Profit participation rights are subordinated securities that grant holders a share of the issuer’s profits. Bloomberg News previously reported that the PIF had exposure to the ailing Austrian real estate group’s junior debt.
Saudi Arabia’s Public Investment Fund and Singapore’s GIC Pte are among the investors listed as holders of riskier equity-like instruments issued by Signa’s luxury real estate unit, now caught up in insolvency proceedings in Austria.
The PIF owns €287 million ($417.8 million) of the profit participation securities, known as Genussrechte or Genussscheine, while the South-East Asian sovereign wealth fund owns €85 million, according to the insolvency filing from Signa Prime Selection dated Dec. 28 seen by Bloomberg News.
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