In addition to maintenance of Kaztemirtrans' existing fleet, the loan is also intended to finance the acquisition of 1000 new wagons that will help to improve efficiency and lower long-term maintenance costs. Grant financing from the bank's shareholder fund is also included in the project to help KTZ strengthen its corporate finance.
Kaztemirtrans owns KTZ's wagon fleet, and leasing rolling stock to the national operator is the major portion of its business. Almost 70% of the company's in-service rolling stock is more than 20 years-old and needs to be replaced.
"This investment will help Kaztemirtrans improve its business operations and become an operationally independent freight operator," says Mr Kanat Alpysbayev, vice president of finance for KTZ, during the signing ceremony in London.