The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Singapore’s sluggish initial public offering (IPO) market is looking for a much-needed revival, with real estate investment trusts (REITs) expected to lead the charge in 2025. One potential standout is Nippon Telegraph & Telephone Corp (NTT), which is considering a data-center REIT listing that could be worth as much as US$1 billion. This would be a major boost to the Singapore Exchange (SGX), which is on track for its worst IPO year in over 25 years, with just one IPO recorded so far in 2024.
The REIT sector has shown signs of recovery, with Singapore-based real estate trusts rising 14% during the third quarter of 2024. A global decline in interest rates has made the sector more attractive to investors by lowering borrowing costs and boosting dividend yields. This trend is expected to fuel more fundraising and investor interest in REITs, potentially creating a virtuous cycle for new listings.
“We are constructive on the equity capital markets in Singapore for the fourth quarter and onwards,” said Mrinal Parekh, head of equity capital markets for Southeast Asia and India at BNP Paribas. He noted that investors have already started inquiring about REIT opportunities.
The potential US$1 billion NTT listing would be Singapore’s largest since Netlink NBN Trust’s IPO raised US$1.7 billion in 2017. Data centers are particularly attractive to investors, thanks to the growing artificial intelligence sector, with tenants likely to maintain their leases due to the high costs of relocating.
In September, CapitaLand Integrated Commercial Trust, a major player in the REIT space, raised S$1.1 billion to acquire a 50% interest in a high-end Singapore mall, further illustrating the sector’s growing influence in revitalizing Singapore’s equity capital markets.
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