The European Bank for Reconstruction and Development (EBRD) will invest up to $100m in a local currency bond issue of Kazakhstan Railways (KTZ).

The investment will help the state rail and port operator restructure its balance sheet and implement crisis response measures, including reorganising its transit freight operations.

KTZ will use the funds to modernise key infrastructure along the Middle Corridor for rail container transport.

"By investing in the local bond issue of Kazakhstan Railways, the EBRD is improving the sustainability of a major domestic company. It is also contributing to better regional and international connectivity and trade security, as the Middle Corridor offers one of the few realistic alternatives for China-Europe rail freight transportation," Huseyin Ozhan, EBRD's Head of Kazakhstan, underlined.

Photo: Kazakhstan Railways