EBRD Purchases 5% Stake in Air Astana, Aims for Sustainability and Expansion
The EBRD has invested US$ 41.99 million into shares of Kazakhstan's flagship carrier, Air Astana, supporting the country's first partial privatisation through an initial public offering (IPO).
The European Bank for Reconstruction and Development (EBRD) has acquired a 5% stake in Air Astana through an initial public offering (IPO) valued at $41.99 million, according to an announcement by the bank.
This marks the EBRD’s first investment in airline shares, positioning the bank as a minority shareholder in Air Astana. The funds from the IPO, including the EBRD’s investment, are earmarked to support various initiatives within Air Astana, including fleet expansion and renewal, construction of aircraft maintenance facilities, and procurement of a flight simulator.
The decision to back Air Astana’s IPO stems from the EBRD’s belief that reducing the state’s stake in the airline to less than 50% will set a crucial precedent for Kazakhstan and the wider region. Additionally, the participation of an investor with a AAA rating, such as the EBRD, is expected to instill confidence among institutional and private investors seeking opportunities in Kazakhstan and Central Asia.
Furthermore, the EBRD, which has been fully aligned with the Paris Agreement since early 2023, is committed to collaborating with Air Astana to achieve carbon neutrality by 2050. As part of this effort, the bank aims to play a significant role in the decarbonization of aviation and assist in the development of a sustainable aviation fuel (SAF) industry in Central Asia.
Air Astana has outlined ambitious goals for the near future, including expanding its fleet to 80 aircraft by 2029 through the acquisition of new, fuel-efficient airliners.
This investment adds to the EBRD’s extensive portfolio in Kazakhstan, where it has invested €10 billion through 317 projects to date. Kazakhstan remains the largest and longest-running banking operation for the EBRD in Central Asia.
