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PR Newswire
09-06-2014, 09:18 AM
GIC is betting on China private bonds. China is relaxing its regulation on private company bonds recently, and GIC seems very optimistic on the prospect of China bond market.
The key point is those private bonds are unrated.
GIC bets big on Chinese debt
Singapore sovereign wealth fund GIC is making waves in the Asian debt markets with a series of unusually big investments in bonds from China.
According to market sources, in recent weeks, GIC has bought US$700 million ($877 mlllion) of unrated 4.7% bonds due 2019 from computer maker Lenovo, a US$400 million 2019 private placement from property developer Vanke, and a HK$2 billion ($323 million) 3.2% 2020 note from internet group Tencent Holdings.
Adding to the sudden increase in activity, the fund is said to have been behind the anchor order for the US$350 million reopening of China Resources Land, as well as a big buyer in several other transactions.
The investments in unrated bonds and private placements mark a newly aggressive approach from GIC. It also contrasts with the liquidity-driven investment philosophy of other sovereign wealth funds, which typically prefer to invest taxpayers' money in high-rated and well-traded securities. "A US$700 million order for an unrated bond is a big thing for a sovereign wealth fund," said one banker.
...
http://www.theedgesingapore.com/the-dail...?showall=1
The key point is those private bonds are unrated.
GIC bets big on Chinese debt
Singapore sovereign wealth fund GIC is making waves in the Asian debt markets with a series of unusually big investments in bonds from China.
According to market sources, in recent weeks, GIC has bought US$700 million ($877 mlllion) of unrated 4.7% bonds due 2019 from computer maker Lenovo, a US$400 million 2019 private placement from property developer Vanke, and a HK$2 billion ($323 million) 3.2% 2020 note from internet group Tencent Holdings.
Adding to the sudden increase in activity, the fund is said to have been behind the anchor order for the US$350 million reopening of China Resources Land, as well as a big buyer in several other transactions.
The investments in unrated bonds and private placements mark a newly aggressive approach from GIC. It also contrasts with the liquidity-driven investment philosophy of other sovereign wealth funds, which typically prefer to invest taxpayers' money in high-rated and well-traded securities. "A US$700 million order for an unrated bond is a big thing for a sovereign wealth fund," said one banker.
...
http://www.theedgesingapore.com/the-dail...?showall=1
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