Kazakh Rail Monopoly’s Unit Agrees to Borrow 800 Million Euros
AO Locomotiv, a unit of Kazakhstan’s state-run railroad monopoly, agreed to borrow more than 800 million euros ($993 million) from a group of banks to buy electric locomotives built using Alstom SA (ALO) technologies.
The loan, which was organized by HSBC Holdings Plc (HSBA), will be provided in separate installments over the next several years and be guaranteed by French trade-credit insurer Coface SA, AO Kazakhstan Temir Zholy National Co. said on its website.
Citigroup Inc. (C) and Bank of Tokyo-Mitsubishi UFJ Ltd. will take part in financing the first tranche of the facility, according to an agreement signed on May 31, the Astana-based company said.
The locomotives will be built in Kazakhstan using the technologies and equipment provided by Alstom, the company said.
To contact the reporter on this story: Nariman Gizitdinov in Almaty at ngizitdinov@bloomberg.net
To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net
Rate this Page
Bloomberg moderates all comments. Comments that are abusive or off-topic will not be posted to the site. Excessively long comments may be moderated as well. Bloomberg cannot facilitate requests to remove comments or explain individual moderation decisions.