The national railway operator KTZ plans to issue bonds worth 75 billion tenge ($150 million). Each bond will have a nominal value of 1,000 tenge and will be placed domestically. This was reported by the railway transport news portal Railway Supply.

Kazakhstan increased its railroad engineering production

Additionally, the KTZ Board of Directors approved the purchase of shares by its sole shareholder, Samruk-Kazyna. The fund will acquire 1,000 shares of KTZ for 13.3 billion tenge ($26 million).

KTZ Invests in Fleet Renewal to Enhance Operational Efficiency

In 2023, KTZ signed a $1.3 billion contract with CRRC for 200 new locomotives. These deliveries, which include 100 mainline and 100 shunting locomotives, are scheduled to conclude by 2029.

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The company also plans to acquire 1,200 passenger carriages, increasing the fleet to over 3,000 units. This investment will reduce fleet wear from 44% to 38% and improve passenger services.

Starting in 2025, KTZ will begin receiving 537 passenger carriages manufactured by Stadler. Additionally, by 2026, KTZ plans to purchase 3,000 freight wagons, addressing its operational challenges.

Financial Challenges and IPO Preparations for KTZ

KTZ faces significant financial challenges due to a sharp increase in debt over the last decade. The company’s debt has grown 2.5 times in 10 years, putting it in the high-risk category.

In 2024, the government of Kazakhstan included KTZ in its privatization plan, aiming for an IPO in 2025. This move is expected to attract investors and stabilize the company’s financial position.

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