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Sovereign Wealth Funds Briefing - Archive | September, 2013

More sovereign wealth funds planned in Asia

Posted on 30 September 2013 by VRS  |  Email |Print

Governments around the world- most notably in Asia -are planning to set up more investment funds that follow a public-private partnership investment approach, according to research* by Invesco. The new study-the US fund house’s first to focus solely on sovereign institutions, to be released today- also confirms a strong shift by Asian state investors into alternatives.
Although Asian and Middle East sovereigns still allocate less to alternatives than their Western counterparts, the findings suggest they are starting to adopt a more Western approach in terms of their investment models. This is a positive trend for managers specialising in alternatives, notes Desmond Ng, CEO of Greater China at Invesco………………………………………..Full Article: Source

Sovereign wealth funds turn to emerging markets

Posted on 30 September 2013 by VRS  |  Email |Print

Sovereign investors are increasingly keen to invest in emerging markets such as Africa, China and Latin America at the expense of continental Europe and the UK, according to a study of 37 institutions with $4.7tn of assets.
The research by Invesco, the US money manager, looked at government-backed pension funds as well as sovereign wealth funds. It highlighted a push by many vehicles to invest more in their own regions………………………………………..Full Article: Source

Lessons from Norway

Posted on 30 September 2013 by VRS  |  Email |Print

A look at the Norwegian Oil Fund, one of the world’s largest Sovereign Wealth Funds, might prove instructive for Israel. The discovery of gas by Israel in the Mediterranean Sea has led to discussions about the establishment of a Sovereign Wealth Fund, while a wave of optimism regarding to the financial safety of the country has washed over the government.
For some perspective, a look at the Norwegian Oil Fund, one of the world’s largest Sovereign Wealth Funds, might prove instructive. Rubbing the varnished surface of the NOF, some scratches appear which may augur a morose future for Norway………………………………………..Full Article: Source

A repeat of 2008 could knock 30pct off oil fund, warns NBIM head

Posted on 30 September 2013 by VRS  |  Email |Print

Yngve Slyngstad, CEO of Norges Bank Investment Management, has warned that the country’s sovereign wealth fund could lose the equivalent of the Norwegian state budget should the world face another year such as 2008, when most asset classes fell in tandem.
Norway’s sovereign wealth fund, the Government Pension Fund Global, is managed by NBIM, headed by Slyngstad. The fund has been branching out into property, to diversify away from core equity and fixed income holdings………………………………………..Full Article: Source

Debt-laden countries could learn from Norway - PM

Posted on 30 September 2013 by VRS  |  Email |Print

Debt-laden European nations and resource-rich developing countries could all learn from Norway’s tight-fisted spending habits and oil wealth management programme, the country’s outgoing prime minister has said.
Jens Stoltenberg said Norway had become one of the wealthiest countries in the world mainly by refusing to spend its huge state oil revenues, instead placing them in a sovereign wealth fund and using only the annual returns. “That way the fund lasts forever,” he told an academic audience at Harvard University in Cambridge, Massachusetts………………………………………..Full Article: Source

China’s sovereign wealth fund banks on diversified investment approach

Posted on 30 September 2013 by VRS  |  Email |Print

At first glance, the nondescript building in downtown Beijing does not even merit a second look. But very few know that behind the glass facade is the office of China Investment Corp, the country’s sovereign wealth fund that has $575 billion in assets and invests predominantly in overseas markets.
There is no sign of wealth or rich trappings, and the sparsely furnished walls, or the corner office of the chairman and the spartan furniture that dot the premises give the distinct feel and flavor of an ordinary government office in China……………………………………….Full Article: Source

Visible face of CIC investment

Posted on 30 September 2013 by VRS  |  Email |Print

Although there is no firm yardstick to gauge its real impact, China Investment Corp has in many ways been the most representative face of Chinese investment in Europe. Apart from its regular activities such as equity and other investments, the fund has also played a key role by teaming up with other sovereign wealth funds for joint investments on the continent.
Fund officials say the multi-pronged approach has helped the CIC post reasonable returns on investment, despite the volatile and often deteriorating financial climate in Europe. As part of that game plan the CIC bought equity stakes in European utility companies, sectors seen as risky and unattractive in the short term………………………………………..Full Article: Source

Sovereign wealth fund must look long-term

Posted on 30 September 2013 by VRS  |  Email |Print

There are good reasons for the size of China’s foreign reserves, which since 2000 have ballooned into the world’s largest. Although China is the world’s largest importer of soybeans and iron ore, the country’s industrial processing, carried out mostly for large foreign multinationals by the huge, hard-working and skilful Chinese labor force, still dominates its foreign trade.
This fact makes China’s trade surplus quite insensitive to rises in the value of the yuan because of the large import content (of raw materials and components) in China’s exports………………………………………..Full Article: Source

Singapore fund swoops for Royal Mail stake

Posted on 30 September 2013 by VRS  |  Email |Print

A Singaporean state-backed fund is poised to become a significant shareholder in Royal Mail amid strong overseas demand for the postal operator’s shares. Sky News has learnt that the Government Investment Corporation (GIC) of Singapore has placed an order as part of the £3bn privatisation of Royal Mail, further details of which were announced last week.
GIC is one of several sovereign wealth funds which have expressed an interest in buying shares in the initial public offering, according to people close to the deal. Their appetite for the stock effectively means Royal Mail will swap the ownership of some of its shares by one government for others………………………………………..Full Article: Source

Trinidad and Tobago’s SWF reaches the US$ 5 bln mark

Posted on 30 September 2013 by VRS  |  Email |Print

Although Trinidad and Tobago’s annual Heritage and Stabilisation Fund (HSF) report isn’t due for another few months, Finance Minister Larry Howai has been quoting the fund value in a number of reports.
The first notable mention was in a budget report issued on September 9th, 2013. Howai credited “consistent and strong earnings” for the sovereign wealth fund’s impressive growth. Comparing the previous year’s statement, the fund grew from US$ 4.712 billion to US$ 5 billion with US$ 42 million in government contributions. The number was also reported in an appropriation bill issued on September 20th, 2013……………………………………….Full Article: Source

SWF money invests in Cambodian banking industry

Posted on 30 September 2013 by VRS  |  Email |Print

Regional institutional investors are becoming a stanchion for the underdeveloped banking industry in Cambodia. In 1975, during Khmer Rouge’s rule, all banks were shut down – money was abolished. After their downfall in 1979, the Riel, Cambodia’s currency, was introduced. The National Bank of Cambodia (NBC) was created as the central bank.
Today, more than 90% of the Cambodian population does not have a bank account – according to various public sources………………………………………..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

Norwegian Ethics Council Chair Mestad cautions on insincere ESG compliance

Posted on 27 September 2013 by VRS  |  Email |Print

Currently, Ola Mestad is the chair of the Council on Ethics for Norway’s Government Pension Global (GPFG) and a professor of law at the University of Oslo. It has been reported that Ola Mestad is not as enthusiastic about the efficacy of Norway’ sovereign wealth fund in recent days, specifically its responsible investment criteria.
The ethics council has a list of companies to be excluded from the sovereign wealth fund’s investment universe. Some of the companies on the exclusion list include Fortune 500 companies like Lockheed Martin Corporation, Northrop Grumman Corporation, Wal-Mart Stores and Boeing Co. In addition, a number of excluded companies have substantial public funds as investors such as Rio Tinto Plc and Potash Corporation of Saskatchewan………………………………………..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

Azerbaijani State Oil Fund’s budget-2014 to be formed by new oil prices

Posted on 27 September 2013 by VRS  |  Email |Print

While calculating its budget for 2014, the State Oil Fund of Azerbaijan (SOFAZ) will use oil prices of $100 per barrel as a basis, while a few weeks ago, the fund was using the marker of $90, SOFAZ executive director Shahmar Movsumov told journalists on Thursday.
“The outlook for oil prices has changed,” he said. “Accordingly, SOFAZ’s budget for next year will be drawn up on the basis of $100 per barrel.” SOFAZ’s budget for 2013 was also formed on the basis of $100………………………………………..Full Article: Source

Azerbaijani State Oil Fund: EITI reports in Azerbaijan to be prepared on new standards

Posted on 27 September 2013 by VRS  |  Email |Print

The report within the Extractive Industries Transparency Initiative (EITI) on 2013 will be prepared in accordance with the new EITI standards, the head of Azerbaijani State Oil Fund Shahmar Movsumov told journalists on Wednesday.
According to him, in accordance to the new standards, now the report within EITI will not reflect the total volume of transactions within extractive industry, but the contributions of each company which is the member of this initiative………………………………………..Full Article: Source

Oil Fund of Azerbaijan to start financing of TANAP pipeline and SOCAR OGPC in the nearest future

Posted on 27 September 2013 by VRS  |  Email |Print

State Oil Fund of Azerbaijan (SOFAZ) will start financing of TANAP project before the end of this year. According to Shahmar Movsumov, the Executive Director of SOFAZ, this year the Fund has already started financing SOCAR projects – oil refinery in Turkey (Star) and construction of the VI-generation floating semi-submersible drilling rig (SDR).
“In the nearest future the Fund will start financing of the new petrochemical complex SOCAR OGPC. The preparation works for the TANAP project financing are in their closing stage. The financing of this project will also be started before the end of this year”, - Movsumov said………………………………………..Full Article: Source

Mubadala says Eike Batista repaying remainder of loan until 2017

Posted on 27 September 2013 by VRS  |  Email |Print

Mubadala Development Co., an Abu Dhabi sovereign wealth fund, said the remainder of a $2 billion loan made to Eike Batista’s EBX Group Co. will be repaid over four years as he seeks to prevent his companies from collapse.
The unnamed “third party” will repay “progressively” until June 30 2017, according to the wealth fund’s first half report published today. A Mubadala official, who asked not to be identified, confirmed that the information in the financial statement related to Mubadala’s investment in EBX………………………………………..Full Article: Source

Abu Dhabi fund Mubadala’s H1 profit up 10.4 pct on investment gains

Posted on 27 September 2013 by VRS  |  Email |Print

Mubadala, the Abu Dhabi investment fund with a mandate to develop the emirate’s local economy, on Thursday posted a 10.4 percent rise in first-half profit boosted mainly by income from financial investments.
Mubadala, which has stakes in General Electric and private equity firm Carlyle, said profit attributable to equity owners for the first half of the year was 1.1 billion dirhams ($299.5 million), compared with 984.7 million dirhams in the corresponding period last year………………………………………..Full Article: Source

Mubadala income doubles to $571mln

Posted on 27 September 2013 by VRS  |  Email |Print

Mubadala Development Company (Mubadala), the Abu Dhabi-based investment and development company, today reported a total comprehensive income of Dh2.1 billion ($571 million) for the first half of this year.
The figure, which is almost double of Dh1.1 billion achieved in H1 2012, was driven by improvements in the fair value of many of the group’s financial investments and other assets, the company said………………………………………..Full Article: Source

ADIA vs Citigroup – the battle continues…

Posted on 27 September 2013 by VRS  |  Email |Print

The largest Abu Dhabi sovereign wealth fund could be about to haul Citigroup back to court with further claims to recover some of the bank’s bailout, after its prior attempts were thwarted in March.
In a document unsealed in a New York court this week, Citigroup said that a claim filed in August by the Abu Dhabi Investment Authority (ADIA) had made an “assault” on a federal court ruling in March, Reuters reported. The March ruling saw ADIA’s claim—and subsequent appeal—to recover $4 billon of the investment it made in the bank during the crisis refused………………………………………..Full Article: Source

Nigeria: Great pride befalls greater responsibility

Posted on 27 September 2013 by VRS  |  Email |Print

The Nigerian Sovereign Wealth Fund (SWF) In Perspective: As President Goodluck Jonathan this week sounded the closing bell on Wall Street, Abuja has witnessed its own symbolic break of day; an overwhelming degree of conjecture fills our national discourse, indeed an outpouring of guesswork has arisen as to our economy’s future, more specifically due to recent debates on the role and practical purpose of the $1 billion USD Nigerian Sovereign Wealth Fund (SWF).
Historically, Nigeria’s aims for federal and state-by-state savings and investment prudence have often been quashed via notorious financial misappropriation and malpractice. In light of this, today’s Sovereign Wealth Fund, overseen by the Nigerian Sovereign Investment Authority (NSIA), offers to us a unique opportunity………………………………………..Full Article: Source

Temasek unit opens bank in first Cambodian investment

Posted on 27 September 2013 by VRS  |  Email |Print

A unit of Temasek Holdings Private Ltd has opened a new bank in Cambodia with local partners in the first investment by the Singapore state investor in the country, the Straits Times reported on Friday.
Cambodia Post Bank, which aims to serve the mass market and small businesses, has a share capital of $38 million. Cambodian firm Canadia Investment Holding has a 50 percent stake, Temasek unit Fullerton Financial Holdings holds 45 percent and Cambodia Post the remaining 5 percent………………………………………..Full Article: Source

Temasek set to reap $3-bln windfall from Alibaba IPO

Posted on 27 September 2013 by VRS  |  Email |Print

Temasek Holdings looks set for a windfall from its stake in Chinese online retail giant Alibaba, which is said to be planning a mega initial public offering (IPO) in the United States. The Singapore investment firm and three other partners took a stake worth US$1.6 billion in Alibaba in 2011, which valued the company at US$32 billion.
Today, Alibaba is estimated to be worth more than US$75 billion (S$94 billion), which means the value of Temasek’s investment has doubled over two years. Some analysts have even put Alibaba’s value at up to US$120 billion, according to reports by news agency Reuters………………………………………..Full Article: Source

No US-style subprime crisis for China: Former CIC Chair

Posted on 27 September 2013 by VRS  |  Email |Print

While parallels have been drawn between China’s inflated housing market and the U.S. housing bubble that triggered the 2007-2008 global financial crisis, the world’s second-largest economy is unlikely to face similar subprime problems, according to former chairman of the board of supervisors of China Investment Corp (CIC) – the country’s sovereign wealth fund.
“You can’t generalize about a housing bubble in China. In tier-one cities there’s strong demand, in second and third-tier cities there may be some bubbles. But as long as we handle it carefully, it’s not the same as the U.S.,” Liqun Jin said……………………………………….Full Article: Source

More sovereign wealth funds in Australia’s future

Posted on 27 September 2013 by VRS  |  Email |Print

Australia has been rife with talk about establishing new sovereign wealth funds. South Australian Premier Jay Weatherill publicized the development of a future fund for South Australia’s state government. Western Australia launched its future fund in 2012.
On the national front, in the past week, Labor party leadership candidate Bill Shorten supported an idea proposed by former Prime Minister John Keating about creating an additional wealth fund, to help with Australian pensioners living past 80 years………………………………………..Full Article: Source

ACSI appoints Future Fund exec as new chief

Posted on 27 September 2013 by VRS  |  Email |Print

The Australian Council of Superannuation Investors (ACSI) has appointed senior Future Fund executive Gordon Hagart to replace chief executive Ann Byrne who will retire from the role in October.
Hagart is currently head of environmental, social and governance (ESG) risk management at the $100 billion sovereign wealth fund and previously played a key role in creating the UN Principles of Responsible Investment. He began his career as an investment banking analyst with Greenhill & Co. in London, and also worked as an investment consultant in Zurich………………………………………..Full Article: Source

SWFs see new alternative investment opportunities in Europe

Posted on 27 September 2013 by VRS  |  Email |Print

Jeffrey Jaensubhakij, managing director and president of GIC Asset Management, an arm of Singapore’s more than $100 billion sovereign wealth fund, said Europe will offer “considerable opportunities” as banks there deleverage. Evidence over the past year that eurozone policymakers will do whatever is necessary to maintain the trade bloc should give investors more confidence to pursue those opportunities, he said.
Roslyn Zhang, managing director, fixed-income and absolute-return investments with the $575.2 billion China Investment Corp., Beijing, pointed to hedge funds focused on Europe as a segment that looks especially attractive over the next few years. Explaining the CIC’s approach to its hedge fund portfolio, Ms. Zhang said while the CIC is a long-term investor, that doesn’t mean its allocations are “frozen money.”……………………………………….Full Article: Source

Citigroup moves to block new arbitration by Abu Dhabi fund

Posted on 26 September 2013 by VRS  |  Email |Print

Citigroup Inc has gone to court to block a new effort by Abu Dhabi Investment Authority to pursue an arbitration over a $7.5 billion investment the sovereign wealth fund made in the bank amid the subprime mortgage meltdown in 2007.
In a complaint unsealed Tuesday in U.S. District Court in New York, Citigroup said that by filing a claim last month, ADIA had made an “assault” on a federal court ruling in March that upheld the bank’s win in an earlier international arbitration………………………………………..Full Article: Source

The Nigerian sovereign wealth fund (SWF) in perspective

Posted on 26 September 2013 by VRS  |  Email |Print

As President Goodluck Jonathan this week sounded the closing bell on Wall Street, Abuja has witnessed its own symbolic break of day; an overwhelming degree of conjecture fills our national discourse; indeed an outpouring of guesswork has arisen as to our economy’s future, more specifically due to recent debates on the role and practical purpose of the $1 billion USD Nigerian Sovereign Wealth Fund (SWF).
Historically, Nigeria’s aims for federal and state-by-state savings and investment prudence have often been quashed via notorious financial misappropriation and malpractice. In light of this, today’s Sovereign Wealth Fund, overseen by the Nigerian Sovereign Investment Authority (NSIA), offers to us a unique opportunity………………………………………..Full Article: Source

Nigeria fund invests $200 mln as oil price cushion

Posted on 26 September 2013 by VRS  |  Email |Print

Nigeria’s fledgling sovereign wealth fund on Monday completed investment allocations for the 20 percent of the $1 billion it is setting aside to guard against commodity price shocks, its chief executive said. Nigeria, Africa’s top oil producer and most populous nation, established the Sovereign Investment Authority (SIA) in 2011 in an effort to manage resources that economists say have often been squandered in the past.
“The key to sovereign wealth funds is in the consistent contribution going forward,” Uche Orji, the SIA’s chief executive officer, said on the sidelines of the Africa Investor conference in New York………………………………………..Full Article: Source

Singapore’s Pavilion Energy plans to begin trading LNG in Q4: CEO

Posted on 26 September 2013 by VRS  |  Email |Print

Pavilion Energy, established by Singapore’s sovereign wealth fund Temasek earlier this year, will start trading LNG in the fourth quarter of this year, CEO Seah Moon Ming said at an industry event Wednesday.
“Pavilion LNG is aiming to begin regional trading of LNG within the next three months,” Seah said at a conference in Singapore, adding that Singapore has the right conditions to eventually become the first LNG trading hub in the region………………………………………..Full Article: Source

New Temasek unit wants to start regional LNG trading within three months

Posted on 26 September 2013 by VRS  |  Email |Print

Temasek Holdings’ newly set-up liquified natural gas (LNG) unit Pavilion Energy plans to begin regional trading of LNG within the next three months.
Pavilion Energy chief executive Seah Moon Ming added at a conference on Wednesday that his company, which started operations just this month, is looking at regional and global partnerships and investments as it taps into the highly-promising LNG market………………………………………..Full Article: Source

Nets owner and sovereign funds eye Uralkali stakes

Posted on 26 September 2013 by VRS  |  Email |Print

The billionaire owner of the Brooklyn Nets basketball team, Mikhail Prokhorov, and two Asian groups are among potential bidders for stakes in Russian fertiliser group Uralkali as the group’s oligarch shareholder prepares to sell out amid a spat with neighbouring Belarus.
A person close to Uralkali said an Asian sovereign wealth fund and an Asian industrial group had each expressed interest in buying a 10 per cent to 15 per cent stake in Uralkali, the world’s biggest potash producer. China’s sovereign wealth fund CIC took a 12.5 per cent stake in the group this week………………………………………..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

Hagart quits Future Fund for ACSI

Posted on 26 September 2013 by VRS  |  Email |Print

A senior manager with the federal government’s Future Fund is taking over as chief executive of a group which advises superannuation funds on responsible investment. Gordon Hagart will lead the Australian Council of Superannuation Investors (ACSI), four years after he was appointed as the head of environmental, social and governance risk management at the $89 billion Future Fund.
He replaces ACSI’s inaugural chief executive Ann Byrne, a former head of UniSuper, who is retiring at the end of October. Mr Hagart previously helped develop the UN Principles for Responsible Investment, to which many Australian ‘all profit to member’ superannuation funds are signatories………………………………………..Full Article: Source

Bill Shorten backs higher super payments to build aged care fund

Posted on 25 September 2013 by VRS  |  Email |Print

The Labor leadership candidate Bill Shorten has backed the idea of higher superannuation payments to build a sovereign wealth fund to help pay for the care of the increasing numbers of Australians living into their 80s and 90s.
Referring to a plan floated by the former prime minister Paul Keating, Shorten said Labor should consider “big” new ideas, like “encouraging people to save for a sovereign wealth fund that enables people to draw down on that resource when they need it in their 80s and 90s”………………………………………..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

CIC Chinese fund obtains 12pct equity stake in Uralkali

Posted on 25 September 2013 by VRS  |  Email |Print

Chinese sovereign wealth fund CIC has become the second largest shareholder in Uralkali, the world’s largest potash producer, in the latest shake-up to hit the industry.
CIC, which converted bond holdings into equity equivalent to a 12.5 per cent stake, will have one seat on the Uralkali board, giving the Chinese fund greater insight into the company’s negotiating and pricing policies………………………………………..Full Article: Source

Temasek’s Pavilion Energy plans to invest in Asia LNG assets

Posted on 25 September 2013 by VRS  |  Email |Print

Pavilion Energy Pte, the liquefied natural gas unit of Singapore’s state-owned investment company, wants to invest in Asian terminals and infrastructure to further its aim of supplying gas to the region.
Pavilion Energy, owned by Temasek Holdings Pte, will add more funds to its initial authorized capital of $1 billion to fulfill its ambitions, Chief Executive Officer Seah Moon Ming said at an LNG conference in Singapore today. He didn’t say how the company will raise the additional money………………………………………..Full Article: Source

Future fund to benefit infrastructure and kids, promises SA Government

Posted on 25 September 2013 by VRS  |  Email |Print

The South Australian Government has detailed plans to set up a future fund for the state. Premier Jay Weatherill said contributions would be made to the fund only when the budget was in surplus.
The Government hopes the first injection of $20 million from mining royalties will be made into the fund in 2015-16. Mr Weatherill said the money would be spent on infrastructure and on programs to benefit the development of children………………………………………..Full Article: Source

Najib opens Khazanah office in San Francisco

Posted on 25 September 2013 by VRS  |  Email |Print

Datuk Seri Najib Tun Razak officiated Khazanah Nasional Berhad’s regional office for the Amerikas, Khazanah Americas Incorporated (KAI), in San Francisco Sunday.He hoped that the opening of this office would help propel Malaysia into a developed nation status by the year 2020.
The Prime Minister said Malaysia’s visionary ambitions to reach a developed nation status by 2020 could be achieved by moving up the value chain and creating an economy driven by knowledge, innovation and technology………………………………………..Full Article: Source

Mubadala, Gulf Related in Dh248mln refinancing of The Galleria debt

Posted on 25 September 2013 by VRS  |  Email |Print

Mubadala Real Estate & Infrastructure, a business unit of Mubadala Development Company, and Gulf Related, a regional real estate development company focused on high-end retail, residential and mixed-use real estate developments in the Middle East, announce Dh248 million refinancing of The Galleria debt with the National Bank of Abu Dhabi, following the successful opening and 100 per cent leasing of the retail mall in August.
The Dh248 m refinancing facility will help The Galleria to further strengthen its capital structure, reduce its borrowing cost and generate over 50 per cent in annual interest expense savings………………………………………..Full Article: Source

Khazanah hires CIMB’s head of investment banking

Posted on 24 September 2013 by VRS  |  Email |Print

Charon Wardini Mokhzani, CIMB’s group deputy CEO with responsibility for investment banking, is leaving the Malaysian bank in early November to take on a new career challenge with Khazanah Nasional, the two firms said in separate announcements on Monday.
Charon, who is also CEO of CIMB investment bank, will at Khazanah take on a role as executive director in the managing director’s office. The state-owned investment company is the largest shareholder in CIMB with a 30% stake………………………………….Full Article: Source

A sovereign wealth fund for South Australia

Posted on 24 September 2013 by VRS  |  Email |Print

South Australian Premier Jay Weatherill has announced the establishment of a future fund for South Australia’s state government. The public fund’s objectives, according to a statement, will be to quarantine “money to be spent on infrastructure, children, families and the workforce.”
Weatherill stated that the wealth fund will be capitalized through excess petroleum and mineral revenues only if the state budget is in surplus. He estimates that the first cash infusion will take place as early as 2015 with about A$ 20 million…………………………………Full Article: Source

India proposes new financial institution to fund overseas assets acquisition

Posted on 24 September 2013 by VRS  |  Email |Print

The India government is considering creating a developmental financial corporation dedicated to fund mineral and energy acquisitions overseas. The structure of the new overseas investment corporation would be different from the previously considered sovereign wealth fund, which was rejected earlier this year by the Finance Ministry, the official said.
In June 2013, the Finance Ministry informed government-owned companies, which included oil exploration and production major ONGC Limited, iron-ore miner NMDC and steel producer Steel Authority India Limited (SAIL), that the creation of a sovereign wealth fund to acquire overseas assets by drawing on India’s foreign exchange reserves would be risky given the government’s high current account deficit (CAD)………………………………….Full Article: Source

Chinese firms ‘play fair’ in global deals

Posted on 24 September 2013 by VRS  |  Email |Print

Mainland firms have honest objectives in their efforts to acquire overseas assets, the head of one of China’s biggest investment banks said, but political suspicions remain the biggest barrier to getting deals done.
“When China wants to invest overseas in oil and gas, do we have no political objectives? Of course we have, because we want to have safe, guaranteed supply of energy,” said China International Capital Corp chairman Jin Liqun, who was formerly head of the supervisory board of China Investment Corp, the mainland’s sovereign wealth fund………………………………..Full Article: Source

Kazakhstan: BTA in recovery mode after Ablyazov arrest

Posted on 24 September 2013 by VRS  |  Email |Print

Five years after nearly collapsing under the weight of bad debts, the once-hobbled Kazakh bank BTA has a spring in its step. Kazakhstan’s third-largest lender, 97% owned by sovereign wealth fund Samruk-Kazyna, posted first-half earnings of T15.6 billion ($112 million), compared with a T658 billion loss a year ago. BTA chairman Kadyrzhan Damitov attributed the turnaround to a second debt restructuring completed in December 2012, helping boost first-half net interest income to T17 billion.
BTA’s focus this year has switched to locating and recouping billions of dollars that the bank alleges former chairman Mukhtar Ablyazov stole. Ablazov was arrested in France on July 18 on a request from Ukraine. He maintains the charges of fraud are false and politically motivated, and that BTA’s problems stem from its nationalization in 2009………………………………….Full Article: Source

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