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 technologies.

The loan, which was organized by HSBC Holdings Plc, 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. 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.

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