Baku, Azerbaijan, Aug. 1
By Elena Kosolapova - Trend:
Joint Stock Company National Company "Kazakhstan Temir Zholy" (KTZ) has signed a loan agreement with the European Bank for Reconstruction and Development (EBRD) on providing a syndicated financing package of $300 million in support of a comprehensive modernization and restructuring program of the Kazakh railway operator, the message of the company said July 31.
KTZ is a national railway company which manages railway infrastructure and operates freight and a large share of passenger train services.
The EBRD will extend $150 million of this amount for its own account and syndicate the remaining $150 million to commercial banks. The syndicate comprises the following banks: Citibank, NA, London branch; Mizuho Bank, Ltd; Société Générale; Sumitomo Mitsui Banking Corporation; and the Bank of Tokyo-Mitsubishi UFJ, Ltd.
The signing ceremony took place in the EBRD headquarters in London, in the presence of representatives of the EBRD, KTZ and the Embassy of the Republic of Kazakhstan in the UK.
The proceeds of the loan will be used to refinance KTZ's eurobonds.
The total amount of funding proposed by these banks was significantly higher than the required amount for the transaction, which shows high confidence of creditors in the company.
To date, the EBRD has invested over $7 billion in various sectors of the country's economy. The Bank is the largest investor in the non-oil and gas sectors of the Kazakhstani economy.
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