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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

Nigeria SWF makes maiden investment

Posted on 03 October 2013 by VRS  |  Email |Print

Nigeria’s sovereign wealth fund has made its first ever investment, handing over $200m to UBS, Credit Suisse and Goldman Sachs to manage a fixed income portfolio. The first investment, even if relatively small, adds Nigeria to the small cadre of commodity-rich countries that over the past decade have become one of the most powerful forces in global financial markets through their sovereign wealth funds.
Uche Orji, chief executive of the $1bn Nigerian Sovereign Investment Authority (NSIA), told the Financial Times the fund gave UBS $50m last week to invest in US Treasuries. A further $150m is being transferred this week to Credit Suisse and Goldman Sachs to build a US corporate bond portfolio………………………………………..Full Article: Source

Norway cbank to sell NOK 100 mln a day for oil fund in Oct

Posted on 01 October 2013 by VRS  |  Email |Print

Norway’s central bank will sell 100 million crowns ($16.67 million) a day in October to buy foreign currency for the country’s $780 billion sovereign wealth fund, the same amount it sold in September, the bank on its page on Monday.
The fund, the world’s biggest sovereign wealth fund, invests Norway’s revenues from oil and gas production for future generations, buying bonds, stocks and real estate around the world………………………………………..Full Article: Source

Norway oil fund chief warns on bonds with returns close to zero

Posted on 27 September 2013 by VRS  |  Email |Print

The head of Norway’s sovereign wealth fund, the world’s biggest, said the bond market will offer scant returns as the investor looks to expand into other asset classes to safeguard the nation’s wealth.
“Returns in the bond markets are low and look to remain so for a good while ahead,” Yngve Slyngstad, chief executive officer of the $780 billion Government Pension Fund Global, said today in a speech in Bergen published on the central bank’s website. “The safest investment alternative gives today a return after inflation close to zero.”……………………………………….Full Article: Source

Debt-wracked nations could learn from Norway, prime minister says

Posted on 27 September 2013 by VRS  |  Email |Print

Debt-laden European nations, the United States, and resource-rich developing countries could all learn from Norway’s tight-fisted spending habits and oil wealth management, the Scandinavian nation’s outgoing prime minister Jens Stoltenberg said on Wednesday.
Stoltenberg said Norway’s sovereign wealth fund - a now $700 billion fund with investments in bonds, more than 7,000 companies, and some real estate - was the main reason Norway sidestepped the “curse of oil” that has plagued many other resource-rich nations particularly in the developing world………………………………………..Full Article: Source

Azeri State Oil Fund to boost gold holdings by third next year

Posted on 27 September 2013 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund plans to increase its gold holdings by a third next year as the largest crude producer in the former Soviet Union after Russia and Kazakhstan seeks to diversify its reserves.
The fund, known as Sofaz, will buy 10 metric tons of bullion in 2014 after reaching its previous target of 30 tons by the end of this year, Executive Director Shahmar Movsumov told reporters today in Baku, the Azeri capital………………………………………..Full Article: Source

Azerbaijan’s Oil Fund to buy up to 40 tons of gold until 2015

Posted on 27 September 2013 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has unveiled its plans on investment in tangible assets - physical gold and real estate. SOFAZ executive director Shahmar Movsumov says that since the beginning of 2013 the Fund has bought 26 tons of gold and more than half of this amount has already been delivered to the country.
“This year we are going to buy 30 tons of gold and another 10 tons at current prices next year,” Movsumov said. As a result, for 2013-14 the Fund will purchase 40 tons of gold………………………………………..Full Article: Source

CIC unit converts bonds for 12.5pct stake in Uralkali

Posted on 26 September 2013 by VRS  |  Email |Print

Chengdong Investment Corporation, a unit of mainland sovereign wealth fund China Investment Corporation (CIC), has converted its Uralkali bonds into a total of 12.5% ordinary shares, becoming the Russian potash producer’s second largest shareholder, Uralkali says in a statement. The bonds were purchased in November last year from Wadge Holdings which is beneficially owned by Uralkali’s major shareholders Kerimov, Galchev and Skurov.
Upon the completion of the transaction, Suleyman Kerimov Foundation remains the largest single shareholder of Uralkali with a 21.75% stake, Galchev the third with 7% shares and Skurov the fourth with 4.8% shares. The remaining 53.95% shares are free floated………………………………………..Full Article: Source

CIC converts Uralkali bonds into shares

Posted on 25 September 2013 by VRS  |  Email |Print

Russian potash producer Uralkali said Tuesday that China’s sovereign wealth fund has acquired a 12.5% stake in the company by exercising an option on convertible bonds it bought late last year. The bonds had been issued by a special purpose vehicle called Wadge Holdings Ltd., which was owned by Uralkali’s primary shareholder Suleiman Kerimov and his partners Filaret Galtchev and Anatoly Skurov.
The 12.5% stake is now held by the Chengdong Investment Corp., a subsidiary of the China Investment Corp. The bonds had been due to mature in 2014. CIC’s stake is worth about 64.5 billion rubles ($2.03 billion) based on the current share price of RUB174.75 on the Moscow Exchange………………………………………..Full Article: Source

Khazanah rallies for Westports Holdings Bhd IPO

Posted on 23 September 2013 by VRS  |  Email |Print

Westports Holdings Bhd could be the biggest initial public offering in Malaysia this year – targeting US$ 700 million. The deal was initiated years ago by Malaysian sovereign wealth fund, Khazanah Nasional, which aims to move state-linked companies toward stock market capitalization.
The sovereign wealth fund owns a 7.52% stake through Lankayan Ventures Sdn Berhad, a holding subsidiary. The Malaysian port operator is in charge of one of Asia’s busiest shipping terminals at Port Klang………………………………….Full Article: Source

Nigeria sovereign wealth fund invests $200mln in US bonds

Posted on 18 September 2013 by VRS  |  Email |Print

The Nigerian Sovereign Wealth Fund (SWF) has invested $200 million, via its management partners, in the US bond market. The $200 million is the 20 percent stabilization fund set aside from the $1 billion wealth fund, to be used for foreign financial market investment. This led to the appointed UBS, Credit Suisse and Goldman Sachs as managers of the fund.
According to the chief executive of the Nigerian Sovereign Investment Authority, Uche Orji, $50 million of the fund was allocated to UBS last week for asset acquisitions in the US Treasuries, while the $150 million left will be handed over to Credit Suisse and Goldman Sachs this week for the development of a US bond portfolio………………………………………..Full Article: Source

Norway oil minister proposes carving out real-estate fund from $750 bln oil fund

Posted on 04 September 2013 by VRS  |  Email |Print

Less than a week before national elections, Norway’s oil minister is proposing a significant shift for the nation’s $750 billion oil-wealth fund, suggesting a separate real-estate fund with increased exposure to U.S. property be carved out amid expectations of low returns in the global bond market.
Ola Borten Moe, minister of petroleum and energy and a deputy leader of the nation’s Center Party, said that he is proposing taking 10% of the sovereign-wealth……………………………………….Full Article: Source

Khazanah Nasional’s RM10bln Islamic notes affirmed at AAA

Posted on 27 August 2013 by VRS  |  Email |Print

Khazanah Nasional Bhd has proposed to issue RM10bil multi-currency Islamic securities programme via Danga Capital Bhd, which is a trust-owned special purpose vehicle. RAM Rating Services Bhd had on Monday reaffirmed the AAA rating of Danga Capital debt notes. It said the long-term rating has a stable outlook.
Danga, a trust-owned special purpose vehicle, had been incorporated for the sole purpose of facilitating the issuance of the Islamic securities programme (ISP)………………………………………..Full Article: Source

Mumtalakat sukuk rating reaffirmed

Posted on 21 August 2013 by VRS  |  Email |Print

RAM Rating Services Berhad has reaffirmed Bahrain Mumtalakat Holding Company’s MYR 3 billion ($920 million) sukuk murabahah programme with a long-term rating of AA2 and a stable outlook. This rating represents a strong investment grade credit rating profile, said a statement.
Commenting on the rating announcement, Mahmood Hashim Al Kooheji, chief executive officer of Mumtalakat, said: “The strength of our business strategy and sustainability of favourable long-term financial prospects have been underscored with RAM Rating Services reaffirmation of the AA2 long-term rating and stable outlook of Mumtalakat’s Sukuk programme.”……………………………………….Full Article: Source

RAM rates Mumtalakat’s MYR 3 bln Sukuk

Posted on 15 August 2013 by VRS  |  Email |Print

RAM Rating Services recently announced that it has reaffirmed Bahrain Mumtalakat Holding Company’s MYR 3 billion Sukuk Murabahah programme with a long-term rating of AA2 and a stable outlook, representing a strong investment grade credit rating profile.
Mahmood Hashim Al Kooheji, Chief Executive Officer of Mumtalakat said, “The strength of our business strategy and sustainability of favourablelong-term financial prospects have been underscored with RAM Rating Services reaffirmation of the AA2 long-term rating and stable outlook of Mumtalakat’s Sukuk programme.”……………………………………….Full Article: Source

Russia sovereign fund may invest in Aussie, Canadian dollar

Posted on 14 August 2013 by VRS  |  Email |Print

Russia may expand the list of assets where it may invest state cash by adding new positions to National Welfare Fund (NWF) investments, draft proposals published by the Finance Ministry showed on Tuesday.
The fund, which stood at 2.86 trillion roubles ($86.7 billion) as of Aug. 1, may already be invested in euros, U.S. dollars, pounds or the treasury bonds of 13 countries, including the United States, Canada, European Union………………………………………..Full Article: Source

India to reserve 30 pct of tax free bonds for sovereign funds

Posted on 13 August 2013 by VRS  |  Email |Print

India will allow sovereign wealth funds to invest up to 30 percent in the tax free bonds to be sold by state-run infrastructure companies, Finance Minister P Chidambaram said on Monday.
The government has allowed state-run companies to sell about 500 billion rupees worth of tax-free bonds in the current fiscal year 2013/14………………………………………..Full Article: Source

Sovereign wealth funds get nod to invest in tax-free bonds

Posted on 13 August 2013 by VRS  |  Email |Print

The Central Board of Direct Taxes has given its nod for several State-owned entities to mobilise Rs 48,000 crore this fiscal through tax-free bond issuances.
As many as 12 State-owned entities and the National Housing Bank (a subsidiary of the Reserve Bank of India) have been allowed to raise funds through this route, after analysing their need and capacity to raise money in the market. The tenure of the bonds could be 10, 15 or 20 years………………………………………..Full Article: Source

Norway’s fund lost 2pct on government bonds amid Japanese slump

Posted on 12 August 2013 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, said it lost 2 percent on its government bond holdings in the second quarter as the value of its Japanese securities and inflation-linked debt declined.
“The rise in yields meant that most fixed-income sectors produced a negative return for the quarter,” the fund said in a statement today. “Uncertainty in fixed-income markets also increased.”……………………………………….Full Article: Source

Neiman Marcus selects banks for IPO

Posted on 07 August 2013 by VRS  |  Email |Print

Neiman Marcus Group Inc. hired banks to work on an initial public offering, said people familiar with the matter, after the luxury retailer spent the summer exploring a sale to a sovereign wealth fund.
Neiman reached out to sovereign-wealth funds in an effort to find an outright buyer for the luxury retail chain to no avail, one of the people said. The retailer held discussions with the Qatar Investment Authority about buying the chain or possibly acquiring only Neiman’s Bergdorf Goodman department stories, but the two sides couldn’t agree on terms, this person said………………………………………..Full Article: Source

$1bln NSIA: Infrastructure, future generation get lion shares

Posted on 05 August 2013 by VRS  |  Email |Print

The Nigeria Sovereign Wealth Fund Authority (NSIA) has officially allocated the $1 billion take-off grant into three sectoral areas. The three areas are stabilisation fund, which got $200 million or 20 per cent allocated to it; infrastructure fund, $325million or 32.3 per cent and the future generation fund, $325 million or 32.5 per cent, while the balance of $150 million or 15 per cent will be kept to be used to top up each of the ring funds as opportunity arises.
The Minister of Finance and Coordinating Minister of the Economy, Dr Ngozi Okonjo-Iweala, disclosed this on Thursday in Abuja while paying an assessment visit to the NSIA headquarters, the custodian of the Sovereign Wealth Fund………………………………………..Full Article: Source

China sovereign fund added stocks, cut bonds

Posted on 29 July 2013 by VRS  |  Email |Print

China Investment Corp. significantly increased its public equities holdings while cutting those of fixed-income securities and cash, a strategy that helped the $575 billion sovereign-wealth fund post a 10.60% return on its global portfolio last year compared with a 4.3% loss in 2011.
CIC said in its 2012 annual report released Friday that public equities made up 32.0% of its global portfolio at the end of last year, up from 25% at the end of 2011. Long-term and “absolute return” assets, which include direct investments in non-public companies as well as private equity and hedge funds, together accounted for 45.1% of its portfolio, up from 43.0%………………………………………..Full Article: Source

India may draw SWFs to invest in infrastructure bonds

Posted on 25 July 2013 by VRS  |  Email |Print

Apparently, the government of India may permit a direct line of investment for sovereign wealth funds to invest in in tax-free infrastructure bonds. Sovereign funds have expressed interest in India and desire allocating to investments that provide substantial yield. Several large state-owned institutions have had infrastructure bond-issuances in which cash has yet to be spent.
Bonded by red tape, many large-scale infrastructure projects are clogged up, preventing further cash disbursements. The Indian finance ministry reprimanded several projects for leaving bond-issued funds sitting in bank deposits………………………………………..Full Article: Source

India: Sovereign wealth funds to get access to tax-free infra bonds

Posted on 24 July 2013 by VRS  |  Email |Print

The government is set to allow a direct line of investment for sovereign wealth funds (SWFs) in the tax-free infrastructure bonds as part of measures to shore up forex reserves and stem rupee slide.
The government may also ask state-owned infra finance firm such as IIFCL, PFC, IRFC and IREDA to raise funds overseas in larger quantum. “Some sovereign wealth funds have shown interest in picking up a substantial chunk in infrastructure bonds of state-owned entities….we are looking at how this can be worked out,” a senior finance ministry official told ET………………………………………..Full Article: Source

Alaska SWF’s single-family investment attempts to go public

Posted on 22 July 2013 by VRS  |  Email |Print

Historically, the single-family rental business was in the realm of private and individual investors. Times have changed as institutional investors seek out opportunities to increase yield for themselves and clients. Firms like the Blackstone Group and Colony Capital allocated massive amounts of capital to the single-family property market.
In July 2012, up in Juneau, the Alaska Permanent Fund Corporation (APFC) allocated US$ 600 million to pursue a single-family property investment strategy. At the time, the strategy was introduced by Jay Willoughby, the incoming chief investment officer. Under the special opportunity silo of the APFC’s asset allocation, the Alaskan sovereign fund partnered with American Homes 4 Rent………………………………………..Full Article: Source

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