Business & Economy Current Affairs 2017

AIIB Approves $150 million for India Infrastructure Fund

China-led Asian Infrastructure Investment Bank (AIIB) has approved $150 million equity investment loan to the India Infrastructure Fund. This loan will be the bank’s first equity investment to fund private projects.

Salient Highlights

The $150 million investment would go the India Infrastructure Fund. The Infrastructure Fund aims to invest in mid-cap infrastructure companies in India.

AIIB in total has approved two loans and one equity investment totalling $324 million to support infrastructure projects in India, Georgia and Tajikistan. In the case of Georgia and Tajikistan, the loans were approved to support transport and power projects.

The initiative is expected to benefit local infrastructure development as it will enhance private capital inflows from global long-term investors, such as public pension funds, endowments and insurance companies.

AIIB

AIIB is a multilateral development bank backed by China and is seen as a rival to the World Bank and Asian Development Bank (ADB). The bank started to function in January 2016. The bank was established to fund various infrastructure projects including energy, transportation, urban construction and logistics as well as education and healthcare in Asia-Pacific region.

The AIIB was officially established with 57 founding members. But as of May 2017, the bank has 52 members. It has an authorised capital of USD 100 billion. The bank is headquartered in Beijing.

Voting Share: China is the largest shareholder with 26.06% voting shares. India is the second largest shareholder with 7.5% voting shares followed by Russia 5.93% and Germany with 4.5%.

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Verizon Completes Yahoo Acquisition

Telecom giant Verizon has acquired Yahoo’s core business for $4.48bn (£3.51m), thus ending Yahoo’s two-decade long run as an independent company. Verizon is the No.1 wireless operator in the US.

Salient Highlights

Verizon will combine Yahoo with AOL which was bought by it two years ago to establish a venture called Oath. The Oath is a division in Verizon’s Media and Telematics organisation. Oath owns more than 50 brands such as HuffPost, TechCrunch and Tumblr.

With the acquisition, Yahoo’s chief executive Marissa Mayer has resigned.

Verizon has not indicated how it proposes to use the Yahoo brand which is used by millions of people worldwide. But it has stated that it will keep the names Yahoo Sports, Yahoo Finance, Yahoo Mail and more.

Yahoo’s acquisition brings to an end a long decline of its market value which peaked at $125 billion in 2000.

The remainder of Yahoo which is not acquired by Verizon will change its name to Altaba Inc. It will become a holding company with 15.5% stakes in Chinese Internet giant Alibaba and a 35.5% holding in Yahoo Japan Corp. It will begin trading under the ticker symbol “AABA.”

Thomas McInerney, a Yahoo board member will be made as Altaba’s chief executive officer.

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