The European Bank for Reconstruction and Development (EBRD) has made a significant investment in Kazakhstan's leading airline, Air Astana, as part of the country's first partial privatization through an initial public offering (IPO). With an investment of $41.99 mn, the EBRD has acquired a 5% stake in Air Astana, Anton Usov, EBRD Chief Spokesman Central Asia and Mongolia reported on February 13.
The IPO marks a pivotal moment for Kazakhstan's economy, which has traditionally been dominated by state-controlled enterprises. By reducing the state's ownership in Air Astana to less than 50%, the IPO sets a crucial precedent for further privatization efforts in the country and the wider region.
The participation of the EBRD, a AAA-rated investor, in the IPO is expected to instill confidence in institutional and private investors considering opportunities in Kazakhstan and Central Asia. The EBRD's alignment with the Paris Agreement underscores its commitment to sustainability, and it will work closely with Air Astana to achieve its goal of becoming carbon neutral by 2050.
Moreover, the EBRD sees this investment as an opportunity to play a leading role in the decarbonization of aviation and to promote the development of sustainable aviation fuels in Central Asia. By leveraging its expertise and resources, the EBRD aims to support the growth of a more environmentally sustainable aviation industry in the region.
Earlier Daryo reported that the Air Astana Group, acknowledged as the foremost airline group in Central Asia and the Caucasus region based on market share, has achieved a notable milestone with the initiation of conditional trading of Global Depositary Receipts (GDRs) on the London Stock Exchange. This development, accompanying its Initial Public Offering (IPO) and triple listing on the London Stock Exchange, Kazakhstan Stock Exchange, and Astana International Exchange, highlights the company's impressive accomplishments over the preceding two decades.
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