Related News

Sole arranger and lender ABN Amro has arranged a US Ex-Im Bank-supported loan of U$31mn to support the export by General Electric Co of locomotive modernisation kits to Kazakhstan Temir Zholy (KTZ), Kazakhstan’s state-owned national railway.

KTZ will use the kits to refurbish 27 of its model TE-10 locomotives, extending their life by 15-20 years. KTZ is modernising its railways to meet the increased demand for freight and passenger traffic created by economic development.

“This is US Ex-Im’s first transaction with KTZ, and the first time that it has provided financing for a non-bank, government-owned company in Kazakhstan without a sovereign guarantee,” says Ex-Im first vice-president and vice-chair April Foley.

Ingrid Cijsouw, head of CEE cross-border structured finance at ABN Amro, says: “The financing is a landmark deal as it is the first long-term financing obtained by KTZ without a sovereign guarantee. The transaction is also asset-backed with a pledge on the modernised locomotives.”

One deal ABN arranged in Kazakhstan in November was for CJSC Altel, guaranteed by OJSC Kazakhtelecom. The seven-year loan was for U$15.2mn and involved the supply of telecoms equipment from Ericsson. The loan was backed by Swedish ECA EKN. No other banks were involved.