BAKU, Azerbaijan, Jun. 2
By Nargiz Sadikhova - Trend:
European Bank for Reconstruction and Development (EBRD) may provide a 7-year senior secured loan of up to $24 million equivalent to Eastcomtrans LLP, the largest private rolling stock operator in Kazakhstan, Trend reports with reference to EBRD.
The loan is expected to contribute to the refinancing program conducted by Eastcomtrans LLP and is aimed to reduce the exposure to foreign exchange related risks and to optimize the maturity profile of the Eastcomtrans LLP's existing debt.
“The project will introduce a new, replicable and nationally accredited training program to equip up to 100 young people with better professional skills in partnership with a local vocational school or university. Also, the company will develop and adopt contingency plans aiming at the enhancement of resilience to external shocks and better crisis management systems,” EBRD said.
The EBRD added that COVID-19 pandemic and market disruption made commercial lenders more sensitive to actions of other investors.
“The Bank's participation in refinancing efforts of the company provides comfort to other lenders and reduces uncertainty, filling in the financing gap on the market,” the report said.
The lending approval date is planned for Jul. 8, 2020, based on the EBRD project summary.
Eastcomtrans LLP is a private railway operator domiciled in the Republic of Kazakhstan. The Company owns and leases over 12,000 wagons with an average age of below 10 years.
To date, EBRD has invested 8.63 billion euros through 273 projects in the economy of Kazakhstan. Support of small businesses is particularly important as the country moves to reform its economy and strengthen its private sector.
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