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1MDB to Purchase Tanjong’s Power Assets

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The Government of Malaysia wholly owns 1 Malaysia Development Berhad (1MDB) a strategic development enterprise. The entity is funded by debt guaranteed by the Malaysian federal government. 1MDB is planning to buy Tanjong Energy Holdings for RM 8.5 billion (US$ 2.82 billion). Energy infrastructure assets are in high demand for large state-owned enterprises and sovereign investors. Power generating assets can provide steady cash flow. They are however dependent on state-awarded concessions and power purchase agreements. IMDB beat out a number of international bidders including the Saudi Water & Electric Co.

Tanjong Energy owns and operates nine power plants in:

  • Bangladesh
  • Egypt
  • Malaysia
  • Small JVs in Sri Lanka, Pakistan, and the United Arab Emirates

Tanjong’s power assets create about RM1 billion in annual earnings with about 50% derived from Malaysian power plants. 1MDB invested RM 4.2 billion in a joint venture dubbed 1MDB PetroSaudi Limited with PetroSaudi International Ltd. for an oil exploration project. Within six months, 1MDB converted its 40% interest into an eleven year loan. This clearly affected the cash levels from the newly created 1MDB.

China Helps Pakistan’s Foreign Reserves

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Despite Pakistan witnessing an increase in exports, the rapid increase in crude prices and lackluster financial inflows, have affected the country’s balance of payments position. Trying to avoid a full-scale currency crisis, Pakistan is also dealing with a fiscal budget deficit and a current account deficit. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Russia-Japan Investment Fund to Back Wood Pellet Production in Russia

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The Russian Far East has a lot of timber, and for that wood pellets is a source of biofuel. A while back, the Russian Direct Investment Fund (RDIF) formed the Russia-Japan Investment Fund (RJIF) with the Japan Bank for International Cooperation (JBIC). RDIF and JBICIG Partners as part of RJIF, together with RFP Group and Japan’s Prospect Co., Ltd. have agreed to collaborate and consider potential investments in Russia’s biofuel industry. JBICIG Partners is a subsidiary of the Japan Bank for International Cooperation.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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RDIF Lures Asian Investors Toward Russian Surgical Robot Project

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The Russian Direct Investment Fund (RDIF) is partnering with a number of unnamed Asian co-investors to allocate capital toward a project to create and manufacture Russian surgical robots. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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