US Ex-Im Bank and Kazakhstan Temir Zholy (KTZ), Kazakhstan’s state-owned national railway company, have signed financing documents in support of the sale by General Electric of 200 locomotive kits to KTZ.
The documents support a US$122mn long-term loan guarantee approved by Ex-Im Bank’s board of directors last month to finance KTZ’s purchase of the GE locomotive kits. ABN Amro is the guaranteed lender on the transaction.
KTZ is the first non-bank government-owned company in Kazakhstan to receive US Ex-Im Bank-supported financing without a sovereign guarantee.
KTZ will use the kits to refurbish 100 of its 18-year-old model 2TE10 locomotives, extending their useful lives for another 15-20 years. Ex-Im also helped finance KTZ’s purchase of 54 modernisation kits in 2003.