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October 26, 2020

Russian Railways to receive funding from AIIB

The Asian Infrastructure Investment Bank (AIIB) is set to extend its $300m loan to Russian Railways (RZD), which owns and operates the country’s integrated national passenger and freight railway network.

The Asian Infrastructure Investment Bank (AIIB) is set to extend its $300m loan to Russian Railways (RZD), which owns and operates the country’s integrated national passenger and freight railway network.

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The latest move comes to help alleviate the temporary liquidity constraints that are caused due to the drop in long-haul passenger transportation amid the Covid-19 outbreak.

With this loan from AIIB, RZD will be able to preserve jobs and the working conditions of its employees while ensuring continuous operations.

AIIB investment operations vice-president Konstantin Limitovskiy said: “With this project, AIIB contributes to the support for railway transportation services, which remain a socially significant and the most affordable means of transport for millions of citizens, and an efficient way to transport large quantities of goods and freight.

“AIIB’s commitment to sustainability has to go beyond just the infrastructure itself. It must also account for the people, both those who provide and those who depend on its services.”

Russia’s railway system covers 85,500km of track and its routes transport passengers across large distances, as well as connect to busy seaports that service Asia and Europe.

The rail routes also contribute to the country’s domestic and foreign trade.

Due to the negative impacts of the pandemic, Russian Railways’ long-haul passenger rail operations in Russia have been severely affected.

RZD’s decline in passenger turnover reached 70% in some months.

Funded by the AIIB Crisis Recovery Facility, the project aligns with the bank’s commitment to supporting infrastructure clients in responding to the Covid-19 crisis.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
  • Industry environment
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