ASTANA, Kazakhstan, February 14. The European Bank for Reconstruction and Development (EBRD) has invested $41.99 million into shares of Kazakhstan’s flagship carrier, Air Astana, supporting the country’s first partial privatization through an initial public offering (IPO), a source at the EBRD told Trend.
Thus, the EBRD’s investment represents a five percent shareholding in Air Astana.
The shares will be listed on both the London Stock Exchange and the Kazakhstan Stock Exchange.
As the EBRD noted, the IPO funds, including the Bank’s investment, will be deployed to support Air Astana’s fleet expansion and renewal program, the construction of an aircraft maintenance facility and the acquisition of a flight simulator.
To note, Air Astana will be aiming to expand its current fleet to 80 aircraft by 2029 by acquiring new fuel-efficient planes.
In the EBRD's view, the IPO is a significant privatization benchmark for Kazakhstan’s economy, which is predominantly controlled by the state. The reduction of the state’s ownership to less than 50 percent, which will be achieved through the IPO, sets an important precedent for the country and the region. The participation of the EBRD (a AAA-rated investor) in the IPO will give additional confidence to institutional and private investors looking at opportunities in Kazakhstan and Central Asia.
"The EBRD, which became fully aligned with the Paris Agreement at the start of 2023, will be working with Air Astana, a regional corporate leader in sustainability, towards achieving its target of becoming carbon-neutral by 2050. The Bank will also use this opportunity to play a greater role in the decarbonization of aviation and to assist in setting up the sustainable aviation fuels industry in Central Asia," the EBRD noted.
Meanwhile, with 10 billion euros invested in the country to date through 317 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.