July 11, 2018 Read More →

Norway sovereign funds dumps coal-heavy PacifiCorp bonds

S&P Global Market Intelligence ($):

Norway’s central bank, which manages the country’s $1 trillion sovereign wealth fund, has sold its holdings of bonds issued by PacifiCorp, a U.S. utility owned by Warren Buffett, in its latest round of ethical and environmental divestitures.

Norges Bank said it has excluded PacifiCorp from the portfolio of the Government Pension Fund Global, widely ranked the world’s largest sovereign wealth fund, because the company derives more than 30% of its business from coal.

The central bank also placed PacifiCorp’s parent company, Berkshire Hathaway Energy and fellow subsidiary MidAmerican Energy Co. under observation, meaning they could also be excluded from the fund’s portfolio in the future.

As of the end of 2017, the Norwegian fund owned $164 million in bonds in Berkshire Hathaway Energy, $129 million in PacifiCorp, and $33 million in MidAmerican, according to the Financial Times.

Norges Bank also excluded Tri-State Generation and Transmission Association Inc. from the fund’s portfolio over coal use.

More ($): Norway’s sovereign fund ditches Warren Buffett-owned utility over coal use

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