April 27 (Reuters) – The Norwegian central financial institution on Thursday excluded two oil and gasoline corporations from its $1.4-trillion wealth fund, the world’s largest, citing moral considerations over their ties to the Myanmar navy.
South Korea’s state-run Korea Gasoline Corp (KOGAS) (036460.KS) and Indian gasoline agency GAIL (India) Ltd (GAIL.NS) had been excluded from the fund, Norges Financial institution stated in an announcement.
The 2 had been excluded resulting from “unacceptable danger that (the) corporations contribute to severe violations of people’ rights in conditions of battle or battle,” the fund stated.
“The background is the businesses’ enterprise collaboration with a corporation affiliated with the navy in Myanmar,” Norges Financial institution Funding Administration (NBIM) stated.
GAIL didn’t reply to a Reuters request for remark after market hours. Korea Gasoline Corp couldn’t be instantly reached.
Norway’s wealth fund operates beneath moral tips set by parliament and excludes investments in corporations that it says doesn’t respect the rules.
On the finish of final yr, the fund held $5.5 million price of shares in KOGAS, representing 0.21% of the excellent shares, based on the fund’s filings.
Norges Financial institution held $70.2 million in GAIL shares as of the identical date, representing 0.92% of complete shares within the firm.
The Norwegian sovereign fund, formally known as the Authorities Pension Fund International and arrange in 1996 to avoid wasting petroleum revenues for future generations, owns about 1.5% of all globally listed shares.
Norges Financial institution holds stakes in additional than 9,200 corporations globally by way of the wealth fund.
Reporting by Mrinmay Dey in Bengaluru
Modifying by Chris Reese
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