Connect with us

China Investment Corp Converts Bonds in Uralkali

The Chinese Investment Corporation (CIC), through its wholly-owned subsidiary Chengdong Investment Corporation, converted its bonds in Uralkali, one of the world’s largest potash producer, to a 12.5% equity stake.

The news comes in the form of a press release issued by Uralkali on September 24th, 2013. According to the statement, the massive institutional investor converted exchangeable bonds it had purchased in November of 2012 into ordinary shares in the potash producer. The Sovereign Wealth Fund Institute posted an article back in November 2012 detailing the CIC’s initial investment.

The bonds were issued by Wadge Holdings Limited and Fenguard Limited, special purpose vehicles owned by key shareholders in Uralkali.

Roughly 90% of potash is used as a soil fertilizer. It is estimated that China imports roughly 20% of its potash for use on its crops. In recent years, potash exports have slowed due to the economic recession, and stockpiles have remained heightened. Forecasts estimate potash prices at US$ 300 per tonne before the end of the year, a steep drop off from the US$ 900 per tonne, just before the financial crises.

Mubadala Inches Closer to Invepar Ownership

Since the beginning of the year, Abu Dhabi-based Mubadala Investment Company has been looking at owning the distressed Brazilian infrastructure company Invepar SA for quite some time. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

KDC’s Latest Acquisition a Breath of Fresh Air

Knowlton Development Corporation (KDC) has made its latest acquisition with the purchase of Aromair Fine Fragrance Company Inc., a U.S. subsidiary of Aromair Group that specializes in air care products, from London-based Strategic Value Partners. The terms of the transaction, which was completed on November 8, were not disclosed. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Norges Bank Recommends Dropping Oil Stocks for Sovereign Fund

Norges Bank penned a letter to its Ministry of Finance recommending the removal of oil and gas stocks from the GPFG’s benchmark index. At the moment, oil and gas stocks make up roughly 6% of the wealth fund’s benchmark index, or just around 300 billion NOK. Norway’s wealth fund is a major holder of oil companies such as ExxonMobil, Chevron, BP, Total and Royal Dutch Shell. Oil and gas stocks were a major driver of positive equity returns in previous quarters.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2017 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.