EBRD Invests Nearly $42 Million into Air Astana’s Shares
On February 14, the European Bank for Reconstruction and Development (EBRD) announced an investment of $41.99 million in shares of Kazakhstan's leading airline, Air Astana. This investment represents a minority stake of 5% acquired through the country's inaugural partial privatization via an initial public offering (IPO).
The funds raised, including the EBRD’s investment, will support Air Astana's fleet expansion and renewal program, the construction of an aircraft maintenance facility, and the acquisition of a flight simulator.
Air Astana aims to increase its current fleet to 80 aircraft by 2029 through the utilization of new fuel-efficient planes.
The IPO, by reducing the state’s ownership to below 50%, encourages greater private sector involvement and offers opportunities for institutional and private investors interested in Kazakhstan and Central Asia.
In addition to financial backing, the EBRD’s investment aligns with the Paris Agreement. Collaborating with Air Astana, a regional leader in sustainability, the EBRD aims to contribute to the airline’s objective of achieving carbon neutrality by 2050.(Source:astanatimes)
Through this partnership, the EBRD intends to play a significant role in advancing decarbonization efforts in aviation and promoting the development of sustainable aviation fuels in Central Asia.
Kazakhstan remains the EBRD’s largest and most enduring banking operation in Central Asia, with investments totaling 10 billion euros ($10.7 billion) across 317 projects in the country.
