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Sovereign Wealth Funds Briefing - Archive | October, 2014

Libya’s $60bn sovereign wealth fund thrown into chaos

Posted on 31 October 2014 by VRS  |  Email |Print

Libya’s $60bn sovereign wealth fund has been thrown into chaos by the sudden replacement of its chairman amid a fierce power struggle for control between the official elected government and Islamists who have seized control of the capital Tripoli. Former minister Abdulrahman Benyezza was replaced as chairman of the board of the fund on October 27, The Telegraph understands. His position was taken by Hassan Ahmed Bouhadi.
The change at the top of the Libyan Investment Authority (LIA) comes as the fund, which was the main investment vehicle of the former regime led by Muammar Gaddafi, is locked in a bitter court battle with Wall Street giant Goldman Sachs. The LIA is claiming that the bank cosied up to its employees and hoodwinked it into making $1.2bn-worth of trades during the Gaddafi era that it did not understand, and is seeking damages………………………………………..Full Article: Source

Harrods pays Qatari owners GBP118m dividend after record year

Posted on 31 October 2014 by VRS  |  Email |Print

The Qatari owners of Harrods have banked a £117.6m dividend on the back of another year of brisk trade at the London department store. The famous Knightsbridge store was snapped up by Qatar Holding, the investment arm of Qatar’s sovereign wealth fund, in 2010 for an estimated £1.5bn. The retailer’s parent group paid the dividend to a Qatari offshore company based in the tax haven of Bermuda. In 2013 the owners drew a dividend of £68.6m.
Operating profits at the store, which is heavily reliant on the wealthy tourists who flock to the capital, increased 13% to £122.9m on record sales of £794m in the year to 1 February. It also paid an internal royalty fee of £35.6m, according to the accounts for the Harrods Limited subsidiary………………………………………..Full Article: Source

Kuwait fiscal reserves at 548 bln: report

Posted on 31 October 2014 by VRS  |  Email |Print

After first deducting 10 percent of revenues for its sovereign wealth fund that percentage was increased to 25 percent in the last two fiscal years. The tiny emirate has a native population of 1.25 million and is also home to about 2.8 million foreigners. The Kuwait Investment Authority (KIA) has decided to resume selling stakes in major local companies to the public planning to offer its stake in Kuwait Investment Co in the first half of 2015 state news agency KUNA reported last week.
The KIA one of the world’s largest sovereign funds with assets estimated at over 400 billion began offering stakes in listed Kuwaiti firms to the public in the 1990s as part of efforts to transfer more of the country’s corporate wealth into private hands. But the programme has been interrupted by bouts of stock market weakness including a 2009-2012 slump in the wake of the global financial crisis………………………………………..Full Article: Source

Investcorp and Mumtalakat Acquire PRO Unlimited

Posted on 31 October 2014 by VRS  |  Email |Print

Investcorp , a global provider and manager of alternative investment products, and Mumtalakat, today announced that they have acquired PRO Unlimited, a leading provider of software and services that enable large enterprises to more effectively manage their contingent workforce. Terms of the transaction were not disclosed.
Founded in 1991, PRO Unlimited delivers a full range of services to address procurement, management and compliance issues related to contingent workers, including independent contractors, consultants, temps and freelancers. PRO operates in 52 countries and provides services to some of the world’s largest and most prestigious companies through its integrated, vendor-neutral software and services platform………………………………………..Full Article: Source

Fitch Rates Bahrain Mumtalakat Holding Company’s Trust Certificate Issuance & EMTN Programmes

Posted on 31 October 2014 by VRS  |  Email |Print

Fitch Ratings has assigned Bahrain Mumtalakat Holding Company ’s (BBB/Stable) upcoming trust certificate programme (Sukuk) and euro medium term note programme (EMTN) a ‘BBB(EXP)’ expected rating. The rating is in line with Mumtalakat ’s Long-term Issuer Default Rating (IDR) and senior unsecured rating.
The final rating is contingent upon the receipt of final documentation conforming materially to information already received and details regarding the Sukuk and bond programme amount. Fitch understands that the proceeds will predominantly be used to refinance upcoming maturities, in particular those in 2015 (BHD283m). Moreover, Fitch understands that there is no material secured debt within the group other than at Gulf Air (BHD97m)………………………………………..Full Article: Source

Norway’s oil fund held back by losses on European stocks

Posted on 31 October 2014 by VRS  |  Email |Print

The $838 billion fund, the world’s biggest sovereign wealth fund, said losses on its European equities were offset by gains on its bondholdings, and a better showing from its US stock portfolio.
Norges Bank Investment Management, the arm of the central bank that manages the fund, said Wednesday that earnings on its investments totalled Nkr15 billion ($2.27 billion). The total value of the fund on September 30 was Nkr5.534 trillion. Equity investments lost 0.5% in the third quarter, while fixed-income investments gained 0.9%, NBIM said. European shares lost 4.3%, while US stocks logged a 3.8% gain………………………………………..Full Article: Source

ETFs to Play the Largest Wealth Fund’s India Bet

Posted on 31 October 2014 by VRS  |  Email |Print

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

GIC Buys Stake in Turkey Property Firm

Posted on 31 October 2014 by VRS  |  Email |Print

Sovereign-wealth fund GIC Pte. Ltd. is acquiring a stake in a Turkish real-estate firm for 250 million euros (US$316 million), the latest move by the Singapore firm to tap assets in emerging markets.
The sovereign-wealth fund will buy a 20% stake in Rönesans Gayrimenkul Yatýrým A.S., which has 25 properties in its portfolio including shopping malls and offices in Turkey. The transaction is expected to be completed by the end of this year, the companies said in a joint statement………………………………………..Full Article: Source

GIC to take $402m stake in Turkish real estate developer

Posted on 31 October 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC will inject 250 million euros (S$402 million) to acquire a strategic stake in Turkey’s leading commercial real estate developer, Ronesans Gayrimenkul Yatirim (RGY), both firms said.
GIC will acquire “above 20 per cent shareholding in RGY” by subscribing to a rights issue, allowing it to become a “substantial minority” investor and strategic partner. “The new capital will reinforce RGY’s foothold as a leader in the Turkish commercial real estate market and allow for future expansion of its business,” the statement said………………………………………..Full Article: Source

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

Posted on 31 October 2014 by VRS  |  Email |Print

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

1MDB denies claims over amassed debt, commissions paid

Posted on 31 October 2014 by VRS  |  Email |Print

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

1MDB says detractors ‘factually incorrect’

Posted on 31 October 2014 by VRS  |  Email |Print

1Malaysia Development Bhd (1MDB) has cleared the air over “insinuations” and “unsubstantiated” claimsbycriticsaboutvarious elements of its sprawling businesses.
The country’s sovereign wealth fund, in a five-page statement yesterday, refuted allegations of overpaying for certain energy and real estate assets, including plots of land in Penang, and getting preferential treatment in power plant tenders………………………………………..Full Article: Source

1MDB breaks silence over debt and cronyism claims

Posted on 31 October 2014 by VRS  |  Email |Print

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

Slow Progress on SWF Governance Standards

Posted on 31 October 2014 by VRS  |  Email |Print

Governance and transparency standards at some of the world’s largest sovereign wealth funds (SWFs) are still falling below agreed levels, according to a study. Geneva-based political risk consultancy GeoEconomica found that only nine of 31 SWFs surveyed had complied with a “good governance and financial disclosure standards” agreement laid out in 2008, known as the Santiago Principles.
This is up only slightly from the 2013 study, which found six funds in compliance with the principles. Funds run by Gulf countries were particularly criticised in the latest report………………………………………..Full Article: Source

Sovereign-wealth funds are cutting out the middleman

Posted on 31 October 2014 by VRS  |  Email |Print

Sovereign-wealth funds and other big institutional investors from Ottawa to Oslo and—if icefishing isn’t your thing—Abu Dhabi to Auckland are hiring. The intention is to lure talent from private-equity firms and hedge funds in order to make the same sort of investments in-house. Sovereign-wealth funds made direct investments of around $186 billion last year, nearly triple the level of 2012, according to the Sovereign Wealth Fund Institute, a consultancy.
Pension funds, insurers and family offices are doing the same—a response in part to the exorbitant fees and disappointing returns of many asset-managers. ADIA, Abu Dhabi’s sovereign-wealth fund, with assets of $773 billion, now employs 1,500 people. South Korea’s National Pension Service ($430 billion) will boost its investment team by 60 people this year………………………………………..Full Article: Source

Middle East sovereigns accelerate push to alternatives

Posted on 31 October 2014 by VRS  |  Email |Print

Every Middle Eastern sovereign wealth fund plans to increase its exposure to real estate in the year ahead and most also plan to increase their allocations to private equity, says a long-standing survey of investors based in the region.
The findings – from the Invesco Asset Management Study and based on interviews with 112 investors – underline the trend towards alternative asset classes. Middle East sovereign funds use a “barbell” investment model, says Nick Tolchard, head of Invesco Middle East, who was in Dubai to present the findings………………………………………..Full Article: Source

Norway’s $860 Billion Wealth Fund Bets Big on Modi’s India

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund, the world’s largest, will increase its holdings “significantly” in India as Prime Minister Narendra Modi opens Asia’s third-largest economy to investments and competition.
The fund today revealed that it raised its holdings of Indian bonds and stocks to 0.9 percent of its fixed-income and equities portfolios, as part of a broader plan to increase its presence in emerging markets and generate bigger returns………………………………………..Full Article: Source

Norway’s oil fund hit by European equities

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860bn oil fund made its first negative return in equities in more than two years as a weak performance by European stock markets hurt the world’s largest sovereign wealth fund.
Richard Milne, Nordic correspondent, reports that the oil fund made an overall return of 0.1 per cent in the third quarter as a positive performance by bonds rescued the negative return of 0.5 per cent from equities. European stocks - which still represent nearly half of the fund’s equities portfolio - had a negative return of 4.3 per cent while US and Asian stocks both performed well………………………………………..Full Article: Source

Norway Faces New Economic Realities With Oil’s Price Decline

Posted on 30 October 2014 by VRS  |  Email |Print

As global oil prices slide, there are signs Norway’s luck is running thin. On Wednesday, Statoil AS A, the oil and gas major 67%-owned by the Norwegian government, posted its first quarterly net loss since it floated on the stock market in 2001.
Separately, Norway’s $838 billion sovereign-wealth fund—the largest of its kind in the world that long has been fueled by oil revenues—said it achieved a slim 0.1% return on investments in the third quarter, thanks to a loss on its substantial holdings of European equities………………………………………..Full Article: Source

Norway’s Oil Fund Posts Flat Returns in 3Q–Update

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s oil fund, the world’s biggest sovereign wealth fund, reported a 0.1% profit on its investments in the third quarter, as a loss on its equity investments was offset by a fixed-income gain, and said geopolitical uncertainty was hurting European stocks while U.S. stocks gained.
Norges Bank Investment Management, the arm of the central bank that manages the fund, said Wednesday that earnings on its investments totaled 15 billion Norwegian kroner ($2.27 billion). The total value of the fund on September 30 was NOK5.534 trillion. Equity investments lost 0.5% in the third quarter, while fixed-income investments gained 0.9%, NBIM said. U.S. shares contributed positively, while European shares contributed negatively, NBIM said………………………………………..Full Article: Source

Tesco woes drag down Norway’s $860 bln wealth fund in third quarter

Posted on 30 October 2014 by VRS  |  Email |Print

Norway’s $860-billion sovereign wealth fund, the world’s largest, booked a flat return in the third quarter as it was dragged down by weak European stocks, foremost among them embattled retailer Tesco. The fund, one of the world’s biggest investors, is the top shareholder in the British supermarket group, which has lost 53 percent of its market value over the past year after an accounting scandal and a number of profit warnings.
“It is clear that our investment in the British company Tesco has performed particularly poorly in the course of the year,” Chief Executive Yngve Slyngstad told a news conference to present the fund’s third-quarter results………………………………………..Full Article: Source

IMF expects 14% fall of SOFAZ assets

Posted on 30 October 2014 by VRS  |  Email |Print

IMF expects 14.4% fall in assets of the State Oil Fund of Azerbaijan. According to the official report made by the IMF mission as a result of its visit to Baku, the State Oil Fund of Azerbaijan (SOFAZ) will close the year of 2014 with the assets at the level of $38.309 bn but already in 2015 they will fall to $32.802 bn.
Nevertheless, the Fund believes that the gross official international reserves of the government will grow. In 2014 they are expected to be at the level of $15.787 bn and in 2015 – at the level of $17.787 bn………………………………………..Full Article: Source

Stronger Board, More Effective Government Interaction to Mark Samruk Kazyna Transformation

Posted on 30 October 2014 by VRS  |  Email |Print

Kazakhstan’s Samruk Kazyna Sovereign Wealth Fund will redistribute responsibilities within the fund and change its portfolio structure and approach to investment as part of its recently announced transformation, Chairman of the Board of Samruk Kazyna Umirzak Shukeyev recently told The Astana Times in an exclusive interview. This will require internal changes, including training and incorporating foreign expertise, as well as legislative changes in Kazakhstan.
Samruk Kazyna officially unveiled its transformation programme, which is intended to help modernise Kazakhstan’s economy and bring an additional $11 billion to the country’s gross domestic product by 2020, on Oct. 6………………………………………..Full Article: Source

Abu Dhabi cash injection to help Real Madrid rebuild stadium

Posted on 30 October 2014 by VRS  |  Email |Print

Real Madrid signed a big new player yesterday – and players don’t come much bigger than the International Petroleum Investment Company. Ipic, the Abu Dhabi sovereign wealth fund chaired by Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, is the Spanish football club’s new long-term strategic partner.
Both the company and the club are sworn to secrecy on the length and value of the deal, but Ipic’s investment will fund the development of the Santiago Bernabeu, one of the world’s iconic football stadiums. Ipic will provide “commercial means to build the world’s greatest sports venue” and in return Real will promote Abu Dhabi globally, said the Abu Dhabi company’s managing director, Khadem Al Qubaisi………………………………………..Full Article: Source

Qatar set to conclude one of biggest property deals in UK history

Posted on 30 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund looks set to conclude one of the biggest property deals in UK history: the purchase of HSBC’s headquarters in London’s Docklands for $1.8bn, Global Construction Review reports.
The Qatari Investment Authority (QIA) has been in competition with two Chinese insurance companies, Ping An and China Life, to buy the 656ft tower, which is London’s largest office building, from South Korea’s National Pension Service (NPS). The tower has made – and lost – considerable sums for its owners in recent years………………………………………..Full Article: Source

Gulf SWFs Still Lag on Transparency, Report Says

Posted on 30 October 2014 by VRS  |  Email |Print

The sovereign wealth funds of the energy-rich Arab Gulf are some of the world’s largest pools of capital, collectively holding more than $1 trillion of assets. But their strategies, returns and approaches to risk aren’t often disclosed, something political risk consultancy GeoEconomica singles them out for in a new report.
Gulf funds lag global peers in compliance with the so-called Santiago Principles, a voluntary set of guidelines funds agreed upon in 2008, the report says. At that time, worry was growing that these huge funds might use their financial muscle to accomplish political objectives in foreign countries. The funds wanted to convince the international community that they were only seeking financial gain by more clearly spelling out their investment policies, financial information and governance structures………………………………………..Full Article: Source

Khazanah invites bids for advisory role in MAS restructuring plan

Posted on 30 October 2014 by VRS  |  Email |Print

Sovereign fund Khazanah Nasional Bhd has asked select investment banks to bid for a role in overseeing the restructuring process of Malaysia Airlines (MAS), Bloomberg reported, citing sources familiar with the matter.
The sources, who declined to be identified, told Bloomberg Khazanah had asked the banks to submit proposals by today. According to the report, Khazanah has also offered to buy the shares it doesn’t already own for RM1.38 billion (US$422 million)………………………………………..Full Article: Source

Najib telling half-truth on ‘guarantee’ given to 1MDB, claims DAP

Posted on 30 October 2014 by VRS  |  Email |Print

The prime minister was not entirely truthful when he said that the government’s guarantee for sovereign wealth fund, 1Malaysia Development Bhd (1MDB), was only RM5.8 billion, the DAP said.
The party’s national publicity secretary Tony Pua claimed that on top of the government’s guarantee, the Finance Ministry had also issued “letters of support” for other loans undertaken by 1MDB. Thus, he said, Datuk Seri Najib Razak’s written reply yesterday to a question by Bagan MP Lim Guan Eng on former prime minister Tun Dr Mahathir Mohamad’s criticism of 1MDB and its debt was a “half-truth”………………………………………..Full Article: Source

Top sovereign funds fail on governance

Posted on 29 October 2014 by VRS  |  Email |Print

A majority of the world’s largest sovereign wealth funds lack transparency and adequate governance, with those in the Gulf region scoring particularly low, according to a report published by political risk group GeoEconomica. eneva-based GeoEc-onomica, an independent political-risk research firm, assessed 31 sovereign wealth funds with a total of $4 trillion worth of assets for their compliance with the Santiago Principles, a voluntary code of practice on governance and transparency.
“Numerous funds, most notably from the Gulf region, still need to substantially advance their financial disclosure policies and become more transparent about governance arrangements,” GeoEconomica said in its Santiago Compliance Index, which it has published annually for the past three years………………………………………..Full Article: Source

Sovereign Wealth Funds Flex Their Muscle in Direct Investing

Posted on 29 October 2014 by VRS  |  Email |Print

When Blackstone Group was bidding for human resources software vendor Kronos Inc last year, the firm met an unexpected co-investor: GIC Private Ltd., a sovereign wealth fund from Singapore and a limited partner of Blackstone’s, which wanted to invest alongside Kronos’s prospective buyer.
Blackstone didn’t anticipate GIC’s interest but teamed up with the fund nonetheless, dividing a 44% stake in Kronos between the two. Existing investor Hellman & Friedman remained the majority stakeholder in Kronos………………………………………..Full Article: Source

Building the SNB a cross of gold (or an SWF?)

Posted on 29 October 2014 by VRS  |  Email |Print

But no, on November 30 there’s to be a vote in Switzerland which, if won, would shackle the Swiss National Bank by forcing it, amongst other things, to hold at least 20 per cent of its assets in gold; to repatriate any gold stored abroad; and to refrain from selling any gold in future.
From SocGen’s Sebastian Galy:The ban on selling Gold would go into effect immediately and the SNB would have five years to reach the 20% requirement. Over the five-year period, the SNB would have to sell part of its currency reserves (or theoretically print money) to finance the Gold purchases. Currently this amounts to selling USD68bn, mainly by selling EUR and USD, to buy 1,783 tons of Gold………………………………………..Full Article: Source

The Temasek story: Growing with Singapore

Posted on 29 October 2014 by VRS  |  Email |Print

Temasek Holdings works for a better tomorrow as a responsible and trusted steward, said its executive director and CEO Ho Ching, who was awarded the Asian Business Award by London-based business think-tank Asia House. Below is an extract of her speech at the award ceremony dinner in London on Monday.
Singapore was already known in the second century to the Greco-Roman world as a trading post. Ptolemy named it Sabana. Third-century merchants from China called it Pu Luo Zhong — the Island at the End. In 1819, nearly 200 years ago, Sir Stamford Raffles took over Singapore towards the tail end of the Anglo-Dutch spice trade tussle in the Far East. This little island trading post grew quickly………………………………………..Full Article: Source

Norwegian oil fund, TIAA-CREF take stakes in US office asset

Posted on 29 October 2014 by VRS  |  Email |Print

Norges Bank Investment Management (NBIM) and TIAA-CREF have bought stakes in a US office property. he Norwegian sovereign wealth fund said it paid $196m (€154m) for its 49.9% stake in the 17th Street building in Washington DC.
TIAA-CREF, with a 50.1% stake, will asset-manage the property for the joint venture. he 364,502sqft property is, it added, “unencumbered by debt”………………………………………..Full Article: Source

The Alaska Permanent Fund: Socialism in a Republican State

Posted on 29 October 2014 by VRS  |  Email |Print

Alaska is a land of rugged individualists – Republicans all the way. However, a little known fact is that Alaska taxes the oil and gas corporations operating there and distributes the proceeds on an annual basis equally among every man, woman and child living in the state.
The biggest farce of all is that Tea Party touter, Governor Sarah Palin, slapped an excess profits tax on the state’s oil companies in 2008, the year she ran for vice-President alongside John McCain, so that every person in Alaska received a dividend of $3269 that year. That was a pretty good haul for a family of four: $13,076. For Palin’s family – husband Todd, sons Track and Trig and daughters Bristol, Willow and Piper – it came to an even better haul – $22,883!……………………………………….Full Article: Source

Qatar fund set to buy Canary Wharf tower for $1.7bn

Posted on 29 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund is believed to have moved ahead of Chinese bidders to buy HSBC’s global headquarters in London’s Canary Wharf for $1.7 billion. In what would be one of the biggest property deals in the UK, Qatar Investment Authority has reportedly agreed to buy London’s biggest and most expensive office building, a 656 foot tower with 45 storeys in the heart of the city’s docklands area.
The building was put on the market in April this year by Korea’s National Pension Service (NPS), who are looking to cash in on London’s booming property market………………………………………..Full Article: Source

Qatar beats Chinese rivals in $1.8bn deal for London’s largest office tower

Posted on 29 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund looks set to conclude one of the biggest property deals in UK history: the purchase of HSBC’s headquarters in London’s Docklands for $1.8bn.
The Qatari Investment Authority (QIA) has been in competition with two Chinese insurance companies, Ping An and China Life, to buy the 656ft tower, which is London’s largest office building, from South Korea’s National Pension Service (NPS). he tower has made – and lost – considerable sums for its owners in recent years………………………………………..Full Article: Source

General Electric, Mubadala Joint Venture Plans Debut Bond Sale

Posted on 29 October 2014 by VRS  |  Email |Print

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

How Excess Crude Account Was Depleted From $9bn To $2bn – Okonjo-Iweala

Posted on 29 October 2014 by VRS  |  Email |Print

The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Monday disclosed how insistence by the states to share the money in the Excess Crude Account (ECA) resulted in the depletion of the account from $9 billion to $2 billion last year.
Okonjo-Iweala, who made this disclosure while defending the 2015-2017 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Policy (FSP) before the Joint Senate Committee on Finance and National Planning, said for the economy to remain stable, the ECA which she said later rose from $2 billion to $4.1 billion needs to be further raised and stabilised at $5 billion………………………………………..Full Article: Source

Nigeria needs to beef up excess crude account to $5bn – minister

Posted on 29 October 2014 by VRS  |  Email |Print

Nigeria’s Minister of Finance Ngozi Okonjo-Iweala, has said that Nigeria needs to raise its excess crude account, which currently stands at $4.1 billion to $5 billion in order to sustain stability of the economy. Nigeria’s Vanguard newspaper report on Tuesday said that Okonjo-Iweala told the Senate committees on Finance and National Planning, during consideration of the 2015-2017 Medium Term Expenditure Framework (MTEF) on Monday in Abuja that the excess crude account was built to be able to cushion us at times like this.
She explained that when the country had some kind of difficulties and “I think it played that role to perfection during the crises of 2008, when oil fell to 38 to 40 dollars per barrel”. “We have calculated that in order to help us regain this stability, we need a minimum of about 5 billion dollars and anything about that is good. The IMF actually calculated $6.3 billion to be maintained in that account………………………………………..Full Article: Source

QIA leads fund rankings for missing Santiago governance standards

Posted on 28 October 2014 by VRS  |  Email |Print

The world’s most active sovereign wealth funds are also among the least transparent and least likely to comply with corporate governance norms, according to a review by consultancy GeoEconomica. The Geneva-based political risk group ranked 31 funds against principles of good governance and financial disclosure standards that they all signed up to in Santiago in 2008, and found that many of the most active groups fell short.
GeoEconomica’s conclusion underscores the opaque nature of some funds, which have the deepest pockets, even as they pervade the corporate world by expanding abroad and ramping up their direct investments in companies and infrastructure projects………………………………………..Full Article: Source

Qatar Fund arrives Sri Lanka with US$ 100 mn

Posted on 28 October 2014 by VRS  |  Email |Print

The second largest sovereign investment giant in the Gulf region said it is scouting Sri Lanka for implementation ready projects and is vying for Sri Lanka’s surging Stock Market. Qatar Holding LLC is the investment arm of the Qatar Investment Authority (QIA) which is well-known and also called as the Qatar Fund.
QIA is the second largest sovereign wealth fund in the Gulf Cooperation Council region after Saudi Arabian General Investment Authority (SAGIA). QIA’s QH was established in 2006. QH invests internationally and locally in strategic private and public equity as well as in other direct investments, and is considered to have a high profile global outreach………………………………………..Full Article: Source

Qatar to buy HSBC’s global HQ for GBP1.1bn

Posted on 28 October 2014 by VRS  |  Email |Print

Qatar’s sovereign wealth fund has agreed to buy HSBC’s global headquarters, London’s biggest and most expensive office building, in the latest sign that the global financial capital’s commercial property market is still strong. The Qatar Investment Authority will pay just over £1.1bn to Korea’s National Pension Service for the building, said people familiar with the matter.
The price just tops the previous record for the Canary Wharf tower, which was bought by Spanish property company Metrovacesa for £1.09bn in 2006. HSBC had to take ownership back in-house in 2008 after Metrovacesa got into financial difficulties. It later sold the building to Korean pension fund NPS for nearly £800m………………………………………..Full Article: Source

Putrajaya must explain how 1MDB benefits Malaysians, says Dr M

Posted on 28 October 2014 by VRS  |  Email |Print

Tun Dr Mahathir Mohamad today urged Putrajaya to explain how the 1Malaysia Development Berhad (1MDB) had benefited Malaysians, after a news report exposed the extent of the sovereign wealth fund’s debts.
“A government spokesman said that the money from 1MDB is used for Bumiputras,” wrote the former prime minister in his blog, chedet.cc. “What I know is that one scholarship was given to a music student. It’s impossible that the scholarship cost RM38 billion?……………………………………….Full Article: Source

China Plans GBP105bn Investment in British Infrastructure by 2025

Posted on 28 October 2014 by VRS  |  Email |Print

China is planning massive investment in the UK infrastructure by 2025, as Beijing seeks a safe haven for outbound investment, according to research conducted by London-based Centre for Economics and Business Research and the law firm Pinsent Masons.
The Financial Times, citing the research, reported that China is set to invest £105bn ($169bn, €133bn) in British infrastructure by 2025. The world’s second largest economy will primarily invest in the UK’s energy, property and transport infrastructure. China has already invested £11.7bn in Britain between 2005 and 2013. The investment includes sovereign wealth fund China Investment Corporation’s acquisition of a 10% stake in Thames Water, Britain’s biggest water utility………………………………………..Full Article: Source

Will China ride to the rescue of Britain’s dilapidated infrastructure?

Posted on 28 October 2014 by VRS  |  Email |Print

As debate rages over the costs of HS2 and how a proposed “HS3” high speed rail link will be funded, a new report estimates China will invest more than £100bn in UK infrastructure over the next 11 years.
China’s sovereign wealth fund, the China Investment Corporation (CIC), has been pouring cash into a number of UK infrastructure companies over the last five years, including taking a 10pc stake in Heathrow Airport, which is valued at $730m (£453m)………………………………………..Full Article: Source

Alaska Permanent Fund Buys Half of Zenia Boulevard Shopping Center

Posted on 28 October 2014 by VRS  |  Email |Print

The Alaska Permanent Fund, State-owned fund managing the U.S. government pensions, also wants to invest in Spanish real estate. The corporation has sealed a deal with Inmochan, property management arm of the Auchan group, on co-investment in three retail parks, two of them located in Portugal and one in Spain.
The Alaska Permanent Fund is going to award management of the shopping malls to CBRE Global Investors. The U.S. investor was assisted by Deloitte Real Estate in the deal. The three properties will be administered by a joint venture created by the parties and held fifty-fifty. The operation is said to involve a €150 million amount………………………………………..Full Article: Source

GIC buys 5 pct stake in US-listed healthcare tech firm IMS

Posted on 27 October 2014 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has bought a 5 percent stake in IMS Health Holdings, a U.S.-listed technology firm servicing the healthcare sector, for an undisclosed amount, according to a regulatory filing.
GIC Private Ltd bought common stock of IMS Health earlier this month, according to a Securities and Exchange Commission filing on Oct 23. TPG Capital owns about 48 percent of IMS Health, which has a market value of $8.7 billion, Thomson Reuters data shows………………………………………..Full Article: Source

China set to invest £105bn in UK infrastructure by 2025

Posted on 27 October 2014 by VRS  |  Email |Print

China is set to invest £105bn in British infrastructure by 2025, with energy, property and transport the biggest recipients, according to research. The world’s second-biggest economy has already invested £11.7bn in Britain between 2005 and 2013, including a 10 per cent stake in Thames Water, Britain’s biggest water utility, held by the China Investment Corporation, the sovereign wealth fund.
This is expected to rise rapidly as Chinese capital seeks a safe haven for outbound investment, according to a report by the London-based Centre for Economics and Business Research and the law firm Pinsent Masons, which is due to be launched by the Chinese International Contractors Association in Beijing next month………………………………………..Full Article: Source

Tanzania: Govt to establish natural resource Fund

Posted on 27 October 2014 by VRS  |  Email |Print

To ensure that ongoing gas exploration and subsequent planned production benefits the country, the Ministry of Energy and Minerals is to create a Sovereign Wealth Fund (SWF) that will serve as a catalyst for future national development projects fueled by the gas and oil sectors.
Addressing stakeholders at the Tanzania Oil and Gas Conference and Exhibition (TOGACE) mid week in Dar es Salaam, Deputy Minister Masele also announced plans to table a bill in parliament geared at controlling expenditure of revenue collected from natural resources. The Deputy Minister warned that Tanzania may suffer an economic recession should it commit itself to gas production expenditures instead of development projects………………………………………..Full Article: Source

Mumtalakat’s Chief On The Fund’s Comeback

Posted on 27 October 2014 by VRS  |  Email |Print

As Mumtalakat rides high on its recent leap in profits, its chief executive Mahmood Hashim al Kooheji talks about the fund’s plans to step up its international investments and Bahrain’s non- oil sector. One of the smaller and younger sovereign wealth funds in the region, Bahrain’s Mumtalakat has played a key role in developing the Gulf country’s economy. Founded in 2006, it holds stakes in 38 firms, including non- oil stalwarts such as Aluminium Bahrain (Alba) and Bahrain Telecommunications Co (Batelco), for a combined value of $7.2 billion.
The year 2014 started on a distinctive note for the wealth fund as it posted a significant jump in profits 2013 after recording losses for five straight years. Mumtalakat’s gross profit last year rose 135 per cent to reach BD109.4 million compared with a net loss of BD46.5 million in 2012………………………………………..Full Article: Source

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