Sovereign Wealth Fund Institute » Temasek Holdings

Temasek Creates SWE to Invest in North Asia

Web Director — Tue, 03 Jan 2012 17:26:48 +0000

Singapore’s Temasek Holdings is stepping up investment activity in the North Asia region. It created Pavilion Capital Pte, a wholly owned company to invest in closely held companies and will focus on small and medium enterprises in China. The new entity will be run by Tow Heng Tan, its former chief investment officer and senior managing director (Investments) of Temasek Holdings covering initiatives for direct investments.. Mr. Tow Heng Tan joined Temasek Holdings in 2002 and became the chief investment officer in October 2007.

By creating this sovereign wealth enterprise, it will give Temasek additional organizational flexibility to access direct company stakes the region.

According to a statement sent out by Temasek Holdings regarding Pavilion, is that it will “complement and expand our coverage and capacity for North Asia, including China.”

Temasek Holdings Raises 500 SGD in Capital Through Exchangeable Bonds

Web Director — Sat, 10 Dec 2011 17:08:45 +0000

On December 8, Singapore’s Temasek Holdings raised 500 million in SGD from the sale of 2-Year zero coupon bonds. These bonds are exchangeable into shares of Hong Kong-listed supply chain manager Li and Fung. Temasek has issued exchangeable bonds through its holdings in Standard Chartered Bank shares.

Temasek Holdings Invests in Round in Portola Pharmaceuticals

Web Director — Tue, 22 Nov 2011 16:51:02 +0000

Singapore’s Temasek Holdings along with other investors invested a round of US$ 89 million in Portola Pharmaceuticals via preferred equity. Portola Pharmaceuticals is a San Francisco biotech company that is working on an anti-clotting drug called betrixaban. This financing is for pushing the development through its Phase III betrixaban trial. Eight months ago Merck dropped its collaborative efforts with Portola Pharmaceuticals. Temasek Holdings has been an active investor in venture capital investments in the Silicon Valley.

Temasek Holdings to Raise S$800 Million

Web Director — Tue, 18 Oct 2011 21:36:56 +0000

Temasek Holdings could raise up to S$ 800 million (US$ 632 million). The debt raise is through a combination of S$ 650 million in zero coupon guaranteed exchangeable bonds due 2014 and a greenshoe option to increase the size of the issue by an additional S$ 150 million.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Temasek Holdings Invests Further in Alibaba Group

Web Director — Mon, 26 Sep 2011 17:18:51 +0000

Jack Ma

Temasek Holdings is an existing shareholder in the Alibaba Group. DST Global, Yunfeng Capital, Silver Lake, and Temasek Holdings are participating to invest in the Alibaba Group. Alibaba Group is one of China’s biggest e-commerce companies. The key objective of the investment is to provide liquidity to Alibaba’s employees. It is said the amount of stock from Alibaba employees that was being purchased is around US$ 1.6 billion. More and more internet companies are using private investment rounds to let employees cash out shares.

Citic Securities Capital Raise Attracts Sovereign Wealth Funds

Web Director — Mon, 19 Sep 2011 22:01:42 +0000

Citic Securities is planning to list in Hong Kong by October 6th. The securities company is the largest in China by market value. Sovereign wealth funds have been investing in Chinese financial firms and banks for quite some time. Earlier we saw tremendous sovereign investor interest in the IPO of Agricultural Bank of China. In this current environment, capital raising deals present many challenges to companies.

In getting a billion dollar plus corporate capital raise deal done, cornerstone investors involving sovereign wealth funds are almost a necessity.

Citic Securities has already fortified six cornerstone investors. These include the sovereign wealth funds of Temasek Holdings and the Kuwait Investment Authority. Including BTG Pactual SA which has received SWF investment in the past, the six cornerstone investors plan to purchase US$ 850 million in stock, or at least 44% of the offered shares.

Temasek Holdings Invests in NA Natural Gas Fuel Provider

Web Director — Thu, 25 Aug 2011 19:46:25 +0000

The market adoption of natural gas as a source for vehicle fuel is growing rapidly in the world. Natural gas fueling services are positioned to propagate in the United States and Canada. In North America, Clean Energy Fuels Corporation is a major provider of natural gas fuel for transportation.

The company has operations in LNG and CNG vehicle fueling. Three investment entities, including Temasek Holdings have agreed to invest US$ 150 million in the company through the form of 7.5% convertible notes due in 2016. Notes will be convertible to shares of common stock at US$15.00 per share. The other major investor in this deal is RRJ Capital founded by Richard Ong. Earlier in April 2011, Temasek Holdings partnered with RRJ Capital on a deal to take a large controlling stake in Frac Tech Holdings.

Deal Investors:

Springleaf Investments Pte. Ltd – Sovereign Wealth Enterprise of Temasek Holdings
Lionfish Investments Pte Ltd – Subsidiary of Seatown Holdings International Pte. Ltd
Greenwich Asset Holding Ltd – Subsidiary of RRJ Capital Master Fund I, L.P.

“This investment by Temasek, Seatown and RRJ demonstrates their confidence in the opportunity for fueling natural gas vehicles as well as in Clean Energy’s position as the leader in growing this market,” said Andrew J. Littlefair, President and CEO of Clean Energy. “Our development program for fueling station-building is expanding rapidly and we welcome the support provided by the funds.”

Source: Press Release

Temasek Chinese Bank JV Moves Forwards with Rural Banks

Web Director — Thu, 18 Aug 2011 09:18:15 +0000

BOC Fullerton Community Bank is a joint venture between the Bank of China Ltd and Fullerton Financial Holdings. Fullerton Financial Holdings is a sovereign wealth enterprise of Temasek Holdings. Temasek and other sovereign wealth funds are investing in the Chinese financial sector as the middle class continues to grow in China. The joint venture is planning to create 20 to 30 rural banks. According to senior executives this will occur before the end of 2011.

The Chinese banking industry is expanding access to capital for rural communities. Loans are for small business owners, medium-sized enterprises, farmers, and individuals. Each rural bank is operating under the BOC Fullerton Community Bank banner but is fully independent.

On March 4, 2011, the first community bank opened under the JV banner. It was in Qichun county which has just under 1 million people. It had registered capital of RMB 30 million.

Mapletree Purchases Hong Kong Mall for $2.4 Billion

Web Director — Mon, 01 Aug 2011 22:52:18 +0000

Office rental rates in Hong Kong’s central district are at record levels. Hong Kong retail space is relatively expensive compared to other Asian core office markets and ranks close to New York City in retail rent pricing. In addition, Hong Kong attracts a large audience of tourists from mainland China. While many sovereign funds involved with real estate seek core European and American real estate as attractively priced, a number of sovereign funds have sought out Asian real estate deals. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Temasek Holdings Maintains Confidence in AgBank

Web Director — Wed, 13 Jul 2011 22:33:19 +0000

Chinese state media reports that Temasek Holdings has no intention of reducing its position in the Agricultural Bank of China. Temasek Holdings, Kuwait Investment Authority, Qatar Investment Authority, and other governmental investors were cornerstone investors in Agricultural Bank of China’s $21 billion initial public offering. The bank is China’s third largest lender and they made a net profit of 45.8 billion yuan in the first half of 2010. Profits are rising for this bank by the growth in fee & commission income and widening net interest margin.

Temasek Holdings recently sold large stakes in the Bank of China Ltd and China Construction Bank Corp. Temasek Holdings wanted to manage exposure to the Chinese banking system, especially after Moody’s cautioned of a potential ratings downgrade for Chinese banks.

Bank Stats

Period	Net Interest Income (USD Millions)
3/31/2011	10,770.25
12/31/2010	10,338.71
9/30/2010	9,312.98
6/30/2010	8,576.40