ASTANA – The European Bank for Reconstruction and Development (EBRD) has invested $41.99 million into shares of Kazakhstan’s flagship carrier, Air Astana, acquiring a minority stake of 5% through the country’s first partial privatization via an initial public offering (IPO), the EBRD’s press service reported on Feb. 14.
Photo credit: EBRD.
The shares will be listed on both the London Stock Exchange and the Kazakhstan Stock Exchange.
The funds raised, including the EBRD’s investment, will be used to support the airline’s fleet expansion and renewal program, the construction of an aircraft maintenance facility, and the acquisition of a flight simulator.
Air Astana will be aiming to grow its current fleet to 80 aircraft by 2029 by leveraging new fuel-efficient planes.
By reducing the state’s ownership to less than 50%, the IPO fosters greater private sector participation and opens doors for institutional and private investors seeking opportunities in Kazakhstan and Central Asia.
Beyond financial support, the EBRD’s investment aligns with the Paris Agreement. Partnering with Air Astana, a regional corporate leader in sustainability, the EBRD aims to contribute to the airline’s goal of achieving carbon neutrality by 2050.
With this, the EBRD is set to play a greater role in decarbonizing aviation and promoting the development of sustainable aviation fuels in Central Asia.
Kazakhstan stands as the EBRD’s largest and longest-running banking operation in Central Asia, with 10 billion euros ($10.7 billion) invested in the country through 317 projects.
