KTZ Floats $1 Billion Eurobond to Fund Massive Central Asian Rail Expansion

EBRD investment in KTZ bonds will reach up to USD 125 million. KTZ, Kazakhstan’s national railway operator, is issuing the Eurobond. The financing will support passenger station modernization in Kazakhstan. Also, it will support infrastructure works on the Trans-Caspian Corridor. The route is becoming increasingly important for transport between Europe and Asia. This is reported by the railway transport news portal Railway Supply.

KTZ’s Eurobond issue is worth up to USD 1 billion. It has been listed on the London and Kazakhstan stock exchanges. The EBRD says the investment is intended to improve regional connectivity in Central Asia. It is also intended to increase the operational efficiency of the Kazakh railway company.

How EBRD investment in KTZ bonds supports stations?

Funds raised through the bond issue will be used to modernize passenger stations in Kazakhstan. The planned works are expected to focus on safety improvements. In addition, they are expected to increase passenger throughput capacity and upgrade lighting systems.

The EBRD-supported project also specifically includes better access for people with disabilities. Together, the station works are tied to passenger-facing improvements. They are also tied to more efficient railway network operations in Kazakhstan. Rail transport plays an important role in the country’s domestic and international movement.

Trans-Caspian Corridor infrastructure works

Some bond-financed infrastructure work will be carried out along the Trans-Caspian Corridor. The corridor is also known as the Middle Corridor. The route connects China and Central Asia to Europe. It runs via the Caspian Sea, the Caucasus, and Turkiye. In recent years, it has been promoted as an alternative to traditional Eurasian transport routes.

The EBRD says these investments will contribute to more sustainable rail transport between Europe and Asia. At the same time, Kazakhstan’s position on the corridor is strategic. The country is one of the main transit points between Asian and European markets.

KTZ owns and operates a 16,400-kilometer rail network. It manages more than 1,700 locomotives, 46,800 freight cars, and 2,300 passenger cars. That makes it one of the largest rail operators in the region.

International standards and cybersecurity support

Separately, the EBRD will mobilize technical cooperation funds. These funds will help KTZ adopt international standards in passenger rail transport.

Also, this support will include measures to strengthen the company’s cybersecurity. The issue is becoming increasingly important for rail operators. Operations, information systems, and ticketing services are becoming more digital.

To date, the EBRD has invested nearly EUR 11 billion in Kazakhstan through 352 projects. According to RailwayPro, Kazakhstan is EBRD’s largest and longest-standing investment recipient in Central Asia.

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