Sun, Apr 11, 2021
A A A
Welcome mteam
RSS

Sovereign Wealth Funds Briefing - Archive | April, 2016

Norway’s sovereign wealth fund posts $US10b quarterly loss

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $US870 billion sovereign wealth fund, the world’s biggest, returned to losses in the first quarter amid some of the most turbulent markets since the financial crisis as the government started withdrawals.
The Government Pension Fund Global lost 85 billion kroner ($US10 billion), or 0.6 per cent, after rising 3.6 per cent in the fourth quarter, the Oslo-based investor said on Thursday. Its stock portfolio lost 2.9 per cent, its bonds gained 3.3 per cent and the real-estate investments fell 1.3 per cent………………………………………..Full Article: Source

Norway’s sovereign wealth fund returns -0.6% in quarter; government makes first withdrawal

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s Government Pension Fund Global, Oslo, returned -0.6% in the quarter ended March 31, with assets falling 5.3% to 7.08 trillion Norwegian kroner ($848 billion) as market volatility hit, and the government withdrew money for the first time.
In a financial update Thursday, Norges Bank Investment Management, which runs the assets of the sovereign wealth fund, said the return was equivalent to an 85 billion Norwegian kroner loss. In the three months ended Dec. 31, returns were 3.5%, or 279 billion Norwegian kroner. Over the year ended March 31, assets increased 1%………………………………………..Full Article: Source

Norway’s wealth fund cautious on property deals

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund sees signs of declining prices in prime real estate markets around the world but not yet enough to trigger a buying spree, the fund’s head of real estate investments told Reuters.
The fund is seeking to step up its investments to 5 percent of the fund’s total value over time, from 3.1 percent currently. Since 2010 it has invested in Regent Street in London, Times Square in New York and the Champs-Elysees in Paris………………………………………..Full Article: Source

Norway’s Wealth Fund Doubles Money on Central London Properties

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $870 billion sovereign-wealth fund said the value of its first real estate investments, stakes in London’s Regent Street and a cluster of offices, shops and apartments nearby, more than doubled in value since they were purchased in 2011 and 2013.
The fund’s 25 percent holding in the Crown Estate partnership, which owns parts of the luxury shopping street and the Quadrant 3 development, is valued at 15.8 billion kroner ($1.9 billion), the world’s largest wealth fund said in a report……………………………………….Full Article: Source

Norway’s sovereign wealth fund hit by global stock turmoil

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $870bn oil fund recorded its third quarter of negative returns in the past year as weak stock markets from China to Europe weighed on its results. The world’s largest sovereign wealth fund had a negative return of 0.6 per cent in the first quarter, writes Richard Milne, Nordic correspondent.
Trond Grande, deputy chief executive of Norges Bank Investment Management, the oil fund’s manager, said: “The first two months of 2016 were characterised by high market volatility and concerns for a Chinese slowdown. The turbulence eased considerably in March.”……………………………………….Full Article: Source

Norway’s wealth fund: China growth will not slow down too harshly

Posted on 29 April 2016 by VRS  |  Email |Print

Norway’s $868-billion sovereign wealth fund, the world’s largest, does not expect the Chinese economy to come to an abrupt standstill, a senior official said on Thursday.
“There have been many discussions about the slowdown in growth (in China). There seems to be signs that it will not be too harsh a stop,” the fund’s deputy CEO, Trond Grande, said during a presentation of the fund’s first-quarter results. He added that the fund would remain a long-term investor in China………………………………………..Full Article: Source

Central Bank again becomes a buyer of Oil Fund’s currency, but not key buyer

Posted on 29 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today at the foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it has applied for sale of $50 million and sold $42.4 million through the auction.
“14 commercial banks ($32.4 million) and the Central Bank ($10 million) became the buyers,” the Fund said. At the previous auction on 26 April the Fund sold $34.9 million to the nine banks through auction. The Fund promises to continue selling currency through CBA auctions. In its turn, the Central Bank announced earlier the start of manat interventions………………………………………..Full Article: Source

How much would 5% of Saudi Aramco be worth?

Posted on 29 April 2016 by VRS  |  Email |Print

In 2005, McKinsey said Aramco was worth about $0.781 trillion. The Sovereign Wealth Fund Institute recently pegged its value at around $2.1 trillion. The Saudi deputy crown prince Mohammad bin Salman put the number at $2.5 trillion.
Mohammed al-Sabban, a Saudi former petroleum advisor, reckons even more - at least $10 trillion. But what is Saudi Aramco, the kingdom’s state-owned oil jewel, really worth? Salman talks of plans for a $2 trillion sovereign wealth fund, resting heavily on the transfer of ownership of the kingdom’s national oil company………………………………………..Full Article: Source

Vision 2030: Dawn of a new era

Posted on 29 April 2016 by VRS  |  Email |Print

At first sight, the Saudi Vision 2030 plan, unveiled this week by Deputy Crown Prince Mohammed bin Salman, seems to break with the Kingdom’s evolutionary approach. The implications of a radical realignment of the economy are profound.
The biggest headline change is the part-privatization of Aramco. The money raised will form the basis of the $2 trillion sovereign wealth fund. Other than this, the deputy crown prince’s plan in fact takes forward initiatives that have long been recognized. He has given concrete form to long-held ambitions………………………………………..Full Article: Source

Libya SWF case against Goldman Sachs back in London court on May 5

Posted on 29 April 2016 by VRS  |  Email |Print

A dispute between Libya’s $67 billion sovereign wealth fund and Goldman Sachs over advice given on trades made in 2008 will be back in London’s High Court on May 5, with amended court papers that emerged on Wednesday adding new details.
In the ongoing litigation, the Libyan Investment Authority (LIA) alleges the Wall Street bank advised the fund to invest some $1 billion in nine trades that it claims were unsuitable and ultimately worthless. At the time, Libya was still headed by Colonel Muammar Gaddafi, who was overthrown in 2011. The leadership of the LIA is currently being disputed by two rival chairmen……………………………………….Full Article: Source

Malaysia Central Bank Fines 1MDB for Non-Compliance, Ends Probe

Posted on 29 April 2016 by VRS  |  Email |Print

Malaysia’s central bank slapped a fine on 1Malaysia Development Bhd. and announced it was ending its investigation into the troubled state fund, drawing one line under months of probes of 1MDB’s finances.
1MDB failed to explain why it can’t send back some funds from overseas, and has until May 30 to pay the fine for non-compliance, the central bank said in a Thursday statement. Bank Negara did not specify the size of the fine or how much 1MDB was required to repatriate………………………………………..Full Article: Source

1MDB in Default: The Abu Dhabi Dispute and Debt in Contention

Posted on 29 April 2016 by VRS  |  Email |Print

1Malaysia Development Bhd. defaulted on a $1.75 billion bond this week. It missed a $50 million interest payment amid a dispute with Abu Dhabi’s sovereign wealth fund over who is required to make the payment.
The default is the latest episode in financial scandals that have rocked 1MDB, already a target of global investigations into allegations of money laundering and embezzlement. This is what you need to know about the disagreement with Abu Dhabi, the bonds in question and other borrowings:……………………………………….Full Article: Source

1MDB insists debt reduction plan still on course

Posted on 29 April 2016 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) is still on track to pay off its RM51 billion (S$17.6 billion) debt pile despite being locked in a dispute with an Abu Dhabi sovereign wealth fund, the state investor’s president Arul Kanda Kandasamy said.
1MDB signed a deal with Abu Dhabi’s International Petroleum Investment Company (IPIC) in May last year, with the Emirati firm involved in reducing the Malaysian fund’s debts by RM17 billion in return for financial assets………………………………………..Full Article: Source

Who will prevail in standoff between IPIC and 1MDB?

Posted on 29 April 2016 by VRS  |  Email |Print

1MDB was directed in writing by Abu Dhabi sovereign wealth fund International Petroleum Investment Company (IPIC) then managing director and Aabar Investment PJS chairperson - Khadem al Qubaisi and Mohamed Al Husseiny respectively - to transfer the money into Aabar Investment Ltd BVI.
The two men had the power to legally bind Aabar Investment PJS and the parent company, IPIC, to the transaction. 1MDB can claim to have made the payment in good faith based on the written instructions from the two most senior officers………………………………………..Full Article: Source

Kazakh Wealth Fund Eyes Tenge Debt, EBRD Loans as Economy Slumps

Posted on 28 April 2016 by VRS  |  Email |Print

Kazakhstan’s sovereign wealth fund is weighing asset sales, loans from the European Bank for Reconstruction and Development and a move into local-currency borrowing as it seeks to reduce its $17.3 billion debt load.
“We expect to gradually optimize our debt, but it’s complicated in the coming 12 months with the weak economy,” Yelena Bakhmutova, the managing director of Samruk-Kazyna, said by phone from the Kazakh capital, Astana. “The biggest challenge for us is the drop in business activity, the pace of gross domestic product growth.”……………………………………….Full Article: Source

Future Fund’s David Neal says low rates hurting growth

Posted on 28 April 2016 by VRS  |  Email |Print

Future Fund chief executive David Neal has warned that a prolonged period of ultra-low interest rates has reduced the probability of the fund achieving its long-term growth targets, while defending the fund’s big move into cash.
Mr Neal said the $117 billion sovereign wealth fund was not hiding under a blanket and still ran a “significantly risky” portfolio in an effort to meet its return target of the consumer price index plus 4.5 per cent………………………………………..Full Article: Source

GIC scoops up buys amid global downturn

Posted on 28 April 2016 by VRS  |  Email |Print

Sovereign wealth funds are having a tough time finding good investments amid the difficult economic environment, and Singapore’s GIC is no different. Stock market volatility and low yields across various other asset classes amid flagging global growth have combined to create a challenging environment for state investors.
But GIC is no stranger to buying when the outlook appears bleak, and its recent investments point to a willingness and ability to ride out short-term volatility with a view to potential long-term payoffs………………………………………..Full Article: Source

State funds Temasek, GIC revamping leadership to navigate volatile markets

Posted on 28 April 2016 by VRS  |  Email |Print

Singapore’s top state investment firms are shuffling senior management to help navigate choppy global markets. Investment firm Temasek Holdings Pte said on Tuesday that its Americas President Boon Sim is leaving as it appointed two new presidents in the latest management reorganization to help it navigate “challenging global times.”
GIC said last week it gave Group Chief Investment Officer Lim Chow Kiat the additional title of deputy group president as part of a leadership shuffle appointing seven managers to new roles……………………………………….Full Article: Source

Temasek Holdings reorganises to prioritise investment team

Posted on 28 April 2016 by VRS  |  Email |Print

Temasek Holdings has reorganised its senior management to refocus its investment team to cope with volatile markets. The reorganisation which sees the promotion of six investment professionals is a move by Temasek International (TI) chief executive Lee Theng Kiat to refine roles and set priorities.
Lee was promoted to his current post last September. Temasek on Tuesday said its organisation structure change is aimed at aligning the firm with its core priorities in these challenging global times………………………………………..Full Article: Source

Moody’s: 1MDB default raises contingent liability risks to sovereign

Posted on 28 April 2016 by VRS  |  Email |Print

State-owned fund 1Malaysia Development Bhd’s (1MDB) default has increased the probability that contingent liabilities, particularly through cross-defaults and an associated indemnity, will crystallise on Malaysia’s government balance sheet, a credit negative for the sovereign, according to Moody’s Investors Service.
In an issuer comment note today, Moody’s said the recent developments have increased the likelihood of the Malaysian government expending fiscal resources to pay the indemnity to Abu Dhabi sovereign wealth fund International Petroleum Investment Co (IPIC), but the risk remains contingent………………………………………..Full Article: Source

1MDB scandal: Malaysian government ultimately to pay for all of state fund’s obligations

Posted on 28 April 2016 by VRS  |  Email |Print

The Malaysian government, and eventually taxpayers, will have to foot all of 1Malaysia Development Berhad (1MDB) financial obligations, even though some of them have been guaranteed by Abu Dhabi sovereign fund International Petroleum Investment Co (IPIC). This is because the government had provided a back-to-back guarantee on IPIC’s guarantee.
Lawmaker Tony Pua who also sits on the multi-party parliamentary Public Accounts Committee, noted that the government’s debt-asset swap arrangement with IPIC indicated that the Ministry of Finance would indemnify IPIC of all its obligations including advances and interest payments on behalf of 1MDB………………………………………..Full Article: Source

Troubled Malaysian fund defaults on $1.75bn bonds

Posted on 28 April 2016 by VRS  |  Email |Print

Troubled Malaysian state investment fund 1MDB said yesterday it had defaulted on $1.75bn in company bonds after missing an interest payment, heightening fears of a market-rattling bailout of the scandal-hit company. The fund, founded in 2009 by Prime Minister Najib Razak, is teetering on the brink of collapse amid multiple investigations around the world into allegations that billions were looted from it.
1MDB, or 1Malaysia Development Berhad, released a statement saying it was “now in default” on the bonds after missing the $50mn interest payment. It blamed a dispute with Abu Dhabi’s sovereign wealth fund, the International Petroleum Investment Co (IPIC)………………………………………..Full Article: Source

1MDB insists debt reduction plan still on course

Posted on 28 April 2016 by VRS  |  Email |Print

1Malaysia Development Berhad (1MDB) is still on track to pay off its RM51 billion (S$17.6 billion) debt pile despite being locked in a dispute with an Abu Dhabi sovereign wealth fund, the state investor’s president Arul Kanda Kandasamy said.
1MDB signed a deal with Abu Dhabi’s International Petroleum Investment Company (IPIC) in May last year, with the Emirati firm involved in reducing the Malaysian fund’s debts by RM17 billion in return for financial assets………………………………………..Full Article: Source

Alibaba’s Ant Financial raises $5.8bn in largest private tech funding

Posted on 28 April 2016 by VRS  |  Email |Print

Ant Financial Services Group, the financial services affiliate of e-commerce giant Alibaba Group, closed the world’s largest private fundraising round for an internet company at $US4.5 billion ($5.8bn), valuing it at about $US60bn. It raised its latest funding round from a clutch of investors, including a Chinese sovereign wealth fund and the country’s biggest insurers.
Ant Financial has courted powerful Chinese state-owned firms in its outside fundraisings. In this round, it brought in new investors including $US740bn sovereign wealth fund China Investment’s CIC Capital and a subsidiary of state-owned China Construction Bank………………………………………..Full Article: Source

Libya fund accuses Goldman Sachs of breaching its own rules

Posted on 28 April 2016 by VRS  |  Email |Print

The brother of a top Libyan official who secured an internship at Goldman Sachs was paid a pro-rata salary of £36,000 plus a housing allowance — soon after the US bank carried out lossmaking trades on behalf of Libya’s sovereign wealth fund.
New details of the internship undertaken by Haitem Zarti, brother of Mustafa Zarti, the Libyan Investment Authority’s former deputy head, have been revealed in court documents as part of a $1bn legal battle between the Libyan Investment Authority and Goldman………………………………………..Full Article: Source

Sovereign wealth funds move into real estate amid volatile stock markets

Posted on 28 April 2016 by VRS  |  Email |Print

Real estate is now a prime play for sovereign wealth funds (SWFs) as equity markets remain unpredictable, said an analyst Wednesday. The Sovereign Wealth Fund Institute president Michael Maduell said, “They are looking for long-term investments where they can lock up their capital and not have to continually reinvest that capital.”
The institute analyzes investments by public asset owners such as SWFs and other long-term governmental investors. Vehicles such as pension funds and endowments are also increasing investing in real estate and infrastructure, he told CNBC’s “Squawk Box” on Wednesday………………………………………..Full Article: Source

GIC scoops up buys amid global downturn

Posted on 27 April 2016 by VRS  |  Email |Print

Sovereign wealth funds are having a tough time finding good investments amid the difficult economic environment, and Singapore’s GIC is no different. Stock market volatility and low yields across various other asset classes amid flagging global growth have combined to create a challenging environment for state investors.
But GIC is no stranger to buying when the outlook appears bleak, and its recent investments point to a willingness and ability to ride out short-term volatility with a view to potential long-term payoffs………………………………………..Full Article: Source

Temasek names 2 new presidents in management reshuffle

Posted on 27 April 2016 by VRS  |  Email |Print

State investment firm Temasek Holdings has appointed two new presidents in a management reshuffle to help it navigate “challenging times”. Mr Chia Song Hwee and Mr Dilhan Pillay have been promoted to presidents, joining president Gregory Curl, the firm said in a statement on its website on Tuesday (Apr 26).
Dr Fidah Alsagoff, Mr Michael Buchanan, Ms Png Chin Yee and Ms Juliet Teo have been appointed as senior managing directors. The appointments take effect on May 1. Temasek said it will also reallocate some functions across groups, such as bringing together its sector and market investment teams under a single investment group, creating a new portfolio strategy and risk group as well as a sustainability and stewardship group………………………………………..Full Article: Source

Temasek revamps leadership ranks amid volatile markets

Posted on 27 April 2016 by VRS  |  Email |Print

Singapore’s sovereign wealth funds are shuffling senior management to help navigate choppy global markets. Temasek Holdings said Tuesday that Boon Sim, its Americas president, is leaving as it appointed two new presidents in the latest management reorganization to help it navigate “challenging global times.”
GIC said last week it gave Lim Chow Kiat, group chief investment officer, the additional title of deputy group president as part of a leadership shuffle appointing seven managers to new roles………………………………………..Full Article: Source

Temasek Restructures, Loses Americas Chief

Posted on 27 April 2016 by VRS  |  Email |Print

Singapore sovereign fund Temasek International is reorganizing its management structure to prepare for “challenging global times,” the fund announced Tuesday. The S$266 billion (US$197 billion) fund said it has appointed Chia Song Hwee and Dilhan Pillay—current joint heads of investments—as presidents.
Dilhan will also take over as head of Americas from Boon Sim, who will be leaving May 1 after four years, Temasek confirmed. Boon—who previously led Credit Suisse’s global mergers and acquisition team—will continue as an advisor, mainly helping to build the fund’s US presence………………………………………..Full Article: Source

Malaysia’s 1MDB in default as Abu Dhabi dispute escalates

Posted on 27 April 2016 by VRS  |  Email |Print

Malaysia’s 1MDB defaulted on a $1.75bn bond on Tuesday, triggering cross defaults on two other notes totalling $1.9bn and raising the stakes in a dispute between the troubled state investment fund and an Abu Dhabi counterpart.
The fund’s announcement that it had failed to make an interest payment of $50m on 5.75 per cent bonds prompted a fall of as much as 1.2 per cent in the ringgit and dented investor confidence in Malaysian sovereign debt, with the cost of insuring against default with credit-default swaps rising 4 basis points to 167bp………………………………………..Full Article: Source

Malaysia’s Reputation Takes Another Hit as State Fund Defaults

Posted on 27 April 2016 by VRS  |  Email |Print

The Malaysian government’s reputation took another hit on Tuesday after state-owned 1Malaysia Development Bhd. defaulted on a $1.75 billion bond. The ringgit fell and 1MDB’s dollar debt slumped.
The development fund withheld a $50 million coupon payment amid a wider dispute with Abu Dhabi’s International Petroleum Investment Co., the co-guarantor of the bonds. The missed payment triggered cross defaults on 7.4 billion ringgit ($1.9 billion) of 1MDB debt, including borrowings that are guaranteed by the Malaysian government, the fund said in a statement on Tuesday………………………………………..Full Article: Source

Najib Razak 1MDB scandal: Malaysia’s troubled state investment fund defaults on bonds

Posted on 27 April 2016 by VRS  |  Email |Print

Troubled Malaysian state investment fund 1MDB says it has defaulted on $US1.75 billion ($2.27 billion) in bonds it issued after missing an interest payment, raising fears of financial-market fallout from the scandal-tainted company.
The fund, founded in 2009 by Malaysian Prime Minister Najib Razak, who remains the chair of its advisory board, is teetering on the verge of collapse amid multiple investigations around the world into allegations that billions were looted from it………………………………………..Full Article: Source

Ringgit Declines for Fourth Day as 1MDB Default Drags on Stocks

Posted on 27 April 2016 by VRS  |  Email |Print

The ringgit fell for a fourth day in its longest stretch of losses since November and stocks dropped to a six-week low as troubled state investment company 1Malaysia Development Bhd. confirmed it’s in default after missing an interest payment on bonds.
The company is withholding a $50 million payment on $1.75 billion of dollar notes amid a dispute with International Petroleum Investment Co., Abu Dhabi’s sovereign wealth fund that is the co-guarantor of the bonds maturing in 2022, according to an e-mailed statement. The deadline was on Monday………………………………………..Full Article: Source

Malaysia’s 1MDB Scandal Confirmed Investment Funds Defaults on US $1.75 Billion Bond

Posted on 27 April 2016 by VRS  |  Email |Print

Malaysia’s 1Malaysia Development Berhad (1MDB) confirmed on Tuesday, April 26 that the non-payment of US$ 50.3 million (S $ 68.1 million) in interest over a now defaulted US $ 1.75 billion bond had resulted in cross-defaults for RM 7.4 billion (S $ 2.6 billion) in other bonds.
The failure to pay interest that is due on Monday, April 25 arose due to a dispute with International Petroleum Investment Company (IPIC), an Abu Dhabi state-owned sovereign wealth fund, which had guaranteed two US $ 1.75 billion 1MDB funds due in 2022………………………………………..Full Article: Source

Saudi Arabia plans $2tn sovereign wealth fund in move away from oil

Posted on 27 April 2016 by VRS  |  Email |Print

Saudi Arabia said it would create the world’s largest wealth fund and sell shares in state energy giant Aramco as it unveiled a vast plan to transform its oil-dependent economy. Prince Mohammed said part of the plan is ”to sell less than five per cent of Aramco” in an initial public offering (IPO), valuing the company at between US$2tn and US$2.5tn.
Part of the funds from the share sale, Mohammed said, will be used to set up a US$2tn sovereign wealth fund (SWF), which would easily surpass Norway’s US$865bn fund as the world’s biggest. SWFs are used commonly as investment arms for oil-dependent nations seeking to diversify revenue streams, and are among the world’s largest institutional investors………………………………………..Full Article: Source

Saudi Arabia Can’t Quit Oil

Posted on 27 April 2016 by VRS  |  Email |Print

Saudi Arabia announced the seemingly impossible. The world’s largest oil producer and owner of an oil company reportedly worth more than $2 trillion, is going to kick its fossil fuel habit, Deputy Crown Prince Mohammed bin Salman said.
“We have developed a case of oil addiction in Saudi Arabia,” he told al-Arabiya television news channel, after officially unveiling a plan whose key parts had already been carefully released. Forty percent of the kingdom’s GDP and a whopping 90 percent of the government’s revenue comes from oil………………………………………..Full Article: Source

Is Saudi Arabia the next failed state?

Posted on 27 April 2016 by VRS  |  Email |Print

Saudi Arabia has been a hot bed of bad news recently. First, there was their horrifying war in Yemen, then their empty threat to start selling off U.S. debt. Most recently, the 30-year-old Deputy Crown Prince Mohammad bin Salman, who heads the Saudi Council for Economic and Development Affairs (and also serves as defense minister) laid out a new plan, dubbed “Vision 2030,” to transition the country away from selling oil.
While it may sound positive — vision! less oil! — the plan is actually pretty ominous. And without oil, the Saudi state has little else holding it together. The result could be yet another chaotic failed state in the Middle East — and this time in the home of Islam’s holiest sites………………………………………..Full Article: Source

Azerbaijan’s Central Bank buys $30M from State Oil Fund

Posted on 27 April 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $4.9 million to five banks through the auction held by the Central Bank of Azerbaijan (CBA), SOFAZ’s message said Apr. 26. Meanwhile, the CBA, which obtained $30 million, has become for the first time one of the buyers of SOFAZ’s currency resources.
SOFAZ offered $50 million for sale through the auction, according to the message. SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Saudi Arabia to sell less than 5% of Aramco, create $2 trillion fund

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia said Monday it would create the world’s largest wealth fund and sell shares in state energy giant Aramco as it unveiled a vast plan to transform its oil-dependent economy.
The announcement of the long-term reform programme, dubbed “Saudi Vision 2030″, marks the beginning of a hugely ambitious attempt to move Saudi Arabia beyond oil, the backbone of its economy for decades, amid a steep fall in prices………………………………………..Full Article: Source

Saudi Arabia’s growth plan: 0% income tax and a giant wealth fund

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia has no plans to introduce income tax any time soon, despite the damage done to its finances by the oil price crash. The kingdom made clear Monday that taxes on income or basic goods are not part of its 15-year strategy for breaking the economy’s dependence on oil.
Riyadh’s has outlined an ambitious plan to create a huge sovereign wealth fund, which will invest at home and abroad to diversify the economy and create new revenue streams for the government. It says the fund will be worth 7 trillion riyals ($1.9 trillion) by 2030. That’s more than double the size of Norway’s sovereign wealth fund, the world’s biggest………………………………………..Full Article: Source

Everything in play for Saudi wealth fund

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia’s cabinet has approved a sweeping package of reforms aimed at modernising the kingdom’s economy while cutting its heavy dependency on oil. Deputy Crown Prince Mohammed bin Salman, 31, set out the plans in Vision 2030, a blueprint for the nation’s future published.
It proposed the creation of the world’s biggest sovereign wealth fund by floating a stake of less than 5 per cent in Saudi Aramco, the state oil producer, plus a string of tax rises and spending cuts designed to boost efficiency and trim government waste………………………………………..Full Article: Source

What’s In Saudi Arabia’s Blueprint for Life After Oil?

Posted on 26 April 2016 by VRS  |  Email |Print

Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman unveiled his “Saudi Vision 2030” to reduce the kingdom’s reliance on oil. The blueprint, approved by King Salman, includes plans to sell less than 5 percent of Saudi Arabian Oil Co., or Aramco, the creation of the world’s largest sovereign wealth fund and raising non-oil revenue.
Here’s a guide to the main elements of the plan, announced on Monday in Riyadh and during Prince Mohammed’s interview with Saudi-owned Arabiya television. The prince had disclosed some of the proposals in two interviews with Bloomberg News………………………………………..Full Article: Source

Abu Dhabi Fund Prepared to Pay Interest if Malaysia’s 1MDB Defaults on Bond

Posted on 26 April 2016 by VRS  |  Email |Print

A partner of troubled Malaysian government investment fund 1Malaysia Development Bhd. said Monday it would pay $50 million in overdue interest owed on a 1MDB bond, but only after the bond is declared in default. The default could trigger further defaults on billions more in debt.
The partner, Abu Dhabi sovereign-wealth fund International Petroleum Investment Corp., is a guarantor of the $1.75 billion bond privately issued by 1MDB in 2012, and will pay the interest under those obligations, IPIC said in a filing to the London Stock Exchange………………………………………..Full Article: Source

Abu Dhabi’s IPIC to Make 1MDB Bond Payment in Event of Default

Posted on 26 April 2016 by VRS  |  Email |Print

Abu Dhabi’s sovereign wealth fund said on Monday it will pay bondholders of Malaysia’s troubled investment company should the latter default on an interest payment of $50 million.
International Petroleum Investment Co., which is the co-guarantor for $1.75 billion of 1Malaysia Development Bhd. bonds maturing in 2022, said it will pay the coupon if 1MDB fails to do so when the grace period expires Monday, according to a filing to the London Stock Exchange. The payment was due at midnight on April 18 in New York………………………………………..Full Article: Source

1MDB in default, declares Gulf fund

Posted on 26 April 2016 by VRS  |  Email |Print

State-owned 1Malaysia Development Berhad (1MDB) was declared in default yesterday after it failed to settle a US$50.3 million (S$68 million) debt payment on billions of dollars in bonds guaranteed by an Abu Dhabi state-owned sovereign wealth fund which, for its part, said it would honour its obligations to bond holders.
The declaration of default against 1MDB by Abu Dhabi’s International Petroleum Investment Corp, or IPIC, immediately exposes Prime Minister Najib Razak’s government to more than US$6.481 billion in debt owed to the Gulf emirate………………………………………..Full Article: Source

Singapore’s GIC to acquire stake in transmission utility ITC for $1.23B

Posted on 26 April 2016 by VRS  |  Email |Print

Singapore-based sovereign wealth fund GIC has signed an agreement with North American electric and gas utility Fortis to acquire 19.9% of independent transmission utility ITC for $1.23 billion. The agreement follows a deal signed by Fortis in February to acquire all of ITC for roughly $11.3 billion, Kallanish Energy reports.
“Given the high quality transmission platform ITC offers, the strength of the Fortis management team, and GIC’s long-term approach to infrastructure investing, we look forward to a successful transaction and partnership,” said Rhys Evenden, head of North American Infrastructure for GIC………………………………………..Full Article: Source

New Zealand Superannuation Fund divests interests in 3 offshore funds

Posted on 26 April 2016 by VRS  |  Email |Print

New Zealand Superannuation Fund, New Zealand’s sovereign wealth fund (SWF), has divested its interests in three offshore private equity (PE) funds with, with the consideration and buyer kept confidential. The sales was reported by New Zealand publication Scoop News.
Based on figures from its website, the NZ Super Fund claims to maintains a capitalisation of assets under management (AUM) worth NZ$29.6 billion (US$20.35 billion), with a rate of return per annum after costs and before taxes of 9.44 per cent, as of 31 March 2016………………………………………..Full Article: Source

Samruk Kazyna’s 2016 net income seen plunging on low oil price, weak demand

Posted on 26 April 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk Kazyna’s net income grew in 2015 but is forecast to nosedive this year, trailing low oil prices and weakening demand in major trading partners Russia and China, the company said on Monday.
Samruk’s net income increased by 30 percent to 304.8 billion tenge ($913.78 million) last year, due mainly “to the positive effect of exchange rate differences”, the fund said, referring to the sharp devaluation of the tenge in 2015. The fund’s net income is expected to fall sharply to 100.8 billion tenge this year………………………………………..Full Article: Source

Norway boosts withdrawals from sovereign wealth fund

Posted on 26 April 2016 by VRS  |  Email |Print

Norway increased withdrawals from the nation’s wealth fund again in March, running ahead of estimates made by the central bank just two months ago. The government withdrew 7.4 billion kroner ($898 million), according to monthly data published by Norwegian Government Agency for Financial Management. That’s up from 6.7 billion kroner in each of the first two months of the year, bringing the year-to-date withdrawals to 20.8 billion kroner.
At the faster pace, full-year withdrawals would top an estimate of 80 billion kroner given in February by the central bank governor, who oversees the $860 billion fund. The government of western Europe’s biggest crude producer is dipping into its piggy bank to meet budget needs amid plunging oil prices………………………………………..Full Article: Source

banner
banner
banner
banner
April 2016
M T W T F S S
« Mar   May »
 123
45678910
11121314151617
18192021222324
252627282930