The financing will support the modernization of passenger stations and infrastructure works on the Trans-Caspian Corridor, an increasingly important route for transport between Europe and Asia.
KTZ’s Eurobond issue is worth up to USD 1 billion and has been listed on the London and Kazakhstan stock exchanges. EBRD notes that the investment aims to improve regional connectivity in Central Asia and increase the operational efficiency of the Kazakh railway company.
Modernized stations and better access for passengers
The funds raised through the bond issue will be used to modernize passenger stations in Kazakhstan. The work is expected to focus on improving safety, increasing passenger throughput capacity, and modernizing lighting systems.
Another key objective is improving access for people with disabilities, a feature explicitly mentioned in the EBRD-supported project. The modernization of the stations should also contribute to more efficient network operations in a country where rail plays a major role in domestic and international transport.
Investments on the Trans-Caspian Corridor
Part of the infrastructure work financed by the bonds will take place along the Trans-Caspian Corridor, also known as the Middle Corridor. The route connects China and Central Asia to Europe via the Caspian Sea, the Caucasus, and Turkiye, and has been promoted in recent years as an alternative to traditional Eurasian transport routes.
The EBRD maintains that these investments will contribute to more sustainable rail transport between Europe and Asia. For Kazakhstan, its position on this corridor is strategic, as the country is one of the main transit points between Asian and European markets.
KTZ owns and operates a 16,400-kilometer rail network. The company manages over 1,700 locomotives, 46,800 freight cars, and 2,300 passenger cars, making it one of the largest rail operators in the region.
Support for International Standards and Cybersecurity
In addition to the bond investment, the EBRD will also mobilize technical cooperation funds to help KTZ adopt international standards in passenger rail transport.
This component will also include support for strengthening the company’s cybersecurity. The issue is becoming increasingly important for rail operators, given the digitization of operations, information, and ticketing systems.
To date, the EBRD has invested nearly EUR 11 billion in Kazakhstan through 352 projects. According to the financial institution, Kazakhstan is the largest and longest-standing recipient of EBRD investments in Central Asia.
