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Samruk-Kazyna head on forthcoming IPOs and privatization plans

Posted on 16 April 2014 by VRS  |  Email |Print

Umirzak Shukeyev, Head of Samruk-Kazyna Sovereign Wealth Fund, announced a list of companies to run IPOs in 2014-2016 and unveiled plans to privatize some state-owned companies. “In 2014 plans are there to float 10% minus one share in Kazakhstan Electricity Grid Operating Company (KEGOC) and 75% in Mangistau Distribution Company. 100% in the Atyrau thermal power plant, 75.6% in Temirzhol Zhondeu, 51% in Temirzhol Energo, 49% in Semser Security; 51% in Lokomotiv-2030, 50% in Zhambyl regional power plant will be offered through auctions”, Shukeyev said.
According to Shukeyev, 10% minus one share in Samruk-Energo, up to 49% in KazTransGasAimak and KazTransGas-Almaty, 49% in Transtelecom, and 10% minus one share in KazTemirTrans will be floated in 2015. “Shares in 14 companies, including Eurasia-Air and KazMortransFlot owned by KMG will be offered through auctions”, he elaborated………………………………………..Full Article: Source

$1.3 billion to finance Toxic Assets Fund of Kazakhstan

Posted on 16 April 2014 by VRS  |  Email |Print

$1.3 billion will be allocated out of the National Oil Fund to finance the Toxic Assets Fund, the country’s Minister of Economic Affairs Yerbolat Dossayev told a briefing April 14. The vehicle will be buying out toxic assets from the country’s banks. Regulating rules will be formulated by July 1, 2014.
The toxic assets fund under the National Bank of Kazakhstan was launched in April 2012. Mid-February 2014 at the extended government sitting Kazakhstan’s President Nursultan Nazarbayev commissioned banks’ heads to reduce the share of NPLs “in any possible ways” to 15% of their portfolio by 2015 and further to 10% by 2016………………………………………..Full Article: Source

Angolan wealth fund buys fixed income but no project investments yet

Posted on 11 April 2014 by VRS  |  Email |Print

Angola’s $5 billion sovereign wealth fund, sub-Saharan Africa’s second-biggest, has this year made its first investments by buying fixed income securities but is yet to start financing infrastructure projects, its chairman said.
Africa’s biggest oil producing nation after Nigeria set up the FSDEA fund in 2012 to invest foreign exchange reserves and finance economic diversification and infrastructure but it has been criticised for making a slow start………………………………………..Full Article: Source

Angolan wealth fund buys fixed income but no project investments yet

Posted on 10 April 2014 by VRS  |  Email |Print

Angola’s $5 billion sovereign wealth fund, sub-Saharan Africa’s second-biggest, has this year made its first investments by buying fixed income securities but is yet to start financing infrastructure projects, its chairman said.
Africa’s biggest oil producing nation after Nigeria set up the FSDEA fund in 2012 to invest foreign exchange reserves and finance economic diversification and infrastructure but it has been criticized for making a slow start………………………………………..Full Article: Source

Kazakhstan’s state wealth fund plans sell-offs, debt issues

Posted on 04 April 2014 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund has drawn up a privatisation programme, planning to sell off state-controlled assets in the oil and gas, nuclear and railway industries worth around $10 billion by 2020.
Companies within Samruk-Kazyna also plan to borrow about $8 billion on domestic and foreign markets in the next two years to help fund their projects, the fund’s Financial Director Nurlan Rakhmetov told Reuters in an interview………………………………….Full Article: Source

China Huiyuan to issue $150 mln bonds to Temasek

Posted on 27 March 2014 by VRS  |  Email |Print

China Huiyuan Juice Group Ltd will issue $150 million worth of convertible bonds to a unit of Singapore state investor Temasek Holdings (Pvt) Ltd, as China’s top pure fruit juice producer aims to expand its investor base.

Huiyuan said it will issue the bonds due 2019 to Temasek’s Baytree Investments (Mauritius) Pte Ltd. Temasek will indirectly hold 7.68 percent of the enlarged share capital of Huiyuan on full conversion of the bonds………………………………..Full Article: Source

Bahrain fund Mumtalakat plans no bonds in 2014, to pay off small loan

Posted on 19 March 2014 by VRS  |  Email |Print

Bahraini sovereign fund Mumtalakat has no current plans to tap the debt capital markets in 2014 and will pay off a small loan facility due later in the year, its chief executive said on Tuesday.
One of the smaller sovereign wealth funds in the Gulf region, Mumtalakat had $7.1 billion of assets under management at the end of September. It holds stakes in 40 firms in the kingdom’s non-oil sector, including Bahrain Telecommunications Co (Batelco) and Aluminium Bahrain (Alba)………………………………………..Full Article: Source

Azerbaijan’s successful debut sovereign Eurobond placement shows investors’ confidence

Posted on 19 March 2014 by VRS  |  Email |Print

Azerbaijan’s successful debut sovereign Eurobond placement amid the market situation in the region reflects investors’ confidence in the balanced management of oil revenues, head of the IMF mission on Article IV of the Articles of Agreement of the International Monetary Fund Raja Almarzoqi said in Baku on March 17.
“The aim is to consolidate the budget, that is, to reduce dependence on oil revenues by further decline in transfers from the State Oil Fund of Azerbaijan (SOFAZ),” he said. “The state budget revenue generated by the private sector must increase. All this will create a strong buffer for the national economy in case of oil price decrease.”……………………………………….Full Article: Source

U.S. investors buy 47 pct of Azerbaijani bonds

Posted on 14 March 2014 by VRS  |  Email |Print

Azerbaijan raised $1.25bn in its first international bond sale on March 10, and investors from the U.S. purchased 47 percent of Azerbaijan’s sovereign Eurobonds. The news was announced by Azerbaijani Finance Ministry on March 12.
The strong sovereign balance sheet, with sovereign assets held in Azerbaijan’s state oil fund SOFAZ, reached 49 percent of GDP at the end of 2013, the report said. The 2014 budget calls for a reduction in reliance on oil revenues in the form of transfers from SOFAZ………………………………………..Full Article: Source

Taiwan sovereign fund would help asset revitalization

Posted on 10 March 2014 by VRS  |  Email |Print

An SWF can give fresh impetus to the local economy and increase the nation’s influence on the global economy and finance. There are quite a few examples of how an SWF can work to raise a nation’s political and economic clout and boost national income. There are more than 30 such funds in the world today.
Besides the more famous ones in Brunei, Kuwait, Norway and Singapore, mainland China in September 2007 used some of its foreign exchange reserves to set up China Investment Corp. France also set up an SWF in the wake of the 2008 financial crisis out of considerations of national economic security………………………………………..Full Article: Source

FG secures fresh $350mln Eurobond facility for NBET

Posted on 10 March 2014 by VRS  |  Email |Print

As part of efforts to further strengthen the Nigerian Bulk Electricity Trading Plc (NBET), otherwise known as the Bulk Trader, the federal government has secured a fresh $350 million Eurobond facility to boost its operations.
Okonjo-Iweala, who is Chairman of the Board of NBET, informed that the $350 million facility has been given to the Sovereign Wealth Fund (SWF) to manage on behalf of the bulk trader. According to her, the decision was informed by the need to manage the facility in a way that the federal government can repay the loan by investing the money………………………………………..Full Article: Source

GPIF needs wage-based return goal, less bond focus: Panel

Posted on 07 March 2014 by VRS  |  Email |Print

The world’s largest pension fund should look to beat wage growth when setting investment goals and no longer needs to focus on domestic bonds given quickening inflation, a Japanese government advisory panel said.
The 128.6 trillion yen ($1.26 trillion) Government Pension Investment Fund should seek yearly returns of 1.7 percent plus the rate of pay increases for workers, according to a draft report from the committee formed to help the health ministry decide on economic assumptions for investment targets………………………………………..Full Article: Source

Consider future fund to price qantas: Mark Carnegie

Posted on 03 March 2014 by VRS  |  Email |Print

Former Qantas shareholder activist Mark Carnegie has called on the ­government to consider the Future Fund to price any debt guarantee it considers for the ailing airline and warned against propping up companies at below ­market rates.
In an interview with the Nine Network’s Financial Review Sunday , Mr Carnegie, who was part of a ­consortium with former Qantas executives Geoff Dixon and Peter Gregg that tried to shake up the airline’s strategy a year ago, said the debate needed to be shifted beyond whether the government props up the national carrier………………………………………..Full Article: Source

1MDB to sell $729mln sukuk

Posted on 19 February 2014 by VRS  |  Email |Print

Malaysian sovereign wealth fund 1Malaysia Development Bhd (1MDB) plans to sell 2.4bn ringgit ($728.49mn) worth of Islamic bonds to finance the relocation of defence units from land marked for government development project Bandar Malaysia.
Bandar Malaysia Sdn Bhd, a unit of 1MDB Real Estate Sdn Bhd, said in a statement to the central bank yesterday that it will issue one- to 10-year sukuk by private placement to unnamed buyers. AmInvestment Bank Bhd is advising on the sale of the sukuk, which will not be rated by credit-rating firms………………………………………..Full Article: Source

Future Fund to boost real assets, slice alternatives

Posted on 04 February 2014 by VRS  |  Email |Print

The $96.5 billion Australian sovereign wealth fund has outlined its mission to enlarge the “tangible” allocation in its portfolio, cutting exposure to listed equities, cash, and alternatives.
In its portfolio round-up of 2013, the Future Fund’s executive outlined plans to turn its current allocation into a “mature portfolio”. In a bar chart, it showed this transition would mean a reduction to various previously core asset classes and an increase to just real assets………………………………………..Full Article: Source

Tender for energy plant hits snag: 1MDB

Posted on 03 February 2014 by VRS  |  Email |Print

A power plant tender that sovereign wealth fund 1 Malaysia Development Bhd (1MDB) is keen to win before a US$2 billion IPO of its power assets has been delayed after bids came in too close to call, government sources said.
1MDB, chaired by Prime Minister Najib Razak, has begun the process of choosing underwriters for what is likely to be one of Southeast Asia’s largest initial public offerings of the year. It is expected to bundle 15 power plants it bought over a two-year shopping spree in a bid to capitalise on growing electricity demand in Malaysia, the Middle East and South Asia, financial sources say………………………………………..Full Article: Source

Uncertainties in power tender cast shadow on 1MDB IPO

Posted on 31 January 2014 by VRS  |  Email |Print

A power plant tender that sovereign wealth fund 1Malaysia Development Bhd (1MDB) is keen to win before a US$2bil (RM6.69bil) initial public offering (IPO) of its power assets has been delayed after bids came in too close to call, Government sources said.
1MDB has begun the process of choosing underwriters for what is likely to be one of South-East Asia’s largest IPOs of the year. It was expected to bundle 15 power plants it bought over a two-year shopping spree in a bid to a capitalise on growing electricity demand in Malaysia, the Middle East and South Asia, financial sources said………………………………………..Full Article: Source

In 2013 the Oil Fund of Azerbaijan allocated AZN 372.6 million for the construction of “STAR” Oil Refinery Complex

Posted on 29 January 2014 by VRS  |  Email |Print

In 2013 the State Oil Fund of Azerbaijan (SOFAZ) allocated 3.02% of its expenditures for the construction of “STAR” Oil Refinery Complex in Turkey. According to the Fund, its allocations for this complex constructed by the SOCAR (the State Oil Company of Azerbaijan) made up AZN 372.6 million last year.
Budget revenues of the Oil Fund in 2013 reached AZN 13,600.5 million, while budget expenditures constituted AZN 12,302.7 million. As a result, the SOFAZ budget was executed with the surplus of AZN 1,297.8 million Over the last year the assets of the Oil Fund grew from $34129.4 million up to $35877.5 million………………………………………..Full Article: Source

Khazanah’s asset portfolio surges to record with KLCI’s rally

Posted on 21 January 2014 by VRS  |  Email |Print

Khazanah Nasional Bhd., Malaysia’s state investment company, said the value of its holdings climbed to a record last year as local share prices surged. The net asset value of Khazanah’s investments rose 19 percent to 103.5 billion ringgit ($31 billion) at the end of 2013 from 86.9 billion ringgit a year earlier, the Kuala Lumpur-based fund said.
It outperformed an 11 percent gain in the benchmark FTSE Bursa Malaysia KLCI Index, which closed at a record on Dec. 30………………………………………..Full Article: Source

Malaysia fund invites IPO pitches

Posted on 16 January 2014 by VRS  |  Email |Print

Malaysian sovereign-wealth fund 1Malaysia Development Bhd. has invited banks to pitch for a mandate to advise it on an over US$1 billion initial public offering, in what is tipped to be one of the largest such deals in Southeast Asia so far this year.
The banks have been asked to submit their bids for a role on the deal by the end of this month, people with knowledge of the process said Wednesday, adding that the planned offering is slated to take place in the first half of this year. The sovereign-wealth fund plans to list its energy assets, including those it bought in a controversial debt-fueled acquisition a couple of years ago, the people said………………………………………..Full Article: Source

Temasek may offer bonds to retail investors

Posted on 08 January 2014 by VRS  |  Email |Print

Temasek Holdings, Singapore state investor, is examining ways of selling its highly sought-after bonds to Singapore retail investors, the investment agency said on Tuesday.
Stephen Forshaw, Temasek’s managing director of corporate affairs, said it is looking at how to make it “practical and efficient” for the firm to offer bonds to such investors………………………………………..Full Article: Source

Norway to refrain from fx buying for wealth fund in January

Posted on 02 January 2014 by VRS  |  Email |Print

Norway’s central bank will not sell Norwegian crowns in January to buy foreign exchange for the country’s sovereign wealth fund, the bank said on Monday on its page, extending its December practice.
Last month the central bank said it would refrain from buying foreign exchange that would have enabled the fund to invest money in foreign stocks and bonds. The fund invests Norway’s revenues from oil and gas production for future generations. It is the world’s largest sovereign wealth fund………………………………………..Full Article: Source

Sovereign wealth funds shun Indian tax-free bonds

Posted on 30 December 2013 by VRS  |  Email |Print

A volatile rupee, the lack of any specific tax advantage and unattractive interest rates have ensured that not even one issue has been subscribed by these wealth funds. Sovereign wealth funds have shunned tax-free bonds issued by state-run Indian companies and financial institutions despite the government’s attempts to woo these foreign funds in the numerous overseas road shows by finance minister P. Chidambaram.
A volatile rupee, the lack of any specific tax advantage and unattractive interest rates have ensured that not even one issue has been subscribed by these wealth funds, according to officials from these financial institutions and merchant bankers………………………………………..Full Article: Source

1MDB mulls RM1.5bln Islamic bond issue

Posted on 20 December 2013 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB), the country’s sovereign wealth fund, is considering selling RM1.5 billion sukuk, according to two people with knowledge of the plan. The proceeds will be used to finance the relocation of an air force base in Sungai Besi, here, they said.
1MDB agreed to take over the redevelopment of the site from the government in June 2011 on condition it would pay to build a new military air base in Negri Sembilan, according to a June statement………………………………………..Full Article: Source

Putin bets $15 bln to capture junk-rated Ukraine Vassal

Posted on 20 December 2013 by VRS  |  Email |Print

Vladimir Putin got what he wanted by anchoring Ukraine to Russia and pushing the European Union back from his borders. The cost is yet to be tallied. The Russian leader is lending $15 billion to a junk-rated borrower and offering a 33 percent gas-price cut on a gamble that Ukraine will become a permanent ally and President Viktor Yanukovych will hold off a surging protest movement in the 2015 election.
The prize is a crucial step in his crusade to halt what he sees as the West’s relentless encroachment on Russian interests since the end of the Cold War………………………………………..Full Article: Source

Malaysia 1MDB said to weigh 1.5 bln ringgit Islamic bond

Posted on 19 December 2013 by VRS  |  Email |Print

1Malaysia Development Bhd., the sovereign wealth fund whose debt tripled in two years, is considering selling 1.5 billion ringgit ($461 million) of sukuk, according to two people with knowledge of the plan.
The proceeds will be used to finance the relocation of an air-force base in Sungai Besi in Kuala Lumpur, said the people who asked not to be named because the information is private. 1MDB agreed to take over the redevelopment of the site from the government in June 2011 on condition it would pay to build a new military air base in the state of Negri Sembilan, located south of the capital, according to a June statement………………………………………..Full Article: Source

Russia plans to use other sources along with National Welfare Fund to buy Ukraine’s Eurobonds

Posted on 18 December 2013 by VRS  |  Email |Print

The Russian Finance Ministry plans to use other sources along with the National Welfare Fund to buy Ukraine’s Eurobonds in 2014, Russian Finance Minister Anton Siluanov told reporters on Tuesday.
“This can be not only the resources from the National Welfare Fund. We will consider other resources, proceeding from the variability of our resources in the next year,” he said, noting that the sum of 15 billion dollars will be confirmed within 18 months and the resources from the welfare fund will make a larger part of it……………………………………….Full Article: Source

Singapore’s sovereign wealth fund GIC subscribes to Green Dragon Gas bond

Posted on 17 December 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has fully subscribed to the first tranche of US$35 million of the Green Dragon Gas (GDG) convertible bond issue. GDG is an independent companies involved in the production and sale of CBM gas in China.
The bond is unsecured with a 7 per cent coupon, and is due in Dec 2015, convertible into ordinary shares at a conversion price of US$6.06 per share. Green Dragon Gas plans to use the net proceeds to launch next year’s drilling plan, and for working capital………………………………………..Full Article: Source

Temasek redeems S$500mln zero coupon exchangeable bonds due 2013

Posted on 16 December 2013 by VRS  |  Email |Print

Temasek Holdings has on Monday redeemed S$500 million zero coupon guaranteed exchangeable bonds due 2013. They were redeemed through its wholly-owned subsidiary, Temasek Financial (III) Private Limited (TFin-III).
L&F HK was a zero coupon exchangeable bond issued by TFin-III at par in December 2011, with a maturity date of Dec 14, 2013………………………………………..Full Article: Source

China sovereign fund Huijin gets access to trade banks’ bonds

Posted on 10 December 2013 by VRS  |  Email |Print

Central Huijin Investment Ltd., the sovereign investor that holds stakes in China’s biggest banks, received approval to trade on the interbank bond market, giving the government another way to support the nation’s lenders.
The authorization was granted by the Shanghai office of the People’s Bank of China, according to a statement posted on Chinamoney.com.cn, a website of the China Foreign Exchange Trade System. Huijin owns shares in banks including Industrial & Commerical Bank of China Ltd., the world’s most profitable. Huijin didn’t immediately reply to an e-mail seeking comment………………………………………..Full Article: Source

Singapore bets on Blackstone’s Hilton IPO after 2010 debt restructuring

Posted on 10 December 2013 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC Private Ltd pumped equity into Blackstone Group-owned Hilton Worldwide when the company needed to restructure its debt in the credit crunch that ensued after the hotel chain’s 2007 leveraged buyout. Now, GIC is prepared to hold onto a large chunk of Hilton Worldwide shares as the company moves towards an initial public offering.
In contrast to GIC, other providers of emergency relief to Hilton during its debt restructuring will be cashing out of their holdings in the company’s IPO. GIC is poised to be a 5% stakeholder in Hilton when the company lists its shares, in what could be a $2.4 billion IPO that would be the biggest in the U.S. hotel industry………………………………………..Full Article: Source

Air Astana has no immediate plans of floating shares within People’s IPO Program

Posted on 02 December 2013 by VRS  |  Email |Print

Air Astana national airline can only participate in the People’s IPO program if the government’s stake in the company is increased, Newskaz.ru reports, citing Nurzhan Baidauletov, Managing Director of the Samruk-Kazyna Sovereign Wealth Fund as saying November 28.
At the moment Samruk-Kazyna holds 51% in the airline, with the rest of the shares belonging to UK’s BAE SYSTEMS. “The Government’s stake (owned through Samruk-Kazyna) will not be diluted; no part of the stake will be offered for the People’s IPO. However, if it is somehow increased, we will consider floating shares”, Mr. Baidauletov said………………………………Full Article: Source

Future Fund may invest in NZ assets

Posted on 12 November 2013 by VRS  |  Email |Print

Superannuation giants including the Future Fund have been lining up to buy several billion dollars’ worth of New Zealand regional infrastructure assets such as ports and water-care services, according to investment bankers across the Tasman.
The report comes as local groups including Asciano circle Australian infrastructure assets, such as the Port of Newcastle, that are up for grabs following Transurban’s move on the Cross City Tunnel………………………………………..Full Article: Source

Singapore fund to sell US$350mln of Glencore convertible bonds

Posted on 08 November 2013 by VRS  |  Email |Print

Singaporean sovereign wealth fund GIC is selling US$350 million of bonds convertible into shares in Glencore Xstrata, bookrunner Bank of America Merrill Lynch said on Wednesday. The bonds, which pay an annual interest rate of 5 per cent and due to mature Dec 31, 2014, are being sold via an accelerated offering expected to be completed on Nov 7.
The bonds are being offered at between 117 per cent and 118.124 per cent of their par value, according to a person familiar with the matter, meaning GIC could raise between US$409.5 million and US$413.4 million from the sale………………………………………..Full Article: Source

Singapore fund to sell $350 mln of Glencore convertible bonds

Posted on 07 November 2013 by VRS  |  Email |Print

Singaporean sovereign wealth fund GIC is selling $350 million of bonds convertible into shares in Glencore Xstrata, bookrunner Bank of America Merrill Lynch said on Wednesday.
The bonds, which pay an annual interest rate of 5 percent and due to mature Dec. 31, 2014, are being sold via an accelerated offering expected to be completed on Nov. 7………………………………………..Full Article: Source

Qatari fund invests in BlackBerry debt offer

Posted on 07 November 2013 by VRS  |  Email |Print

Qatar Holding LLC is among a handful of investors that have put money into BlackBerry’s $1 billion convertible debt offering, a source familiar with the financing plan said on Wednesday. The Qatari sovereign wealth fund bought as much as $200 million of the offering, in which Fairfax Financial Holdings Ltd, BlackBerry Ltd’s largest shareholder, has itself put in $250 million.
The embattled smartphone maker abandoned plans on Monday to sell itself and replaced its chief executive, sparking a 16 percent drop in its share price. It said it would raise $1 billion by issuing convertible notes to a small group of long-term investors, including Fairfax, which is run by investment guru Prem Watsa………………………………………..Full Article: Source

China food producer Shuanghui, partly owned by Temasek, hires banks for IPO

Posted on 06 November 2013 by VRS  |  Email |Print

China’s Shuanghui International Holdings, which bought US pork producer Smithfield Foods this year, has hired six banks for a Hong Kong IPO, seeking to raise up to US$6 billion (S$7.5 billion) in what is set to be Asia’s Pacific ex-Japan’s largest offering in about four years.
Shuanghui, which counts Goldman Sachs, Singapore state investor Temasek Holdings and private equity firm New Horizons as its shareholders, owns Shenzhen-listed Henan Shuanghui Investment & Development Co, China’s largest meat processing company………………………………………..Full Article: Source

Norwegian mega-fund helped finance Empire State Realty Trust’s public offering

Posted on 01 November 2013 by VRS  |  Email |Print

Norway’s sovereign wealth fund participated in the $929.5 million IPO of Empire State Realty Trust Inc.,, which began trading in New York earlier this month.
While the fund did not explicitly confirm its involvement, a source with knowledge of its activities told Bloomberg that it was one of the top 10 stock buyers in the IPO process. The fund refused to explicitly confirm its involvement, but its chief executive implied as much during an interview in Oslo on Oct. 25…………………………….Full Article: Source

Credit Suisse exchanged $4.5 bln of Qatar notes to CoCos

Posted on 01 November 2013 by VRS  |  Email |Print

Credit Suisse Group AG (CSGN), Switzerland’s second-biggest bank, said it exchanged $4.5 billion of notes held by the Qatar Investment Authority into debt that qualifies as capital under stricter rules.
The Zurich-based bank and Qatari sovereign wealth fund swapped the Tier 1 capital notes for contingent-convertible bonds on Oct. 23 in a transaction approved by Swiss financial regulator Finma, Credit Suisse said…………………………….Full Article: Source

Temasek-backed Clifford Capital prices maiden bond issue

Posted on 01 November 2013 by VRS  |  Email |Print

Clifford Capital has priced its maiden bond issue - US$300 million five-year notes - the first-ever U.S. dollar bond issue guaranteed by the Singapore government. As such the notes achieved tight pricing and were hotly sought after, said Jason Khoo, HSBC head of debt capital markets, South East Asia.
Clifford Capital was set up last year as a project finance company that would plug funding gaps for large, long-term, cross-border projects. Temasek Holdings is Clifford Capital’s biggest shareholder with a 40.5 per cent stake…………………………….Full Article: Source

Singapore’s Government Investment Corporation debt play for Northpoint

Posted on 31 October 2013 by VRS  |  Email |Print

Singapore’s Government Investment Corporation is looking at making a major debt play in Australia that could see it provide finance to developer Terry Agnew secured against the landmark $300 million Northpoint complex that dominates the North Sydney skyline.
The debt play could give the Singaporean giant, which has one of Australia’s largest direct property portfolios as well as stakes in listed trusts, further exposure to a local property debt as it has already invested $200m in the sector through Challenger……………………………..Full Article: Source

Alrosa public offering backed by Russian SWF

Posted on 29 October 2013 by VRS  |  Email |Print

Alrosa, the Russian diamond monopoly, has raised $1.3bn in a Moscow public offering as the Russian government pushes forward with its $15bn privatisation programme. The offering was backed by US funds including Oppenheimer and Lazard, as well as the Russian Direct Investment Fund, Russia’s $10bn sovereign wealth fund.
Olga Dergunova, director of Russia’s Federal Property Management Agency defended the involvement of state-backed RDIF in a privatisation deal. RDIF helped “in attracting investors to come to the book . . . The name [RDIF] is really attractive,” Ms Dergunova said. She added that RDIF had bought a relatively small portion of the offering. According to the fund, it bought the stake alongside “a consortium of foreign institutional investors from North America, Middle East, Western and Northern Europe and Southeast Asia”………………………………………..Full Article: Source

India to approach sovereign wealth funds for debt investments

Posted on 25 October 2013 by VRS  |  Email |Print

India will approach sovereign wealth funds to invest in government securities as it draws up a plan to counter outflows when the U.S. Federal Reserve starts tapering its stimulus.
The government plans to meet officials of sovereign wealth funds based in Australia and West Asia, the official, who asked not to be identified before a public announcement, told reporters. The investment will be sought in the underutilized portion of the $5 billion reserved for such investors………………………………………..Full Article: Source

India Govt to woo sovereign funds to invest in G-sec

Posted on 25 October 2013 by VRS  |  Email |Print

Sovereign wealth funds would be approached to invest in government securities. This is one of the strategies to prepare India for the effects of the US Fed withdrawing the quantitative easing in that country. Finance minister P Chidambaram on Thursday asked financial sector regulators to draw up plans to counter outflows when the US begins to taper the quantitative easing early next year.
A finance ministry official said the government plans meet to sovereign wealth fund managers based in Australia and West Asia. The investment would be sought in the underutilised portion of the $5 billion reserved for such investors………………………………………..Full Article: Source

Khazanah issues $482 mln Islamic bond exchangeable to IHH shares

Posted on 18 October 2013 by VRS  |  Email |Print

Malaysian state investor Khazanah Nasional Bhd said on Friday it has issued S$600 million ($482.14 million) in Singapore dollar-denominated Islamic bonds, or sukuk, that can be exchanged for shares in IHH Healthcare Bhd.
The issuance, which can be exchanged into IHH shares at a premium of 10 to 17 percent over the reference share price of 4.19 ringgit ($1.33), as Khazanah diversifies on its fund-raising strategy………………………………………..Full Article: Source

Invesco study suggests more sovereign investors will allocate to local private enterprises and to alternatives

Posted on 11 October 2013 by VRS  |  Email |Print

Benedicte Gravrand, Opalesque Geneva: Invesco, a global investment advisor, recently released its first Invesco Global Sovereign Asset Management Study, an analysis of the investment behaviour of sovereign investors across the globe.
Invesco found that an increased allocation to alternatives is indeed a widespread trend; and that “the biggest growth story among global sovereigns today is an increase in a so-called ‘public-private partnership’ investment approach.” This is when sovereigns seek direct strategic investment in their country’s private companies to support GDP, job creation and skills transfer. Currently global sovereign flows represent more than $6tln, Invesco notes………………………………………..Full Article: Source

Royal Mail: Sovereign funds to get shares

Posted on 11 October 2013 by VRS  |  Email |Print

A clutch of the world’s most powerful sovereign wealth funds are expected to be allocated millions of pounds-worth of shares in Royal Mail even as thousands of British investors are frozen out of the privatisation.
Sky News can reveal that state-backed entities from Kuwait and Singapore are among those which ordered shares worth hundreds of millions of pounds as part of the postal operator’s sell-off. The Kuwait Investment Office, the City-based branch of the Gulf state’s sovereign fund, and the Government Investment Corporation (GIC) of Singapore are expected to have their share applications scaled back because of the huge demand for Royal Mail stock………………………………………..Full Article: Source

China’s CIC to convert some debt into stakes in Bumi mining group

Posted on 10 October 2013 by VRS  |  Email |Print

Indonesia’s PT Bumi Resources said on Wednesday China’s sovereign wealth fund, China Investment Corp (CIC), has agreed to convert part of an outstanding $1.3 billion loan into stakes in the miner’s PT Bumi Resources Minerals unit, its coal mines and a small stake in Bumi Resources itself.
“PT Bumi Resources Tbk announces that it has entered into an agreement to settle $1.3 billion principal amount of its remaining debt with China Investment Corp,” it said in a statement………………………………………..Full Article: Source

Kazakh-owned Alliance Bank bonds tumble on fear of second restructuring

Posted on 09 October 2013 by VRS  |  Email |Print

Bonds in Kazakhstan’s Alliance Bank tumbled almost 10 cents on the dollar on Tuesday to record lows on fears the lender, owned by the country’s sovereign wealth fund, is headed for its second debt restructuring in three years.
Alliance, owned 67 percent by sovereign fund Samruk Kazyna, was one of several banks in oil-rich Kazakhstan to default on debt after the 2008 financial crisis, and another Samruk-owned bank, BTA, has already restructured a bond it issued after its first 2009 default………………………………………..Full Article: Source

Global bond markets may need three more years to normalize: NZ wealth fund

Posted on 04 October 2013 by VRS  |  Email |Print

Global equity prices outside Europe are approaching true value but fixed income yields, although rising, could take another three years to reach a “normal” level, the head of New Zealand’s sovereign wealth fund said on Thursday.
Wealth funds need to diversify more to reduce risk, and investments in infrastructure are the biggest opportunity in the market, Adrian Orr, the chief executive of the NZ$23 billion ($19.1 billion) New Zealand Superannuation Fund, told Reuters………………………………………..Full Article: Source

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