The European Bank for Reconstruction and Development (EBRD) announced last week that it has taken part in the longer-term tranche of a Eurobond issuance by Kazakhstan's national railway company, Kazakhstan Temir Zholy (KTZ).
The proceeds of the bond issuance will help finance logistics infrastructure around the country, including on its border with China, in order to facilitate increased cargo transit.
"We are pleased with this successful issuance of the Eurobond by KTZ," Janet Heckman, the EBRD director for Kazakhstan, said. "The proceeds will be invested in better logistics infrastructure, which will improve the quality of transportation and help to remove physical and non-physical barriers to trade along the route from China to Europe, once known as the Silk Road."
As part of the project, the bank will help KTZ structure the first logistics hub public-private partnership project in one region and offer assistance in improving the corporate governance practices of KTZ's logistics operator, KTZ Express.
Kazakh Railways completed the placement of a Swiss franc-denominated Eurobond on the SIX Swiss Exchange late last month.