EBRD explains why it bought 5% of Air Astana shares and how this affects investors
The European Bank for Reconstruction and Development (EBRD) has acquired a 5% stake in Air Astana. This investment, totaling $42 million, was made as part of the company’s IPO, as confirmed by the bank to Kursiv.media.
«The EBRD’s acquisition of shares in the company is excellent news for all investors due to our AAA rating. The presence of such a reputable investor will have a positive impact on the company’s stability and attractiveness to investors,» the company stated.
According to the bank, it invests in companies aligned with its strategic objectives. Regarding Air Astana, the EBRD views the airline not just as a Kazakhstani carrier but as a regional one.
«We are committed to collaborating with the company on decarbonization efforts. Since 2023, the EBRD has mandated that all its loans and investments align with the Paris Agreement. Air Astana plans to acquire approximately 80 new aircraft by 2029, expected to be 20% more fuel-efficient. Additionally, Air Astana aims to become a carbon-neutral company. Drawing upon our extensive expertise in this area, we will provide the necessary assistance to Air Astana,» the bank stated.
For instance, the bank is partnering with KazMunayGas and Air Astana to promote the production and use of sustainable aviation fuels (SAF) in Central Asia.
«Furthermore, we are supporting privatization, which is also an important trend in Kazakhstan. The government’s stake in the airline has now dropped to less than 50%, setting a positive example for other companies and investors considering whether to enter the Kazakhstan and Central Asian markets,» the EBRD added.
In early February 2024, Air Astana initiated its IPO process, which had been anticipated for several years. On February 9, conditional trading of the airline’s global depository receipts (GDR) commenced on the Astana International Exchange (AIX) and the London Stock Exchange (LSE). Simultaneously, pre-market trading of the company’s stock began on the Kazakhstan Stock Exchange (KASE).
The final pricing for the company’s GDR and shares was set at $9.50 and $2.38, respectively. Each GDR entitles its holder to possess four shares. Consequently, the company is expected to raise $350 million in securities (before taxes and expenses), or $370 million if the option for additional placement is fully exercised. Air Astana itself aims to raise $120 million for further business development.
