northern rail corridor, page-6

@summer1

from long exposure i;d say its premature to try making assumptions about how the railway gets financed/funded.

generally the terms are driven by the economic assumptions of the day - get a strong coal price envirnment and good traffic charges and youll get all or nearly all the risk sold to investment and commercial bank consortium at attractive terms and a free ride for AKM with a big multiplier effect into the SP because of the high dependability of infrastructure earnings

bad market and bad economics and it all falls on the company - company struggles to fund and that becomes a drag on stock price because of perceived dilution threat

its just too early to say which way this will go atm - but i do think structurally the chinese will likely supply key funds because they want the rail corridor

and in a world where big pension funds find generating yield at low risk increasingly hard to come by - rail projects like this are quite attractive generally.