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US, Chinese funds to take part in Rusal IPO: report

Taipei Times reports, “A US-British asset management giant and a Chinese sovereign wealth fund have agreed to take part in the Hong Kong initial public offering (IPO) of the world’s largest aluminum producer, UC Rusal, a report said yesterday. Black Rock and China Investment Corp (CIC) have given their initial agreement to take part in the IPO along with Russian state banks whose interest was already confirmed, daily Vedomosti said. Quoting bankers close to the operation, the newspaper said that Rusal directors had late on Wednesday agreed on a valuation for the Russian metals giant of US$16 billion to US$22 billion for the IPO. Vedomosti said this would make Rusal — whose majority shareholder is the oligarch Oleg Deripaska — the largest aluminum firm worldwide by capitalization, ahead of US firm Alcoa, which is valued at US$15.9 billion.

Sources said earlier this month that Rusal won conditional approval for the IPO from the Hong Kong bourse, ending weeks of uncertainty over whether its billions of dollars of debt would thwart the plan. Rusal plans to float 10 percent of its shares valued at around US$2 billion in by far the biggest IPO by a Russian company since the economic crisis.

Vedomosti said Rusal was now planning to set the IPO price and complete the transaction by Jan. 20. Pre-marketing will start on Jan. 5 and a roadshow on Jan. 11. Around one-third of the shares will go to Europe-based funds and another third to Chinese funds. The Hong Kong bourse is not expected to allow private investors to take part. The involvement of investors like Black Rock — which has US$1.44 trillion of assets under management — should attract smaller funds and mean Rusal has no problem attracting interest in the IPO, Vedomosti said.

Rusal and Black Rock declined to comment, Vedomosti said.”

read more: Taipei Times

UNICEF and NBIM to Host Meetings on Children’s Human Rights

The United Nations Children’s Fund (UNICEF), a United Nations programme headquartered in New York City, has partnered with Norges Bank Investment Management (NBIM) to facilitate a series of meetings between companies to discuss issues surrounding children’s human rights.

According to the news release, “the network will facilitate dialogue between leading brands and retailers in the garment and footwear industry to strengthen children’s rights.”

NBIM is invested in many listed companies and have invited them to join a network to tackle these issues. Over the next two years, the organizations plan to hold three workshops as well as quarterly meetings surrounding these issues.

“Over time, we hope and expect that the network will contribute to improved market practices among companies and greater respect for children’s rights,” says Carine Smith Ihenacho, Global Head of Ownership Strategies, in a NBIM press release.

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SouthGobi’s CEO Arrested, CIC Struggles with Investment

The China Investment Corporation (CIC) has long struggled with its investments in coal assets, specifically in globally-listed coal miner SouthGobi Resources Ltd, which operates its flagship coal mine in Mongolia. In November 2009, CIC and SouthGobi Resources inked a convertible debenture deal. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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Qatar Central Bank Deals with MSCI

MSCI, a stock index company whose benchmarks influence investor behavior, has tremendous indirect power impacting the stock markets of smaller economies. In 1988, MSCI released its emerging markets index, a now-widely-used benchmark for many institutional investors wanting access to growth markets. China and South Korea make up the majority of the benchmark, but smaller economies such as Poland, Chile and even Qatar make up other pieces of it.

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

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