar with the deal, as it seeks funds to refinance debt.
The seven-year sukuk will be priced to yield 205 basis points, or 2.05 percentage points, over the benchmark midswap rate, said the person, asking not to be identified because the information is private. The price Mumtalakat paid fell from initial guidance of about 237.5 basis points above midswaps as demand increased, the person said………………………………….Full Article: Source

Bahraini fund Mumtalakat launches $600 mln seven-year sukuk

Posted on 19 November 2014 by VRS  |  Email |Print

Bahrain sovereign fund Mumtalakat has launched a $600 million seven-year sukuk at the tight end of its previously-marketed price range, with the sale set to complete later on Tuesday, a document from lead managers said.
The sukuk pricing was last revised to 210 basis points, plus or minus 5 bps, over midswaps, after being marketed initially at 220 bps over the same benchmark guidance. BNP Paribas, Deutsche Bank, Mitsubishi UFJ Financial Group and Standard Chartered are arrangers to the deal………………………………….Full Article: Source

1MDB Criticized by Lawmakers Before Sukuk Sale: Islamic Finance

Posted on 19 November 2014 by VRS  |  Email |Print

Malaysia’s opposition lawmakers are criticizing rising debt at the sovereign wealth fund as the company plans to sell the nation’s biggest sukuk of 2014. 1Malaysia Development Bhd.’s power unit is seeking to raise 8.4 billion ringgit ($2.5 billion) before year-end, which will increase its outstanding debt to $15 billion, data compiled by Bloomberg show.
The fund, which counts Prime Minister Najib Razak as chairman of its advisory board, attracted criticism last year over fees and profits made by Goldman Sachs Group Inc. for arranging a $3 billion bond. 1MDB is financing projects under Najib’s $444 billion development program, which has pushed Malaysia’s borrowings to 52.8 percent of gross domestic product, near the self-imposed 55 percent limit…………………………………Full Article: Source

1MDB abusing proceeds from US$3 billion bond, says DAP lawmaker

Posted on 18 November 2014 by VRS  |  Email |Print

In another twist to the 1Malaysia Development Bhd (1MDB) saga, a federal lawmaker has claimed that the state sovereign fund is diverting part of the proceeds of the US$3 billion (RM9.6 billion) loan raised by its subsidiary to fund operating expenses and pay off its burgeoning debts.
This, said Tony Pua (DAP - Petaling Jaya Utara) clearly showed that 1MDB was facing difficulties in balancing its cash flow. The sovereign fund’s wholly owned subsidiary, 1MDB Global Investments Limited, had issued a bond to raise US$3 billion in March last year………………………………..Full Article: Source

Bahrain’s Mumtalakat sets initial price guidance for up-to-$600 mln sukuk

Posted on 18 November 2014 by VRS  |  Email |Print

Bahrain sovereign fund Mumtalakat has opened order books after setting initial price guidance for an up-to-$600 million seven-year Islamic bond offering, a document from lead managers said.
The firm has set initial price thoughts in the area of 237.5 basis points over midswaps for the sukuk, which is expected to price on Tuesday, the document showed. A series of meetings with fixed income investors is set to conclude on Monday in London, having been hosted in Asia and the Middle East last week, arranged by BNP Paribas, Deutsche Bank, Mitsubishi UFJ Financial Group and Standard Chartered………………………………..Full Article: Source

Equities to stay dominant in SWF portfolios: Cerulli

Posted on 11 November 2014 by VRS  |  Email |Print

While Asia’s biggest institutions are increasingly investing in alternative assets, sovereign wealth funds’ allocations continue to be dominated by equities, and that situation is likely to continue, said research house Cerulli Associates.
But a shared penchant for equities has not resulted in uniform performance, the firm found in a new report, in which it focuses on Asia’s four largest SWFs: Singapore’s GIC and Temasek, Korea Investment Corporation (KIC), and CIC International, the unit of China Investment Corporation that invests offshore………………………………………..Full Article: Source

Mumtalakat Hires Banks For Potential Dollar Sukuk Issue

Posted on 11 November 2014 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat (BBB from S&P/Fitch) has hired BNP Paribas, Deutsche Bank, MUFG and StanChart to arrange a series of fixed income investor meetings starting on Thursday, Nov. 13.
A Reg S U.S. dollar-denominated sukuk transaction may follow subject to market conditions. Roadshows start in Kuala Lumpur on Thursday before moving to Singapore on Friday, Abu Dhabi and Dubai on Sunday before closing in London on Monday, Nov. 17………………………………………..Full Article: Source

MP presses Putrajaya for answers as 1MBD, banker contradict each other on fees

Posted on 04 November 2014 by VRS  |  Email |Print

Putrajaya must clarify questions surrounding fees paid for 1 Malaysia Development Bhd’s (1MDB) fundraising after the sovereign wealth fund and investment banker Goldman Sachs gave conflicting explanations, a DAP lawmaker said.
Petaling Jaya Utara MP Tony Pua said this was necessary given the billion-ringgit scale involving the allegations on the fees paid, which he previously said was a magnitude more than those usually charged. “The answers provided by Goldman Sachs and 1MDB are in direct conflict with one another. “The conflict is even more frightening given the multi-billion ringgit scale of the exercise,” Pua said………………………………………..Full Article: Source

Bahrain fund Mumtalakat sets up $1 bln bond, sukuk programmes

Posted on 04 November 2014 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat has set up separate bond and sukuk issuance programmes in the Irish stock exchange to raise as much as $1 billion, to help refinance maturing debt next year.
One of the smaller sovereign wealth funds in the Gulf region, Mumtalakat holds stakes in several firms in the kingdom’s non-oil sector, including Bahrain Telecommunications Co and Aluminium Bahrain………………………………………..Full Article: Source

Bahrain Fund Mumtalakat Sets Up $1bn Bond, Sukuk Programmes

Posted on 03 November 2014 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat has set up separate bond and sukuk issuance programmes in the Irish stock exchange to raise as much as $1 billion, to help refinance maturing debt next year.
One of the smaller sovereign wealth funds in the Gulf region, Mumtalakat holds stakes in several firms in the Kingdom’s non-oil sector, including Bahrain Telecommunications Co and Aluminium Bahrain. The multi-currency programmes have been assigned a BBB rating by Fitch ratings, which said proceeds would be used predominantly to refinance upcoming maturities………………………………………..Full Article: Source

ETFs to Play the Largest Wealth Fund’s India Bet

Posted on 31 October 2014 by VRS  |  Email |Print

As the world’s largest wealth fund increases its holdings in India, the average retail investors can also access this emerging market through country-specific exchange traded funds. For example, the PowerShares India Portfolio, iShares MSCI India ET and iShares India 50 ETF all provide access to India’s equities markets.
Norway’s sovereign wealth fund, which holds $860 billion in assets under management, increased holdings “significantly” in India as the recently elected Prime Minister Narendra Modi opens the economy to investments and competition, reports Saleha Mohsin for Bloomberg. The sovereign wealth fund raised its Indian bonds and stock position to 0.9% of its fixed-income and equity portfolio in an attempt to increase its emerging market exposure and generate greater returns………………………………………..Full Article: Source

Malaysia’s 1MDB readies $3bn IPO of power asset

Posted on 31 October 2014 by VRS  |  Email |Print

1Malaysia Development Berhad, a large Malaysian government fund, is paving the way for a $3bn stock market listing of its power assets on the Kuala Lumpur exchange early next year, according to people familiar with the matter.
The planned initial public offering comes amid ongoing scrutiny by opposition politicians in Malaysia of 1MDB, a vast wealth fund formed only five years ago in partnership with interests in Abu Dhabi and Saudi Arabia………………………………………..Full Article: Source

1MDB denies claims over amassed debt, commissions paid

Posted on 31 October 2014 by VRS  |  Email |Print

Sovereign wealth fund 1 Malaysia Development Berhad today denied allegations that it was recklessly building up over RM37 billion in debt and impropriety in the commissions it paid for bond and fund-raising. In a statement on its website, 1MDB said that its ability to raise funds from quality investors showed the confidence vested in the firm, also pointing out that it had never missed any scheduled payments to its borrowers.
“All of our debt is backed by solid assets, and the total value of our assets (RM44.67 billion as at the financial year end of March 2013), comfortably exceeds the value of our total debts (RM37 billion for the same period),” it said in a lengthy statement in reply to concerns over its growing debt, which has attracted the attention of former prime minister Tun Dr Mahathir Mohamad………………………………………..Full Article: Source

1MDB breaks silence over debt and cronyism claims

Posted on 31 October 2014 by VRS  |  Email |Print

Controversial sovereign fund 1Malaysia Development Berhad (1MDB) today sought to clear the air over “unsubstantiated” claims of shadowy dealings, preferential treatment and exorbitant debt brought against it by critics.
In a lengthy statement, 1MDB said it took the allegations about its bonds and debts issuances, commissions, debt levels and overpayment of assets “very seriously”, and intended to present its own side of the story to every claim………………………………………..Full Article: Source

General Electric, Mubadala Joint Venture Plans Debut Bond Sale

Posted on 29 October 2014 by VRS  |  Email |Print

Mubadala GE Capital PJSC, a venture between Abu Dhabi state-owned fund Mubadala Development Co. and General Electric Co. (GE), hired banks to manage its debut bond sale, according to two people familiar with the matter.
Barclays Plc, Citigroup Inc., HSBC Holdings Plc, Natixis SA and First Gulf Bank PJSC will market the sale, the people said, asking not to be identified because the information isn’t public. Mubadala GE Capital will meet fixed-income investors in the Middle East, Europe and the U.S. from Oct. 28 and a dollar-denominated senior unsecured offering may follow, they said………………………………………..Full Article: Source

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

banner
banner
December 2014
M T W T F S S
« Nov    
1234567
891011121314
15161718192021
22232425262728
293031