August 22, 2008

Russian railway RZD could raise USD 12 billion from IPO

RIA Novosti citing Mr Andrei Kostin CEO of VTB Bank as saying that Russia's railway monopoly RZD could raise around RUB 300 billion from a IPO of 20% of its stock.

Mr Vladimir Yakunin president of RZD earlier said the company could float shares after 2010 to attract investment for building new railroads.

Today RZD is wholly owned by the state and cannot hold an IPO. At the same time, RZD could raise funds through the share offerings of its subsidiaries.