National railway operator of Kazakhstan KTZ (Kazakhstan Temir Zholy), draws attention with its large-scale investments, modernization projects and financial restructuring moves. The company is taking bold steps to modernize its infrastructure and increase its operational efficiency, while also preparing to implement its initial public offering (IPO) plan in 2025.
Issuance of Bonds and Purchase of New Shares
KTZ, total value in the domestic market 75 billion tenge ($150 million) plans to issue bonds.
- Par value of bonds: 1.000 tenge.
- Goal: Financing the company's investment and operational costs.
In addition, the company Board of Directors, Samruk Kazyna for 13,3 billion tenge ($26 million) by 1.000 KTZ shares approved the acquisition. This investment aims to strengthen the company's capital structure.
Fleet Renewal and Modernization
KTZ in 2023 Center for Restorative Medicine and Rehabilitation (CRMR) 200 new locomotives signed a $1,3 billion contract for:
- 100 main line locomotives.
- 100 shunting locomotives.
- Deliveries Up to 2029 will be completed.
The second reason to use the 1.200 new passenger wagons by purchasing the total capacity of the fleet Increase to over 3.000 units With this investment, we aim to:
- Fleet attrition rate It will drop from 44% to 38%.
- Passenger service will improve significantly.
Stadler Produced by 537 passenger cars, will start to be delivered from 2025. The company, 2026 freight wagons by 3.000 It plans to increase its freight transport capacity by purchasing more.
Financial Difficulties and Debt Burden
KTZ, whose debt ratio has increased significantly in the last decade, by increasing their debts by 2,5 times entered a high-risk category.
- This threatens the company's long-term growth plans.
- The Kazakh government, in order to ensure the financial stability of KTZ and reduce its debt burden, Included in privatization plan in 2024.
2025 IPO Plans
The initial public offering (IPO) is seen as an important step to improve KTZ's financial situation and increase investor interest.
- Goal: Diversify the company's financing sources and reduce its debt burden.
- Expectation: To attract the attention of international investors in parallel with the economic growth of Kazakhstan.
Regional and Global Role of KTZ
KTZ is an important logistics hub between Asia and Europe, thanks to the geographical location of Kazakhstan. Therefore:
- Modernization investments will increase international freight transportation capacity.
- Improvements in railway infrastructure will contribute to regional economic growth.
Modernization and Growth Strategy
KTZ’s bond issuance, fleet modernization and IPO plans are aimed at increasing the company’s operational capacity and ensuring its financial stability. These moves are of great importance not only for Kazakhstan but for the entire logistics network in the region.
While KTZ prepares for the future with modernization, it aims to become a stronger player in the international arena with its IPO move. This strategy could make Kazakhstan's transportation infrastructure an indispensable part of global trade.
