BAKU, Azerbaijan, March 1. Kazakhstan’s national railway operator “Kazakhstan Temir Zholy” (KTZ) and its subsidiaries signed credit deals with a syndicate of banks comprised of Société Générale and Natixis for the purchase of electric locomotives, Trend reports, citing KTZ.
The funds provided will enable the national railway operator to procure 100 electric locomotives produced in Kazakhstan. The locomotives will be supplied from 2023 through 2029. KTZ expects that the new locomotives will enable the company to offer a higher quality of service to its customers.
The interest rate on the loan is Euro Interbank Offered Rate (EURIBOR) + 1.15 percent with a tenor of 14 years with a grace period.
The credit agreement has been signed with the support of the Ministry of Finance of France, and BPIFrance export credit agency acting as the Loan Insurer.
Modernization of the technical base and infrastructure is one of the priorities of Kazakhstan Temir Zholy. Earlier, KTZ signed agreements with OneWeb, the satellite communication provider, and StadlerRail on the matter of the purchase of locomotives.