EBRD issues 30 billion tenge to Kazakhstan’s national rail company
By Aynur Jafarova
The European Bank for Reconstruction and Development (EBRD) has allocated a loan worth 30 billion tenge ($121 million) to Kazakhstan's national rail company Kazakhstan Temir Zholy (KTZ).
The loan is aimed at financing the purchase of equipment for logistics and infrastructure maintenance, EBRD said on September 29.
"The project will serve the main priorities for KTZ, to increase Kazakhstan's transit potential and also to strengthen the security of passenger rail transportation," the bank noted.
This loan is also significant as EBRD's largest local currency loan in Kazakhstan to date. It will hedge the company against foreign exchange risk.
"This loan will significantly reduce KTZ's foreign currency risk. It is particularly significant for the EBRD as it is the first large local currency loan by the bank under the new local currency facilities granted by the National Bank of Kazakhstan," EBRD Director for Kazakhstan Janet Heckman said.
KTZ is a joint stock company which manages the country's railway system and also operates passenger and freight rail services, handling about half of all rail freight in the country.
The loan will be made to KTZ and its subsidiaries, KTZ Express and Lokomotiv.
Since the beginning of its operations in Kazakhstan, the EBRD has invested close to $6.5 billion in the country's economy with more than half of the bank's projects supporting the private sector.