Bloomberg News

Peru to Seek Investments From Singapore State Investment Firms

July 11, 2012

Peru will seek investments from Singapore’s sovereign wealth firms after they indicated interest in the Latin American country’s projects, Finance Minister Miguel Castilla said.

“We’re going to meet the Singapore wealth funds in a couple of days,” Miguel Castilla said in an interview yesterday from Shanghai. “They’ve shown interest in investing in our assets and they’re looking into projects suitable for investment.”

The meetings come as the Government of Singapore Investment Corp., the city-state’s sovereign wealth fund, and Temasek Holdings Pte, its state-owned investment company, seek to expand in emerging markets including Latin America to boost returns.

Investments in Peru, South America’s sixth-biggest economy, will help tap a market that’s the world’s top silver producer, the third-largest copper production center and sixth for gold. Peru may reach or exceed its economic growth targets for this year, bolstered by domestic demand and a rebound in China, the president of the Peruvian central bank said yesterday.

GIC, as the Singapore fund is known, last year appointed senior executives in new roles to reflect its push into emerging markets, including naming Seek Ngee Huat, president of its real estate unit, to head its Latin American business group.

The Americas made up 42 percent of GIC’s holdings, the biggest by region, according to its website. Jennifer Lewis, spokeswoman for the manager of more than $100 billion of the nation’s reserves, declined to comment on this report.

‘Strategic Engagement’

Temasek, which had S$198 billion ($156 billion) of assets as of March, hired Gregory Curl, once a candidate for chief executive officer of Bank of America Corp. (BAC:US), almost two years ago. Curl, who has more than three decades of experience in banking as well as mergers and acquisitions, has the role of president of the Americas at Temasek, which said at the time that he will support its “strategic engagement” in that region.

Temasek also expanded its investments in energy and resources companies, which now account for 6 percent of its holdings from 3 percent a year earlier. Latin American companies make up 1 percent of its portfolio, according to its annual report released last week.

“As a matter of policy, we don’t comment on meetings with officials, or whether or not such meetings are involving us,” Stephen Forshaw, a spokesman for Temasek, said in an e-mail.

Stock Rally

Peru’s benchmark stock index will rally 10 percent or more this year as a recovery spurs at least one more initial share sale, Roberto Hoyle, chairman of Bolsa de Valores de Lima SA, which runs the main securities exchange, said this week.

The Lima General Index has risen 3.2 percent in 2012 after paring an increase of 24 percent reached April 2. Stocks have fallen since then on concern Europe’s debt crisis and China’s economic slowdown will curb Peru’s exports of commodities such as copper and gold.

Peru may reach or exceed its economic growth targets for this year, bolstered by domestic demand and a rebound in China in the third quarter, Julio Velarde, president of the central bank, said yesterday from Shanghai. Growth will be 5.8 percent this year, the central bank said in a June 15 report.

Castilla and Velarde are part of a delegation of Peruvian government officials traveling across Asia, including visits to Hong Kong and Singapore.

To contact the reporter on this story: Allen Wan in Shanghai at awan3@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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