28 September, 2023, 8:58 pm Central - 22°C Rain

FNPF does not go to the market and talk about our intentions – Vodonaivalu

FNPF does not go to the market and talk about our intentions – Vodonaivalu

By Shanil Singh , Vijay Narayan
Friday 08/07/2022
FNPF CEO Viliame Vodonaivalu

The Fiji National Provident Fund does not go to the market to talk about their intentions and seek advice according to CEO Viliame Vodonaivalu after questions were raised on why FNPF members were not informed about the decision to buy 30.02 percent shares in Fiji Airways.

The Fund confirmed yesterday that it has invested $93.1 million to purchase those shares.

Vodonaivalu says normally they have an undisclosed agreement in place.

We have asked Vodonaivalu if there was a need for consultations with stakeholders and its members because people have raised concerns as to why they were not aware of the acquisition.

In his response, Vodonaivalu says the FNPF Board has been entrusted under the Act by the members to undertake certain investments and not at any point in time they disclose what they are doing publicly.

Vodonaivalu has also confirmed that it is not a debt to equity swap that Fiji Airways took from the Fund and that the loan continues to run its full term with all conditions being followed.

He also says to date, FNPF members have gained $92 million in interest from the lending agreement with Fiji Airways.

Vodonaivalu says now that FNPF owns shares, the members will also gain from returns that the airline would make in this post-pandemic growth cycle.

The CEO says the Fund’s investment follows an intensive due diligence process that started in September last year, conducted by reputable local and international firms with extensive knowledge of the aviation industry and expertise in the areas of valuation, deal advisory, financial and tax due diligence, legal due diligence, technical due diligence and peer review.

He says the team of experts, led by ANZ Corporate Advisory out of Australia, included IBA - one of the world’s leading aviation advisors, Australian law firm Norton White, a leader in transport law, McGrathNicol, Hall & Wilcox, Howard’s Lawyers and Molony Advisory, who are all leaders in their fields.

Vodonaivalu says Fiji Airways has always been on their radar - they saw this as an opportunity and believe that there will be full recovery of FNPF’s investment, given that this strategic national asset has high return potential both in interest income and capital appreciation, apart from the obvious tourism synergies.

He adds that Fiji Airways is an enabler to other investment opportunities such as medical tourism, aged-care and commercial agriculture ventures for export, whilst also having a synergistic relationship with FNPF’s substantial hotel portfolio.

Vodonaivalu says the Fund’s strong investment performance noting that FNPF was the only local financial institution that was able to pay an interest of 5 percent and more during the pandemic.

He says FNPF has a history of providing good returns - this means they make solid investments, and this is why they are able to consistently pay out good interest rates to members.

fijivillage Straight Talk with Vijay Narayan
Latest Videos

Stay tuned for the latest news on our radio stations

CFL radio frequencies
Tamavua Action Group to petition against development close to Princes Road cliff edge
Members of the Tamavua Action Group who are residents in the Tamavua area are now gathering signatures to protest against the development close to the...
5 hours ago
Fuel and gas prices to increase from Sunday
Get ready to fork out more money as fuel and gas prices will increase from Sunday. The Fijian Competition and Consumer Commission says unleaded ...
2 hours ago

One of the biggest challenges faced in relation to reporting and dealing with gender based violence is the Fiji Police - Ali
Fiji Women’s Crisis Centre Coordinator, Shamima Ali says one of the biggest challenges faced in relation to the reporting and dealing with gender ...
3 hours ago

Fiji to have $3b tourism industry by December this year
Fiji will have a $3 billion dollar tourism economy by this December, ahead of the anticipated time of the end of next year. This has been ...
3 hours ago

Qiliho maintains he did not direct officers to close investigations
Former Prime Minister Voreqe Bainimarama and suspended Police Commissioner Sitiveni Qiliho’s lawyer Devanesh Sharma and the Acting Director of ...
3 hours ago

France secures second win of Mini 7s leg 2 beating Aussie Green 28-14
The French Women's 7s side secured their second win of the Fiji Airways Mini International 7s tournament leg 2 after a 28-14 win over the Aussie ...
7 hours ago
EBayShop Online Recruitment scam
The Consumer Council of Fiji has issued a public alert about a group of individuals running a deceptive pyramid scheme known as “EbayShop Online Recruitment.”
3 days ago

7 Grace Road Group executives declared prohibited immigrants in Fiji after decisions by the South Korean Government and a request by Interpol
7 Grace Road executives in Fiji have been declared prohibited immigrants by the Fijian Government, it has been made clear through government ...
3 days ago

Bainimarama and Qiliho’s trial
The trial of former Prime Minister Voreqe Bainimarama and suspended Commissioner of Police Sitiveni Qiliho begins
41 days ago