The European Bank for Reconstruction and Development (EBRD) on February 14 said it has invested $41.99 million into shares of Kazakhstan’s flagship carrier, Air Astana, supporting the country’s first partial privatisation through an initial public offering (IPO). The EBRD’s investment represents a 5 per cent shareholding in Air Astana.
The shares will be listed on both the London Stock Exchange and the Kazakhstan Stock Exchange.
The IPO funds, including the Bank’s investment, will be deployed to support Air Astana’s fleet expansion and renewal programme, the construction of an aircraft maintenance facility and the acquisition of a flight simulator.
The IPO is a significant privatisation benchmark for Kazakhstan’s economy, which is predominantly controlled by the state, the EBRD said.
The EBRD, which became fully aligned with the Paris Agreement at the start of 2023, will be working with Air Astana towards achieving its target of becoming carbon neutral by 2050. The Bank will also use this opportunity to play a greater role in the decarbonisation of aviation and to assist in setting up the sustainable aviation fuels industry in Central Asia.
With €10 billion invested in the country to date through 317 projects, Kazakhstan is the EBRD’s largest and longest-running banking operation in Central Asia.
