Almaty, Kazakhstan, January 29, 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 to 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.
"Supporting infrastructure investments and transport logistics is one of our main priorities in Kazakhstan," said Moazzam Mekan, IFC Regional Manager for Central Asia. "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."
Marat Sarsenov, Chairman of Eastcomtrans, said, "Our company aims to increase the volume of transportation and expand the railcar fleet each year. With IFC's financing we will be able to diversify our fleet and client base while making the business more sustainable."
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.
Eastcomtrans is one of the largest private railway operators in the transport market of Kazakhstan and has been operating since 2003. The company provides a full range of freight railway services for export, import and domestic traffic. It has been a leader in providing oil products transportation services by railway. For more information, visit www.ect.kz
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world's most pressing development challenges. For more information, visit www.ifc.org.
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