Connect with us

MILESTONE: AIIB Holds Official Signing Ceremony

Published

on

Beijing-based Asian Infrastructure Investment Bank (AIIB), an international development bank to rival the World Bank and Asian Development Bank (ADB), held its official signing at Beijing’s Great Hall of the People. The Articles of Agreement (AoA) were officially signed. This milestone event demonstrates China’s global economic influence. 57 counties including Germany, Singapore, United Kingdom, Australia and South Korea are among the founding members. China will hold a 25% to 30% stake in the bank, with India possibly holding 10% to 15% in the financial institution. This gives Beijing significant veto power over key decisions. Russia and Germany would be the next biggest shareholders of the bank. Indonesia will be the eighth biggest shareholder in the AIIB.

The AIIB will have authorized capital of US$ 50 billion, ultimately to be expanded up to US$ 100 billion. The AIIB has pledged to be less bureaucratic than the World Bank and Asian Development Bank. A 2014 World Bank study concluded the average time for a privately-managed bank project from start to completion was two years and five months. To minimize political games, the AIIB will have a nonresident board to center on technical decision making.

The United States and Japan, both opposing the AIIB, have not joined.

Wealth Fund Connection

Lou Jiwei, the former Chairman and CEO of the China Investment Corporation (CIC) and current Minister of Finance for China, commented to the media that the AIIB could start functioning before the end of 2015. The AIIB is led by Jin Liqun who is the interim head. He is tipped to be the bank’s first president.

Silk Road Infrastructure Fund

As China leads in the formation of the AIIB, its US$ 40 billion Silk Road infrastructure fund has opened up a new level of transparency. Jin Qi, the fund’s chief executive, at the Lujiazui Forum in Shanghai, stated the fund will use government transfers, equity sales and stock market listings as exit strategies for divesting in project and investments. This is in order to ensure financial returns from its investments. Beijing maintains the fund is a for-profit fund rather than an aid vehicle. Some of the infrastructure fund’s current investors are the CIC, the Export-Import Bank of China and China Development Bank.

Ascendas-Singbridge Acquires Three Hotels in Osaka

Published

on

Singapore’s Ascendas-Singbridge has acquired three hotels in Osaka for 10.29 billion JPY to tap tourism growth in Japan’s third-largest city.

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

Continue Reading

BlackRock Contemplates Stake in Eurizon

Published

on

Asset management giant BlackRock is contemplating purchasing a 30% ownership stake in Intesa SanPaolo’s asset management unit called Eurizon Capital SGR S.p.A. BlackRock is keen on growing its technology business and increase market adoption of its Aladdin platform.

Intesa has been working with UBS to seek out strategic options for Eurizon. Intesa is keen on maintaining control over Eurizon.

Continue Reading

SWFI First Read, June 22, 2018

Published

on

JPMorgan Fund Buys 40% of Oxford Properties’ French Portfolio

A fund advised by JP Morgan Asset Management committed €400 million in Oxford Properties’ French portfolio. Essentially, Oxford Properties sold a 49.9% non-managing interest in 32 Rue Blanche, 92 Avenue de France and Paris Bastille. Oxford Properties made its maiden investment in Paris in 2014 when it acquired 32 Rue Blanche.

Oxford Properties is the real estate unit of OMERS.

Temasek Explores Further Cash Commitments to FirstCry

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

Continue Reading

Popular

© 2008-2018 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.