Sovereign Wealth Fund Institute

The press release states, “Temasek Financial (II) Private Limited (“TFin-II”) has established a US$5 billion Euro-commercial Paper (“Temasek ECP”) programme, fully and unconditionally guaranteed by Temasek Holdings (Private) Limited (“Temasek”).

The Temasek ECP programme adds flexibility to Temasek’s short-term funding options. It complements Temasek’s existing long-term US$10 billion Guaranteed Global Medium Term Note (“MTN”) programme, which was first launched in 2005 as a public marker of Temasek’s credit quality, and further broadens Temasek’s stakeholder base.”

Source: Temasek Holdings

According to Market Watch, “a senior official with China’s massive sovereign-wealth fund said Tuesday that while 2009 was good for the nation’s market investments, this year is proving to be tough, according to reports.

In rare public comments, China Investment Corp.’s Executive Vice President Jesse Wang said recent corrections in Western markets had peeled off one-tenth of the fund’s value.

“In May and June, because of the decline of the U.S. market and European market, we had about 10% mark-to-market losses,” Wang was quoted as saying at an event hosted by the Federal Reserve Bank of San Francisco.

The recent drop compared to gains for 2009, which Wang called “a good year for us,” as CIC managed a return of 11% overall and more than 17% if results from its domestic arm Central Huijin Investment Ltd. are excluded, according to Reuters.

Official 2009 results for CIC, which has approximately $300 billion under management, are slated for release sometime in the next two months.

Wang said that while CIC had hope bonds and other fixed-income holdings would shield it from volatility, this portfolio was hit by the euro’s fall against other major currencies, according to Dow Jones Newswires.

Read more: Marketwatch

Bloomberg reports that, “France’s sovereign wealth fund may spend 900 million euros ($1.3 billion) before the end of the year and increase aid to the auto industry in 2010, as the recession batters companies’ finances. The 20 billion-euro investment pool, set up last year by President Nicolas Sarkozy, may provide capital to suppliers of Airbus SAS and Safran SA and open a fund for smaller companies, said Gilles Michel, managing director of the fund.

‘The effect of the crisis on companies is worsening,’ Michel said in an interview in Paris late yesterday. ‘Many companies are facing financial pressure.’

The fund, created last year to protect companies the government considered strategic from “foreign predators,” has spent almost 600 million euros so far this year, meaning total investment may reach 1.5 billion euros in 2009. French gross domestic product may shrink 3 percent this year, the most since 1949, the national statistics agency estimates.”

read more: Bloomberg