IFC Supports Rail Infrastructure in Kazakhstan, Boosting Trade and Industry
Almaty, Kazakhstan, January 28, 2013—IFC, a member of the World Bank Group, is providing $50 million in financing to Eastcomtrans, the largest railcar leasing company in Kazakhstan, to help expand its railcar fleet, broadening commercial logistics services and helping develop the country’s infrastructure for trade and industry.
This investment, comprising $20 million of equity and $30 million of debt finance, will help Eastcomtrans expand its operations and meet the growing demand for new and reliable railcars in the country. Most of Kazakhstan’s domestic railcar fleet is approaching retirement age.
“Our company aims to increase the volume of transportation and expand the railcar fleet each year,” said Marat Sarsenov, Chairman of Eastcomtrans. “With IFC’s financing we will be able to diversify our fleet and client base while making the business more sustainable.”
Moazzam Mekan, IFC Regional Manager for Central Asia, said, “Supporting infrastructure investments and transport logistics is one of our main priorities in Kazakhstan. This first IFC investment in the country’s railway sector will help increase the quality and availability of rail transportation, which is crucial to bring down costs and increase transport reliability in vast Kazakhstan.”
Kazakhstan became a member of IFC in 1993 and is IFC’s largest client in Central Asia. This new deal raises IFC’s portfolio in Kazakhstan to around $379 million, with investments in financial markets, manufacturing, and services sectors.