SWF to team up with OTPP, Hermes
million bpd higher than demand, filling oil storage tanks from Houston to Huangdao.
And as prices have fallen, many oil producers have hedged their future oil production using derivatives, selling futures contracts for oil that will be pumped in 2016, 2017 and beyond.
This has helped pull down forward prices as nearby spot prices have col− lapsed, dragging the whole futures curve lower.
In 2008/9, forward futures held up fair− ly well. Contracts for US crude oil five years ahead traded as much as $30 above prompt prices, keeping the futures curve in a steep downward slope known as a ˆcontango˜.
Now that slope is much less steep, with the five−year futures spread under $20.
ˆThere is an imbalance today com− pared to 2008. We have 3 million bpd more producer hedging from shale guys,˜ said Sen at Energy Aspects. ˆThat will necessarily pressure the back.˜
Seth Kleinman, head of research at Citigroup, agrees:
ˆThe big move in the back of the (futures) curve reflects that, unlike in 2008/9, this is not a short−term demand− led dip, but is really a structural supply− led drop,˜ Kleinman said.
energy LONDON, Aug 19: One of the world´s biggest sovereign wealth funds is part of a consortium that is plotting a bid for London City Airport, which has been val− ued at £2bn, says an article in the Telegraph.
Wren House Infrastructure Management, which is an investment vehicle owned by the Kuwait Investment Authority; Canadian giant Ontario Teachers´ Pension Plan; and investment firm Hermes have teamed−up to make an offer for the airport, according to sources in the infrastructure sector.
The KIA is the world´s fifth largest sovereign wealth fund with some $592bn in assets.
The trio will come up against a group led by the infrastructure arm of Australian financial group Macquarie, which is also understood to be preparing a rival approach for London City.
Suitors are scrambling to position themselves for a bidding war after private DUBAI, Aug 19, (RTRS): Etisalat will not extend voting rights to foreign investors when the United Arab Emirates´ former telecom monopoly opens up its shares to non−UAE investors, it said on Wednesday.
Government−run Etisalat is worth near− ly twice as much as the second biggest listed UAE company, but its publicly− traded shares can only be owned by UAE nationals and all institutions are excluded.
In June, Etisalat said it would loosen these rules to permit foreign and institu− tional investors to buy shares, and on Wednesday it provided further details after reforms were approved by the cabi− net.
Non−UAE investors will be allowed to own up to 20 percent of Etisalat´s shares, equity house Global Infrastructure Partners revealed earlier this month that it had put the airport up for sale.
GIP, which owns 75pc of London City as well as Gatwick and Edinburgh air− ports, bought the airport nine years ago for around £750m. It is thought that a sale could fetch up to £2bn. Earlier this week it emerged that GIP had hired Credit Suisse to handle the disposal of London City. Oaktree Capital owns the remaining 25pc of the airport and has agreed to the sale.
London−based Wren House was set up in 2013 to facilitate direct infrastructure investment by Kuwait´s sovereign wealth fund. Kuwait was part of a consortium that unsuccessfully attempted a £5bn takeover of water utility Severn Trent two years ago.
OTPP, which manages about C$154.5bn in assets, is one of Canada´s largest investment houses and is a major player in British infrastructure. It took the company reiterated, but will not be granted voting rights, a statement to Abu Dhabi´s bourse said.
Given other attractions of the stock, that restriction should not deter foreign buyers, one analyst said.
ˆEven if they were allowed to vote the government owns a majority stake and so will be in charge,˜ said Shrouk Diab, an Assistant Vice President at NBK Capital in Dubai.
ˆEtisalat´s stable dividend policy is attractive to investors and the company is also a play on the UAE economy.˜
Etisalat will likely be included in MSCI´s emerging market index after for− eign share ownership is permitted, and its weighting on the MSCI will also proba− sole ownership of Bristol Airport last September, holds a stake in Birmingham Airport, and, along with fellow Canadian pension fund Borealis Infrastructure, owns High Speed 1, the company behind the rail link between London St Pancras and the Channel Tunnel.
Hermes is also a key investor in the infrastructure sector and, together with the Canada Pension Plan Investment Board, bought a 30pc stake in Associated British Ports for about £1.6bn earlier this year.
Macquarie Infrastructure and Real Assets, which is planning its own consor− tium bid, was bought out of Bristol Airport by OTPP.
London City is close to Canary Wharf and is a popular airport for workers in the financial services sector. It expects to carry about 4.1m passengers this year, up from 3.7m in 2013 and 2.8m in 2010. The airport is targeting 6m passengers a year by 2023. bly be too big for funds tracking the index to ignore.
The firm has operations in 19 countries in the Middle East, Africa and Asia. The UAE accounted for 57 percent of second− quarter revenue.
Three government−related funds own 80 percent of rival operator du´s shares. The remainder is held by individual investors and UAE−controlled institutions.
Consequently, Etisalat will be the sole means for non−UAE companies to get exposure to the UAE´s telecom sector.
The federal government, which owns 60 percent of Etisalat through fund Emirates Investment Authority (EIA), will also be issued with a `special share´, the statement said.