Kazakhstan Temir Zholy (KTZ) is developing a bond program on the London Stock Exchange (LSE) for up to three billion dollars. This is not a one-time issue, but a base program allowing the company to raise debt in various tranches, reports Todayinfo.
According to the documents, the securities are also planned to be placed on the KASE and/or AIX exchanges. The guarantors are the carrier's subsidiaries — Kaztemirtrans and KTZ – Freight Transportation.
In the document for investors, KTZ acknowledges its liquidity issues. At the end of 2025, the group's current liabilities exceeded current assets by 963 billion tenge. According to the company's assessment, a decline in revenue could lead to a shortage of working capital and default on debt obligations.
A separate section of the document is devoted to dependence on the state and the Samruk-Kazyna fund — the company's sole shareholder. KTZ notes that it receives significant support in the form of subsidies, grants, soft loans, and capital contributions. By the end of 2025, the total volume of such support reached 1.8 trillion tenge.
In addition, the company points out infrastructure problems. At the beginning of 2025, the wear and tear of the main railway network was 57%, locomotives — 49.1%, and freight cars — 53.6%. Some locomotives were manufactured back in the 1980s, so fleet renewal requires large expenditures.
Another risk is sanctions related to cooperation with Russia and Belarus. KTZ acknowledges the close interconnection of the railway systems of the three countries: trains pass through the territory of Russia and Belarus, and the company itself interacts with the sanctioned Russian Railways and Belarusian Railway.
