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China Investment Corporation finances US$500 million convertible debenture to SouthGobi Energy Resources

According to the Press Release, “Alexander Molyneux, President and CEO of SouthGobi Energy Resources Ltd., announced today that SouthGobi will accelerate the development of its Mongolian coal projects through its wholly-owned Mongolian operating subsidiary, Southgobi sands LLC. SouthGobi’s Mongolian investment program during the next three to five years is planned to include:

  • Expansion of the Ovoot Tolgoi Mine.
  • Development of the Soumber deposit.
  • Development of regional transportation infrastructure.
  • Construction of a coal washing facility.
  • Creation of approximately 300 new jobs.
  • Mr. Molyneux said financing for the investment program has been secured from a wholly-owned subsidiary of China Investment Corporation (”CIC”), which will provide US$500 million in the form of a secured, convertible debenture bearing interest at 8.0%.

    ‘Our continued exploration successes have significantly expanded our coal resources in Mongolia’s South Gobi – and now we are in a position to develop our company into a prominent regional producer and exporter,’ Mr. Molyneux added.

    ‘We recently announced our Measured and Indicated coal resource base, compliant with the Canadian NI 43-101 reporting standard, has increased from 221.2 million tonnes to 307.6 million tonnes, a jump of 39%. We also announced the initial resource at Soumber, an entirely new coal deposit in the South Gobi, and there is significant potential for other discoveries.'”

    read more: Press Release

    Asian Sovereign Funds Not Slowing Down on Tech Investing

    According to data from SWFI’s Sovereign Wealth Fund Transaction Database, Asian sovereign funds invested US$ 6.05 billion directly into companies and assets in the information technology sector from Jan 2017 to November 22, 2017. In a comparable time frame from Jan 2016 to November 22, 2016, this same group of Asian sovereign funds directly invested US$ 5.02 billion in the sector. These are direct investments, not fund commitments or manager allocations.

    Asian sovereign funds such as GIC Private Limited, Temasek Holdings and the Korea Investment Corporation (KIC) have demonstrated bullish signals to the technology community over other sectors. GIC and Temasek have also been major investors in the private side of deals, funding a wide range of tech startups, while providing financial firepower in buyout transactions.

    Some notable direct tech investments in 2017 by sovereign funds include Meituan-Dianping, SoundCloud, Nets A/S, Visma AS, Turn, Inc. and Vantiv.

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    Future Fund Makes a Guardian Out of Former J.P. Morgan ANZ Chair

    The Australian government has appointed Robert Priestley – current non-executive chair of J.P Morgan for Australia and New Zealand (ANZ) and a non-executive director of ASX – to serve on the Future Fund Board of Guardians for a five-year term from November 7, 2017. Priestley replaces former Morgan Stanley Australia chief executive Steven J. Harker.

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    Associated British Ports Reboots Property Development Arm to Capitalize on Land Bank

    Associated British Ports (ABP) – operator of 21 major ports throughout the United Kingdom – has announced a reboot of its ABP Property division, complete with a new team of specialists in commercial development and logistics led by Huw Turner, in order to identify and develop strategically significant locations in its 2,372 acre land bank.

    ABP is owned in large part by a consortium of pensions and sovereign funds, including the Canada Pension Plan Investment Board (CPPIB) at 33.88% ownership, OMERS at 30%, Singapore’s GIC Ventures Pte Ltd at 20.00% ownership, and the Kuwait Investment Authority at 10.00% ownership. Large institutional investors such as sovereign funds, pensions, and endowments have slowly increased allocation towards infrastructure over the past six years as an alternative to equities and bonds, according to asset allocation data from SWFI.


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