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Sovereign Wealth Funds Briefing - Archive | February, 2016

GIC to invest US$388 million in Indonesian retail operator

Posted on 29 February 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund (SWF), GIC Private Limited (GIC), has entered into a partnership with PT Trans Retail, the main retail arm of Indonesian conglomerate CT Corp, to invest an aggregate of 5.2 trillion rupiah (US$388.33 million) in Indonesian leading retailer, Trans Retail.
Trans Retail mainly operates hypermarkets, supermarkets, and cash and carry stores under the Carrefour and TRANSmart brands. GIC said in a statement on February 24 that the collaboration would allow Trans Retail to capture the full potential of Indonesia’s modern retail market………………………………………..Full Article: Source

China’s sovereign fund CIC reshuffles team

Posted on 29 February 2016 by VRS  |  Email |Print

China’s sovereign wealth fund China Investment Corporation (CIC) is preparing for a strategic shift and will focus more on direct investments and proprietary relationships with fund managers. It has reshuffled its infrastructure team to guide the shift in focus. The firm has created a new division, named Department 2, which will invest in consumer and industrial sectors, to be led by Mi Tao, reported Infrastructure Investor.
The existing Department 1 will now be led by Benjamin Bao, and includes three infrastructure teams managed by Yan Wang, David Xie and Yuling Lu.They will look to invest in areas like renewable energy, transport and utilities. Other teams will focus on oil & gas and metals & mining………………………………………..Full Article: Source

Malaysia suspends party official, probes website over criticism of 1MDB scandal

Posted on 29 February 2016 by VRS  |  Email |Print

Malaysia’s ruling party has suspended a senior official who had asked for a deeper investigation into allegations of corruption at the country’s state investment fund and is also investigating a website that reported on the scandal, The Wall Street Journal reported.
The ruling United Malays National Organization (UMNO) suspended Muhyiddin Yassin, a deputy party president, citing his failure to support Prime Minister Najib Razak, The WSJ reported. Muhyiddin had previously been fired by Najib from his position as deputy prime minister………………………………………..Full Article: Source

1MDB Foundation to send 150 from S’wak for haj programme

Posted on 29 February 2016 by VRS  |  Email |Print

A total of 150 imam and Village Development and Security Committee (JKKK) chairpersons from Sarawak will be picked to take part in a special haj programme under the 1MDB Foundation. Prime Minister Najib Abdul Razak said 75 imam and 75 JKKK chairpersons would be picked from the state.
The programme was started by the 1MDB Foundation in 2011 with 111 pilgrims nationwide. The number was boosted to 400 people in 2012, 800 (2013), 1,000 (2014) and 1,200 (2015)………………………………………..Full Article: Source

Mubadala is said to explore SR Technics sale, Satellite IPO

Posted on 29 February 2016 by VRS  |  Email |Print

Mubadala Development Co, the Abu Dhabi investment fund, is considering the sale of Swiss aircraft-maintenance business SR Technics and an initial public offering of Yahsat Satellite as the emirate reviews its largest state- owned companies, according to four people with knowledge of the matter.
The government-backed fund has held talks on the possible transactions with banks and any deal will depend on market conditions, the people said, asking not to be identified because the talks are private. Mubadala is also seeking the sale of a stake in US chipmaker Globalfoundries Inc, one of the people said………………………………………..Full Article: Source

ICD in talks to fund new Atlantis hotel, DIFC tower – report

Posted on 29 February 2016 by VRS  |  Email |Print

State-owned Investment Corporation of Dubai (ICD) is talking to banks to raise around $1.1 billion in loans to build two major projects in the emirate, Bloomberg has reported. The newswire, which cited three people with knowledge of the plan, said that ICD is seeking a $700 million, 10-year loan to fund the construction of a second Atlantis resort on the Palm Jumeirah.
Announced at the beginning of February, the Royal Atlantis Resort and Residences is expected to take two years to complete. Master developer Nakheel has already signed building contracts with Ssanyong Engineering & Construction, China State Construction Engineering Corporation and Six Construct………………………………………..Full Article: Source

Saudi c.bank net foreign assets fall 2.4 pct in January

Posted on 29 February 2016 by VRS  |  Email |Print

Net foreign assets at Saudi Arabia’s central bank dropped 2.4 percent from the previous month to 2.23 trillion riyals ($594.6 billion) in January, central bank data showed on Sunday.
Assets fell 18.2 percent from a year earlier to their lowest level since late 2012. They reached a record high of $737 billion in August 2014 before starting to shrink. The central bank, which acts as Saudi Arabia’s sovereign wealth fund, has been drawing down its assets to cover a huge state budget deficit caused by low oil prices………………………………………..Full Article: Source

Kuwaiti, Canadian funds buy London City Airport for $2.8 billion

Posted on 29 February 2016 by VRS  |  Email |Print

A consortium of investors, which includes Kuwait Investment Authority’s Wren House Infrastructure Management, have agreed a deal to buy London City Airport for a record $2.8 billion. The Canary Wharf airport, a favourite among executives for its convenient location near London’s two financial districts, was put up for sale last summer by private equity firm Global Infrastructure Partners (GIP).
The price paid is reported to be about 32 times London City’s annual underlying profits, setting a record for an airport, according to the Times. GIP bought the airport for a reported $1bn in 2006 but in the ten years since then passenger numbers have doubled to 4.3 million in 2015, an 18% increase on the previous year………………………………………..Full Article: Source

“Samruk-Kazyna” supported the FIS Ski Jumping World Cup

Posted on 29 February 2016 by VRS  |  Email |Print

“Samruk-Kazyna” Sovereign Wealth Fund is the general partner for FIS Ski Jumping World Cup which is held on 27-28 february in Almaty. Samruk-Kazyna was founded in 2008. The key purpose of “Samruk-Kazyna” is to manage shares (interests) of national development institutions, national companies, and other legal entities it owns to maximize their long-term value and competitiveness in the world markets.
Sovereign Wealth Fund Samruk-Kazyna is established in order to enhance competitiveness and sustainability of national economy and prevent any potential negative impact of changes in the world markets on economic growth of the country………………………………………..Full Article: Source

Sovereign-wealth funds

Posted on 26 February 2016 by VRS  |  Email |Print

China’s four sovereign-wealth funds have $1.5 trillion-worth of assets between them. None is larger than Norway’s $825 billion government pension fund, according to the Sovereign Wealth Fund Institute (SWFI), a think-tank. Norway’s fund, like many others, is fed by revenues from natural resources: oil-and-gas-based sovereign-wealth funds make up 56% of the market by asset value.
The falling oil price means many countries sold assets last year to finance budget deficits. Outflows have mainly been from liquid assets like equities, which may have contributed to stockmarket turbulence this year. The SWFI predicts that another $404 billion could be withdrawn from listed equities in 2016………………………………………..Full Article: Source

S&P lowers Kazakh Sovereign Wealth Fund’s rating

Posted on 26 February 2016 by VRS  |  Email |Print

Standard & Poor’s Ratings Services lowered its long- and short-term foreign and local currency issuer credit ratings on sovereign wealth fund and joint stock company Samruk-Kazyna to ‘BBB-/A-3′ from ‘BBB/A-2′. The outlook is negative, the agency said Feb. 25.
S&P also lowered our Kazakhstan national scale rating on the company to ‘kzAA’ from ‘kzAA+’. At the same time, S&P lowered our ratings on Samruk-Kazyna’s senior unsecured debt to ‘BBB-’ from ‘BBB’. The downgrade follows a similar action on the sovereign, the statement said………………………………………..Full Article: Source

Abu Dhabi SWF to build office tower in Paris – report

Posted on 26 February 2016 by VRS  |  Email |Print

Unit of world’s second-largest sovereign wealth fund awards contract for 38-storey tower in La Defense. The Abu Dhabi Investment Authority (ADIA) is planning to build an office tower in Paris’ largest business district, according to Bloomberg.
The newswire reported that a unit of the Abu Dhabi sovereign wealth fund had bought a plot from a fund managed by UBS to build a 38-storey tower in La Defense. Bloomberg quoted LaSalle Investment, which advised ADIA on the purchase, as saying that a unit from Bouygues Construction had been awarded a $220 million contract to build the tower………………………………………..Full Article: Source

Canadian pension funds and Kuwait to buy London City Airport

Posted on 26 February 2016 by VRS  |  Email |Print

Three Canadian pension funds and the Kuwait Investment Authority have won the takeover battle for London City Airport with an offer of about £2bn. A consortium made up of Ontario Teachers’ Pension Plan (OTPP), Borealis, AIMCo and Wren House, an infrastructure investment vehicle owned by the sovereign wealth fund of Kuwait, are understood to have struck a deal to buy the airport from Global Infrastructure Partners (GIP), the giant private equity firm.
The group saw off stiff competition for the site, including bids from Chinese airlines owner HNA and Cheung Kong Infrastructure Holdings, the firm controlled by Li Ka-Shing, Asia’s richest man………………………………………..Full Article: Source

Temasek’s energy, bank holdings take a hit

Posted on 26 February 2016 by VRS  |  Email |Print

Singapore investment firm Temasek Holdings has racked up paper losses on its investments in banks and energy companies amid the global economic turmoil. Deepening pressures within the banking industry, for instance, have taken a toll on the companies in the financial services sector that Temasek has invested in.
With crude prices down more than 70 per cent - at dismal levels of US$34 a barrel - Temasek’s picks in the energy and services sector, comprising 5 per cent of the firm’s portfolio, have also not been spared the bloodbath that has affected the industry worldwide………………………………………..Full Article: Source

GIC expands Indonesia exposure, buys into retail

Posted on 25 February 2016 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC has increased its exposure to Indonesia’s growing middle class by investing 5.2 trillion rupiah ($385 million) in Trans Retail, the main retail arm of conglomerate CT Corp. CT Corp’s businesses span television and online media to retail, banking and amusement parks.
Its retail arm Trans Retail, formerly a local unit of French retail group Carrefour, currently runs 86 hypermarkets and supermarkets in the country under the Carrefour and TRANSmart brands. GIC said in a press release on Wednesday that Trans Retail is taking advantage of the rapidly expanding consumer class as Indonesia’s retail scene shifts from traditional mom-and-pop stores to modern trade formats………………………………………..Full Article: Source

GIC backs Blackstone in Rundle Place purchase

Posted on 25 February 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth fund GIC has backed Blackstone’s $400 million acquisition of Rundle Place in Adelaide with financing. The Australian Financial Review understands the fund provided mezzanine debt for the private equity giant, which bought the property in early January in what was South Australia’s largest commercial property transaction to date.
The deal demonstrates there is opportunity for foreign providers to be competitive on providing loans at a time when domestic banks and lenders are tightening conditions for property investors………………………………………..Full Article: Source

Temasek unveils €600m 6-year and €500m 12-year bonds

Posted on 25 February 2016 by VRS  |  Email |Print

They’re due 2022 and 2028, respectively. The investment company has launched both 6-year and 12-year bonds in euros, which will be used to finance its course of business. According to a press release by Temasek Holdings, both issues were oversubscribed, with robust demands from high-quality investors.
“The issues were in response to enquiries from investors about highgrade euro bonds,” said Leong Wai Leng, Temasek’s chief financial officer. “Our Temasek Bonds serve as public markers of our credit quality. They also increase our funding flexibility and enhance our capital efficiency,” Leong said………………………………………..Full Article: Source

Malaysia’s Khazanah issues US$750m sukuk to refinance maturing notes

Posted on 25 February 2016 by VRS  |  Email |Print

Malaysia’s sovereign wealth fund Khazanah Nasional Bhd issued a US$750 million five-year Islamic bond, or sukuk, on Wednesday (Feb 24) to refinance debt from one of its units that is maturing next month.
The fund said the US dollar-denominated straight sukuk was priced at a profit rate of 3.035 per cent. Despite challenging market conditions, it achieved the target size at a spread of 178 basis points over US Treasuries, Khazanah said in a statement. The sukuk attracted demand from financial institutions, asset management companies, statutory bodies and insurance companies, the fund added………………………………………..Full Article: Source

Private Equity Helps SWF Alaska Permanent Fight Oil Slump

Posted on 25 February 2016 by VRS  |  Email |Print

Alaska Permanent Fund Corp. is coping better than many other investors with the market volatility that started this past summer. The Alaska Permanent Fund, the sovereign wealth fund managed by APFC, began its 2015-’16 fiscal year down 4.4 percent for the quarter ended September 30, but rebounded, posting a 2.1 percent return for the three months ended December 31.
Although APFC missed its own benchmark for the quarter, that performance is notable, given how heavily Alaska relies on oil and that there is a slumping commodities market. Before the latest drawdown, the fund managed to take profits by selling stocks and continuing to reduce its dependency on commodities………………………………………..Full Article: Source

Abu Dhabi Investment Authority Buys Paris Office Tower Project

Posted on 25 February 2016 by VRS  |  Email |Print

The Abu Dhabi Investment Authority plans to build a 38-story office tower in Paris’s La Defense as investors bet that rents will rise in the French capital. A unit of the world’s second-biggest sovereign wealth fund bought the Tour Alto plot from a fund managed by UBS Group AG, according to LaSalle Investment Management, which advised ADIA on the purchase.
The existing building on the site will be demolished. Investors including Goldman Sachs Group LP and Carlyle Group LP are being drawn to La Defense, the largest office district in Europe, by cheaper properties they can build or renovate and that would benefit from an economic turnaround………………………………………..Full Article: Source

Abu Dhabi Crown Prince visits ADIA

Posted on 25 February 2016 by VRS  |  Email |Print

His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, yesterday paid a visit to the Abu Dhabi Investment Authority (ADIA). During the visit, Sheikh Mohamed met with members of the ADIA’s Board of Directors, heads and senior officials.
Sheikh Mohamed was received by Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Sheikh Hamed Bin Zayed Al Nahyan, Chief of the Abu Dhabi Crown Prince’s Court and Managing Director of Abu Dhabi Investment Authority (ADIA), Sheikh Mohammed Bin Khalifa Al Nahyan, Executive Council Member and a number of officials of the ADIA………………………………………..Full Article: Source

Court date set for Libyan sovereign fund dispute

Posted on 25 February 2016 by VRS  |  Email |Print

A London court date has been set to resolve a long-running dispute over the leadership of Libya’s $67 billion sovereign wealth fund, potentially paving the way for litigation against two investment banks to move forward.
The Libyan Investment Authority (LIA) is mired in a power struggle between two would-be chairmen, Hassan Bouhadi and AbdulMagid Breish. A hearing will be held in the Commercial Court in the week beginning March 7, with the aim of determining which of the LIA’s two rival chairmen has the authority to bring litigation against Goldman Sachs and Societe Generale……………………………………….Full Article: Source

Court date set for Libyan sovereign fund dispute

Posted on 24 February 2016 by VRS  |  Email |Print

A London court date has been set to resolve a long-running dispute over the leadership of Libya’s $67 billion sovereign wealth fund, potentially paving the way for litigation against two investment banks to move forward.
The Libyan Investment Authority (LIA) is mired in a power struggle between two would-be chairmen, Hassan Bouhadi and AbdulMagid Breish. A hearing will be held in the Commercial Court in the week beginning March 7, with the aim of determining which of the LIA’s two rival chairmen has the authority to bring litigation against Goldman Sachs and Societe Generale………………………………………..Full Article: Source

Khazanah and Temasek battle it out for bond investors

Posted on 24 February 2016 by VRS  |  Email |Print

Two of Asia’s rarest quasi-sovereign credits choose the same day to launch landmark bond deals on Tuesday, with a $750 million global sukuk issue from Malaysian sovereign wealth fund Khazanah Nasional Berhad and a €1.1 billion deal from its Singaporean counterpart Temasek.
Both deals were ground breaking transactions in their own right given that Khazanah was bringing its first straight dollar sukuk and Temasek has never issued in euros before. However, some market participants queried why Temasek decided to press the button on its deal knowing that Khazanah was already in the market………………………………………..Full Article: Source

Temasek launches dual tranche Euro bond offering

Posted on 24 February 2016 by VRS  |  Email |Print

Sovereign wealth fund Temasek Holdings intends to launch a dual tranche 6-year and 12-year bond offering under its US$15 billion Guaranteed Global Medium Term Note Program. The notes will be issued by Temasek Financial (I) Limited and will be fully, irrevocably and unconditionally guaranteed by Temasek.
The proceeds from the 6-year T2022-EUR Temasek Bond and a 12-year T2028-EUR Temasek Bond will be provided to Temasek and its investment holding companies to fund their ordinary course of business. Temasek has been assigned an overall corporate credit rating of AAA by Standard & Poor’s Ratings Services and Aaa by Moody’s Investors Service………………………………………..Full Article: Source

Khazanah returns to US$ bond market after 10 years

Posted on 24 February 2016 by VRS  |  Email |Print

Malaysia’s sovereign wealth fund Khazanah Nasional has returned to the US dollar bond market after 10 years. Bloomberg reported on Tuesday the issuer may price the US dollar bench 5Y bond, IPT +190bp area.
It said Khazanah was last in the US dollar market in 2006, when it sold a US$1bil 5.625% that matures on March 15. The wire report said the issuer met investors last month with Barclays, CIMB, MS, UBS. CIMB, DBS, StanChart are joint lead managers………………………………………..Full Article: Source

Appetite for bonds

Posted on 24 February 2016 by VRS  |  Email |Print

Reuters reported that sovereign wealth fund Khazanah is marketing a five-year US-dollar sukuk issuance. The report did not specify the amount that Khazanah intends to raise, but insiders reckon that the sovereign fund could be testing the market to see how much it could raise at rates amenable to it. CIMB, DBS and Standard Chartered are lead managers for the deal.
Going by one estimate, there could be as much as US$20bil (RM84.22bil) being raised by Malaysian entities, including the Government, Khazanah Nasional Bhd, Petroliam Nasional Bhd, Axiata Group Bhd and Telekom Malaysia Bhd, to name a few………………………………………..Full Article: Source

Swiss bank linked to 1MDB sold for US$1.3b

Posted on 24 February 2016 by VRS  |  Email |Print

EFG International AG has agreed to pay 1.33 billion Swiss francs (US$1.34 billion) for Grupo BTG Pactual SA’s Swiss private-banking unit BSI Ltd in a deal that could catapult it into the nation’s top-five money managers for the wealthy.
The acquisition, which comes five months after Brazil-based BTG Pactual (BBTG11.SA) sealed a deal to buy BSI for 1.25 billion francs, will be paid for in cash and stock. Under terms of the deal, EFG will incorporate BSI, making BTG Pactual the No 2 partner in the combined firm after Greece’s Latsis family………………………………………..Full Article: Source

Key executive management members of Korea’s KIC resign

Posted on 24 February 2016 by VRS  |  Email |Print

Heungsik Choo, the chief investment officer (CIO) of Korea’s sovereign wealth fund (SWF), Korea Investment Corporation (KIC), and two other executive management members have decided to step down. Choo joined the KIC as CIO in 2014. Prior to that, he was the head of the reserve management group at the Bank of Korea (BOK) from November 2011 to February 2014.
Young Kim, the SWF’s chief operating officer (COO), and Taeg Ki Hong, its chief risk and compliance officer, expressed their intention to resign from their positions on February 19, 2016. Kim joined the KIC as the head of the corporate planning and affairs group in 2007 and was promoted to COO in 2011……………………………………….Full Article: Source

With oil at $30-$40, SWFs may pull $404 bln from stocks in 2016

Posted on 24 February 2016 by VRS  |  Email |Print

Sovereign wealth funds (SWFs) might take a further $404 billion out of global listed equities in 2016 if oil prices stay between $30 and $40 a barrel, after pulling out about half that amount last year, a research organisation said on Monday.
The largest SWFs, accounting for about 89 percent of managed assets, sold $213.37 billion of listed equities in 2015, the Sovereign Wealth Fund Institute (SWFI) said, after an oil price crash triggered massive fund redemptions and relentless selling of foreign currency reserves by producers………………………………………..Full Article: Source

Sovereign Wealth Funds May Sell $404 Billion of Equities

Posted on 23 February 2016 by VRS  |  Email |Print

Sovereign wealth funds may withdraw $404.3 billion from global stock markets this year if crude prices stay between $30 to $40 per barrel as oil-rich nations seek to shore up their finances, according to the Sovereign Wealth Fund Institute.
The value of listed equities held by the world’s largest wealth funds will probably drop to $2.64 trillion this year, from about $3.04 trillion at the end of 2015, the Las Vegas-based SWFI said in an e-mailed report sent Monday. Withdrawals are set to approximately double from last year, when sovereign funds sold about $213.4 billion of equities, it said………………………………………..Full Article: Source

SWFs of oil-rich countries are selling stocks big time

Posted on 23 February 2016 by VRS  |  Email |Print

Sovereign wealth funds of oil-rich countries like Norway, Saudi Arabia, Russia and Qatar sold more than $213 billion worth of stocks in 2015, a report by Sovereign Wealth Fund Institute said. With oil prices staying low, the global sell-off is likely to continue in 2016. Wealth funds could withdraw more than $404 billion from global stock markets if oil prices remain between $30 and $40 per barrel this year, the SWFI said.
Crude prices collapsed more than 70% in the last 18 months. The plunge means many oil countries are facing growing holes in their budgets. Rather than raising taxes or cutting spending, many have resorted to tapping their rainy day funds………………………………………..Full Article: Source

Are $7 Trillion Sovereign Wealth Funds Behind Market Plunge?

Posted on 23 February 2016 by VRS  |  Email |Print

2016 has featured a poorly explained stock market plunge. Without a clear explanation, investors are at a loss about how to make intelligent decisions. If oil is the culprit, should investors buy now that OPEC and others are getting together to freeze production? If markets China’s slowing growth and debt woes are the cause, should they cheer now that China has replaced its markets regulator or will its markets continue to lurch awkwardly?
Since these stories are blasted around the world, it is hard to see how they could give an investor any advantage in trying to beat the market. I think that the real reason for market movements — the ebb and flow of capital to and from equities — is considered protected speech by securities regulators………………………………………..Full Article: Source

Sovereign Wealth Funds (SWF) are ready to get out of Dodge

Posted on 23 February 2016 by VRS  |  Email |Print

According to a report from the Sovereign Wealth Fund Institute (SW FI), SWFs - investors with more than $30 trillion at work around the world who invest on behalf of governments - aren’t going to keep all their money in this choppy market for much longer.
From the report: If oil prices remain in the US$ 30 to US$ 40 per barrel range, we predict a withdrawal of US$ 404.3 billion withdrawal from global listed equities, about twice the amount that left in 2015. We take into effect past behavior, government structure, the need for capital to lessen fiscal gaps and reporting lag times. Part of the estimate includes a prediction on how well assets will perform in 2016………………………………………..Full Article: Source

Sovereign wealth funds are ditching fund managers in their droves

Posted on 23 February 2016 by VRS  |  Email |Print

Bad news for the world’s big fund managers: they are being abandoned by sovereign wealth funds. In each of the five years to 2015 these state run funds (largely owned by oil producing companies) shovelled something in the region of $48bn into the markets via the big asset managers. Last year, they pulled over $46bn out.
That, said the head of one large fund management firm, was “very hard”. It’s about to get harder. Moody’s reckons the sovereign wealth funds will pull out the same again, plus another 25% this year “as oil-dependent funds increase redemptions from asset managers in order to plug fiscal deficits”. Norway alone says it is likely to pull out €8.4bn………………………………………..Full Article: Source

KIC’s alternative investments portfolio too small: report

Posted on 23 February 2016 by VRS  |  Email |Print

The proportion of alternative investments allocated by South Korea’s sovereign fund remains far lower than other state-controlled investment vehicles overseas, a report said Monday, raising concerns that it may have missed opportunities to generate higher returns.
According to Korea Economic Research Institute, Korea Investment Corp. has invested only 8 percent of its funds in real estate, private equity and infrastructure in 2014, significantly lower than other sovereign funds including China Investment Corp. which allocated 37.7 percent in the nontraditional sectors in the same year. Singapore’s GIC Pvt. Ltd. also managed 16 percent of its national wealth fund in alternative investments………………………………………..Full Article: Source

Khazanah bookbuilds for US dollar 5-year sukuk

Posted on 23 February 2016 by VRS  |  Email |Print

Malaysian sovereign wealth fund Khazanah Nasional Berhad is marketing five-year US dollar sukuk in the US Treasuries plus 190bp area. CIMB, DBS and Standard Chartered are lead managers for the deal that is expected to price.
The Reg S senior unsecured bonds will list in Malaysia and Singapore under English and Malaysian law. The sukuk will be issued through Danga Capital Berhad, a special purpose vehicle, with the SWF acting as obligor………………………………………..Full Article: Source

SOFAZ sells about $177M to Azerbaijani banks Feb. 22

Posted on 23 February 2016 by VRS  |  Email |Print

Azerbaijani state oil fund SOFAZ sold $177.45 million to 13 local banks through auctions held by Azerbaijan’s Central Bank (CBA) Feb. 22. “Despite that SOFAZ offered $200 million for sale through auctions, $177.45 million were sold to the banks,” the fund has said.
Thus, SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to Azerbaijani state budget, which are envisaged to stand at six billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Here’s How Sovereign Wealth Funds Can Save Yahoo

Posted on 23 February 2016 by VRS  |  Email |Print

The board of directors at Yahoo! Inc. made it public they formed an independent committee to begin looking at strategic alternatives for the fabled internet company. One such alternative is spinning off its core business. Yahoo announced that a new committee of directors would reach out to potentially interest parties and make recommendations on any proposed deals.
Assisting Yahoo in this strategic process are Goldman Sachs, JPMorgan & Chase and PJT Partners. Cravath, Swaine & Moore LLP was hired by Yahoo as a legal advisor regarding this situation. Yahoo continues to move forward on its plans to split its core business from its 15% stake in Alibaba Group. Yahoo’s CEO Marissa Mayer still believes the company can turn itself around……………………………………….Full Article: Source

Sovereign wealth funds pull at least $46.5bn from asset managers

Posted on 22 February 2016 by VRS  |  Email |Print

Asset managers suffered record outflows from sovereign wealth funds in 2015 and have been warned to expect even greater redemptions this year as the oil price collapse drives governments to raid their state-owned investment vehicles.
State funds pulled at least $46.5bn from asset managers in 2015 — far greater than the sovereign outflows recorded at the height of the financial crisis — in a bid to prop up their economies, according to figures given exclusively to FTfm by eVestment, the data provider………………………………………..Full Article: Source

Norway Central Bank Chief Warns on Oil Wealth as Coffers Raided

Posted on 22 February 2016 by VRS  |  Email |Print

Norway’s central bank governor stepped up his warning on excessive use of the nation’s oil income as he predicted the government may need to withdraw almost $10 billion from its massive wealth fund this year.
“The fall in oil prices will reduce Norway’s national wealth,” Norges Bank Governor Oeystein Olsen said Thursday in his annual speech in Oslo. With the $810 billion fund’s era of growth behind it and returns ahead uncertain amid a slowing global economy, “increased spending is not a viable path to follow.”……………………………………….Full Article: Source

Singapore wealth fund, Advent invest $350 million in QuEST Global

Posted on 22 February 2016 by VRS  |  Email |Print

Singapore sovereign wealth fund GIC Pte Ltd and private equity investors Advent International and Bain Capital have jointly bought a minority stake in engineering outsourcing firm QuEST Global Services for $350 million. QuEST, which provides services to companies in sectors including aviation, automobile, oil and gas, power and healthcare, is headquartered in Singapore but more than half of its staff are located in India.
The private equity funds bought the stake from a unit of Warburg Pincus LLC and other company shareholders, said QuEST, founded by former General Electric Co engineer Ajit Prabhu in 1997, in a statement………………………………………..Full Article: Source

Here’s why sovereign wealth funds are selling stocks

Posted on 22 February 2016 by VRS  |  Email |Print

The world’s capital markets have been roiled this year by rumors that sovereign wealth funds of oil-dependent states are selling foreign assets to redirect money home to plug budget deficits and repatriate capital. Some institutions, such as Malaysia’s large pension funds and the Saudi Arabian Monetary Agency, the kingdom’s central bank, are indeed answering calls by their governments to help bolster their domestic economies in different ways.
It appears, however, that the markets are also worried that major sovereign savings funds like the Abu Dhabi Investment Authority (ADIA) and the Kuwait Investment Authority may be major sellers of stocks, suggesting that they are pulling out of the markets because they are being called upon to fund government spending plans in the face of low oil prices………………………………………..Full Article: Source

Tata Capital in talks with Oman SGRF for realty fund

Posted on 19 February 2016 by VRS  |  Email |Print

Tata Capital, financial services arm of Tata Group, is in talks with Oman’s sovereign wealth fund, State General Reserve Fund (SGRF), to raise money for its real estate fund, said a source. The source added Tata Capital could raise as much as $300 million (Rs 2,000 crore) from the Oman fund but this could not be verified.
If it happens, it would be one of the largest in fund raising from an overseas entity in the country this year. Last year, Oman SGRF, with other investors, gave $375 mn to the offshore fund of HDFC Property Fund. Tata Capital was also in talks with large US investors but this did not finally go ahead, said sources. E-mails to Tata Capital and Oman SGRF did not get a response. Tata Capital is also looking to raise $900 mn across its two funds, Growth Fund and Opportunities Fund………………………………………..Full Article: Source

Bain, GIC, Advent buy $350m stake in Quest

Posted on 19 February 2016 by VRS  |  Email |Print

US private equity giant Bain Capital, Singapore’s GIC and Advent International have invested $350 million to buy minority stakes in Bengaluru-based engineering services company Quest Global.
The trio have completely bought out the shares held by global private equity firm Warburg Pincus that had invested $75 million in Quest for a 26% stake in 2010. Other sellers included some angel and minority investors. There was no fresh issue of shares, and therefore no infusion of funds into the company. TOI was the first to report the imminent deal in its edition on December 24 last year………………………………………..Full Article: Source

Future Fund: Oaktree bears brunt of $1bn cull

Posted on 19 February 2016 by VRS  |  Email |Print

US investment powerhouse, Oaktree Capital, has borne the brunt of the Future Fund’s recent $1 billion cull of its private equity portfolio as the nation’s sovereign wealth fund expands its cash holdings amid heightened ­concerns about the health of the global economy.
In a rare insight into the $118.4bn vehicle’s investment moves, The Australian can reveal that close to 3.5 per cent of the fund was allocated to Oaktree, although this exposure spanned the LosAngeles-based firm’s various alternative asset classes, which include distressed debt and high yield bonds. At the end of last year the Future Fund trimmed back this holding, skimming close to $500m from its near $4bn investment mandate with the firm………………………………………..Full Article: Source

Korea: Sovereign fund to increase investments in alternative assets

Posted on 19 February 2016 by VRS  |  Email |Print

The chief of the country’s sovereign wealth fund said Wednesday that he will increase its investments in alternative assets, such as real estate and infrastructure, as stocks are dropping sharply and bonds are yielding lower returns.
Eun Sung-soo, CEO of the Korea Investment Corp. (KIC), said the fund will make alternative investments account for 20 percent of its total investments by 2020, raising them from 12.4 percent last year. “We will increase our portion of alternative investments gradually as they are expected to give more returns in the long term,” said Eun at a luncheon meeting with journalists at the agency’s main office in Seoul………………………………………..Full Article: Source

Thailand’s $2.8b Future Fund may increase corpus. China’s CIC among potential investors

Posted on 19 February 2016 by VRS  |  Email |Print

The Thai government is looking to raise the corpus of the 100 billion baht ($2.8 billion) Thailand Future Fund (TFF), after overseas investors, including China Investment Corporation, expressed interest in investing in this vehicle, officials aware of the development said.
Thai government officials said several institutional investors had shown interest in committing capital towards this infrastructure fund, that is scheduled to launch later this year, with the most prominent being China Investment Corporation (CIC), the Chinese sovereign wealth fund responsible for managing part of that country’s foreign exchange reserves………………………………………..Full Article: Source

Norway to tap rainy day fund

Posted on 19 February 2016 by VRS  |  Email |Print

Norway’s central bank can continue to cut interest rates and the government should use short-term fiscal spending to lift the economy as the boom of the last two decades grinds to a halt, the country’s central bank chief said. He also said more than $9 billion would be taken from Norway’s sovereign wealth fund this year, the first net withdrawal from the rainy day account.
Economic growth in Norway, Western Europe’s top oil and gas producer, hit a six-year low in 2015 while unemployment rose to a 10-year high as the price of crude tumbled, Governor Oeystein Olsen said in his annual policy address to business leaders, politicians and academics………………………………………..Full Article: Source

Norway oil fund close to peak, uncertain returns ahead

Posted on 19 February 2016 by VRS  |  Email |Print

The size of Norway’s $810 billion sovereign wealth fund, the world’s biggest, may have peaked as oil prices collapsed and Oslo gets ready for its first net cash withdrawal, the central bank said.
Built from oil and gas revenues over a 20-year period, the fund is invested in foreign stocks, bonds and real estate to share the country’s hydrocarbon wealth with future generations and avoid creating asset bubbles at home. The fund’s rules allow the government to withdraw up to four percent of its value annually and its growth in previous years had always exceeded the level of withdrawals………………………………………..Full Article: Source

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