ASTANA: The European Bank for Reconstruction and Development (EBRD) has bought a 5% stake in Air Astana, Kazakhstan’s national airline, for $41.99 million. This is part of the country’s first partial privatization through an initial public offering (IPO) on the London and Kazakhstan stock exchanges, announced by the EBRD.
The EBRD’s funds, along with other proceeds from the IPO, will help Air Astana expand and modernize its fleet, build a new aircraft maintenance facility, and acquire a flight simulator. The airline plans to increase its fleet to 80 aircraft by 2029, using more fuel-efficient models.
The IPO also reduces the state’s ownership in Air Astana to below 50%, encouraging more private sector involvement and attracting investors interested in Kazakhstan and Central Asia.
Additionally, the EBRD’s investment supports Air Astana’s commitment to sustainability and carbon neutrality by 2050, in line with the Paris Agreement. The EBRD will work with Air Astana, a regional leader in green aviation, to advance the use of sustainable aviation fuels in Central Asia.
The EBRD is a major partner of Kazakhstan, having invested 10 billion euros ($10.7 billion) in 317 projects in the country since 1991.
