Weekly Digest: CIC, PIF talk Saudi push; Temasek increases India bull run
TOP NEWS OF THE WEEK
China Investment Corporation's (CIC) chairman Peng Chun met with Yasir Al-Rumayyan, governor of the Public Investment Fund (PIF) in Beijing, CIC said on July 12.
They exchanged views on topics including China-Saudi Arabia economic and trade ties, investment opportunities in Saudi Arabia, cooperation on multiple fronts between CIC and PIF, etc.
Source: China Investment Corporation
The mayor of Beijing told PIF Governor Yasir Al-Rumayyanthat he hoped the fund would further expand its cooperation with the Chinese capital in areas such as industrial investment, green development, and energy transition, while guiding enterprises in both places to carry out two-way investment.
The mayor, Yin Yong met the PIF chief at a meeting on July 9.
Source: Beijing Daily
Temasek plans to invest up to $10 billion in India over three years in sectors such as financial services and healthcare, a top executive said on July 15.
India's economy is growing sharply, and its stock markets are trading near record highs amid an IPO and dealmaking boom. India accounts for 7% of Temasek's global exposure which it wants to increase further, said Mohit Bhandari, the company's managing director for India investments.
Source: Reuters
This brief has been updated based on the source accordingly.
OTHER INVESTMENT NEWS
CHINA
The Asian Infrastructure Investment Bank (AIIB) has signed a $75 million financing contract to support green and blue bonds to be issued by Southeast Asia Commercial Joint Stock Bank (SeABank). This marks the first-ever blue bond issued from Vietnam and is also AIIB’s first investment in a blue bond.
The project is expected to further strengthen SeABank’s strong capital base to expand financing for sustainable economic activities linked to water and the sea. It is also expected to grow green assets such as green buildings, renewable energy and energy efficiency.
Source: Asian Infrastructure Investment Bank
JAPAN
Japan’s public pension funds holding about ¥90 trillion ($566 billion) in assets are set to get more active in making ESG investments after signing the United Nations-backed Principles for Responsible Investment (PRI).
So far this year, six funds have signed the non-binding statement, including the National Pension Fund Association, which oversees about ¥4.6 trillion in assets.
Since June, three funds including those holding police and public school retirement money became signatories.
Source: Bloomberg
The Government Pension Investment Fund’s (GPIF) holdings of government bonds increased 25% to ¥50.3 trillion ($311 billion) in the fiscal year ended March 31, according to Bloomberg analysis of data from the fund released last week.
This happened just as the proportion of the nation’s treasury bills, non-government debt and a currency-hedged foreign debt in its portfolio all fell.
While the GPIF’s holdings of government bonds are less than a tenth of the Bank of Japan’s (BOJ), the fund’s tendency to buy on dips helps limit losses in the fixed-income market, especially when it’s weighed down by concern over a rapid decrease in the BOJ’s debt buying.
Source: Bloomberg
KOREA
The National Pension Service (NPS) hired four asset management firms for domestic private equity management, banking industry sources said on July 15. The four firms are MBK Partners, JKL Partners, Praxis Capital Partners, and Premier Partners.
The pension fund will commit a combined W1 trillion won ($723.2 million) to the four managers, compared with W800 billion to three investment firms last year. The new commitment comprises W100 billion-W350 billion to each manager.
The pension scheme will hire more alternative asset managers in Korea, pick three firms for credit and distressed debt in September and four venture capital companies in November.
Source: Korea Economic Daily
Korea has filed an appeal against a ruling by a Hague-based arbitration court ordering it to pay $32 million to a US hedge fund to compensate for its intervention in the merger of two Samsung affiliates in 2015, the Justice Ministry said July 11.
Mason Capital argued that the Korean government exercised its influence over the National Pension Service’s decision to green-light the $8-billion merger of two Samsung affiliates, Samsung C&T and Cheil Industries, in 2015. The hedge fund’s investors, as a result, suffered losses, as the unfair intervention led to a drop in the stock value of Samsung C&T, according to Mason Capital.
Source: Korea Herald
The stock valuation in the National Pension Service (NPS) portfolio came to a combined W155.9 trillion ($112 billion) in the April to June period, up W9.3 trillion from the previous quarter, data showed July 10.
Data from FnGuide, a financial data service provider, showed the NPS had at least 5% stakes in each of 283 listed firms as of July 8. The combined holdings of nearly W156 trillion is up from W146.6 trillion in valuation in 276 listed firms in the January to March period.
Source: Korea Times
The Public Officials Benefit Association (POBA) is set to commit W150 billion ($108.5 million) in preferred stocks for offices in Seoul and Pangyo, considered Korea’s tech hub, on expectations that the value of preferred shares will rise when interest rates decline.
The retirement fund for Korean provincial government officials has decided to commit to Seoul-based Koramco REITs Management and Trust Co. for preferred stocks with at least 6% of annual dividends for 10 years, people familiar with the matter said on July 8.
Source: Korea Economic Daily
SINGAPORE
Temasek-backed 65 Equity Partners has invested S$100 million ($74.15 million) into Singapore-headquartered regional advanced manufacturing service company Hi-P International, the latter company said in a statement on July 9.
The Singapore-based investment firm made the fresh capital injection to Hi-P International through its Local Enterprise Fund, which is a S$1 billion joint fund with the Singapore government and led by its trade and industry ministry, the statement said, without disclosing further financial details of the deal.
Source: Hi-P International
Seviora Holdings, an asset management firm owned by Temasek, plans to buy a minority stake in private credit fund ADM Capital, according to a statement.
The partnership will provide clients of Seviora and ADM Capital access to a broader range of products across the private credit spectrum.
The move comes as Seviora expands and enhances its private credit offering across the region, the statement said, without giving details. The partnership, subject to regulatory approvals, is expected to be completed in the fourth quarter.
Source: Seviora
TAIWAN
Taiwan’s Private School Teachers Fund announced a tender for a global investment consultant as the contract with its existing investment adviser Capital Investment Trust is set to end later this year.
Managers bidding on the mandate must be locally registered. They need to have at least 10 locally approved funds with a minimum of NT$50 billion ($1.53 billion) in total assets, the pension fund says in a request for proposals on July 9.
Source: Private School Teachers Fund
The above briefs were curated from company news releases and third-party sources.