Kazakhstan’s KTZ railway company has signed a loan agreement with the Abu Dhabi Commercial Bank and Deutsche Bank for up to 480 million Swiss francs (about $595.5 million). The funds will be used to finance key infrastructure projects along the Trans-Kazakhstan corridor. The deal was organized with the support of the sovereign wealth fund Samruk-Kazyna, which fully owns KTZ.
The three-year financing will speed up the construction of new sections, including the Moiynty-Kyzylzhar line, and modernize congested routes in order to increase throughput. Part of the funds will be used to refinance the company’s current debts.
KTZ notes that the development of the Trans-Kazakhstan corridor is of strategic importance for strengthening Kazakhstan’s role in the routes between China and Europe. Today, more than 80% of rail freight from China to Europe passes through the republic along the Trans-Caspian international transport route.