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Government may directly fund Rs 1.35-lakh crore bank recapitalisation

Government may directly fund Rs 1.35-lakh crore bank recapitalisation

Finance
NEW DELHI: North Block is likely to directly issue Rs 1.35 lakh crore of bank recapitalisation bonds, taking the entire liability of repayment and interest in the central budget, as it seeks to extricate state-run lenders from a mounting pile of bad debt and make funds available to more productive sectors of the economy. The government is expected to seek approval on the funding mechanism from Parliament in the upcoming winter session, a senior finance ministry official said. Earlier, the government had indicated that some other agency may also issue the bonds and the idea of capital support being routed through a bank holding company had been discussed as well. Parliament’s approvals will be sought through supplementary demands for grants, the official cited above said. The winter se
Norway's state fund 'needs to drop oil and gas investments'

Norway's state fund 'needs to drop oil and gas investments'

Business
Norway's government has been told its state-run fund should drop its investments in oil and gas stocks.Norges Bank manages Norway's $ 1 trillion (£758bn) sovereign wealth fund on behalf of the government.It said the step would make the country "less vulnerable to a permanent drop in oil and gas prices", and its advice was not based on a price forecast or the sector's sustainability.Around 6% of the fund, worth £28bn, is invested in oil and gas stocks."This advice is based exclusively on financial arguments and analyses of the government's total oil and gas exposure," said the bank's deputy governor Egil Matsen.Norges Bank's proposal must now be reviewed by Norway's Finance Ministry, which has said it will announce its own view in the autumn of next year.If it decides to back the central ba
UK railway pension fund investing millions in music

UK railway pension fund investing millions in music

Finance
Of the many alternative investments outside stocks and bonds that pension funds can buy, a few are putting retirement money into music copyrights.RPMI Railpen, the manager of one of the largest and oldest UK pension funds, is leading a $ 345 million investment in a fund rolled out Monday by Kobalt Capital, the subsidiary of music royalties collection and technology company Kobalt."With low expected returns from many traditional asset classes, we are prepared to allocate in alternative investments that can help us to pay members' pensions well into the future," Craig Heron, deputy investment director, RPMI Railpen, told CNBC this week in an email. Through the fund, Railpen buys music copyrights and receives royalties collected by Kobalt."This is an innovative investment opportunity that off...
Hess goes on divestment streak to fund mega oil field

Hess goes on divestment streak to fund mega oil field

Business
Oct. 24 (UPI) -- The more than $ 2 billion in divestments from Norway and Equatorial Guinea will help Hess Corp. develop its opportunities offshore Guyana, the company said."Proceeds from these asset sales, along with cash on the balance sheet, will prefund development of our world class investment opportunity in offshore Guyana, where we have participated in one of the world's largest oil discoveries of the past decade," CEO John Hess said in a statement.Hess and its partner, Exxon Mobil, announced a final investment decision for the Liza oil prospect offshore Guyana in June. The companies put the reserve estimate for the broader area offshore Guyana as high as 2.75 billion barrels of oil equivalent, 10 percent higher than initially thought. The development cost of $ 3.2 billion is consid...
US hedge fund wants break-up of £35bn Shire

US hedge fund wants break-up of £35bn Shire

Business
A US hedge fund is demanding a string of divestments at the FTSE-100 biotech group Shire, underlining growing interest among activist investors in large European companies.Sky News has learnt that Sachem Head Capital Management is urging the board of Shire, which specialises in treatments for rare diseases and neuroscience products, to explore a sale or spin-off of several of its assets.The move, which has been raised during discussions between the hedge fund and Shire directors in recent months, comes after Sachem Head disclosed during the summer that it had acquired a small stake in the pharmaceuticals group.Sachem Head's call for Shire to assess the merits of a separation of some of its divisions has not yet resulted in a formal letter to the company's board, according to a person close...