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Kazakhstan: EDB, DBK to finance construction of Saryarka gas pipeline

Kazakhstan: EDB, DBK to finance construction of Saryarka gas pipeline

Nur-Sultan, July 9 - Neftegaz.RU.
The Eurasian Development Bank (EDB) and the Development Bank of Kazakhstan have opened financing to construct Phase 1 of the Saryarka gas pipeline in Kazakhstan, The Times of Central Asia reported.

According to the financing scheme approved by the banks, the EDB, as the syndicate leader, purchased AstanaGas KMG’s 10-year bonds for a total of KZT 102 billion. The transaction was financed from the EDB’s own funds in the amount of KZT 51 billion, and a loan for the same amount from the DBK. Hence, the total project financing extended by the DBK and EDB amounted to KZT 102 billion, and the total project cost is KZT 267.3 billion.

The project is being financed through a bond programme, which includes two bond issues, for KZT 85 and 102 billion, respectively. The 1st issue was successfully placed in December 2018. The financial advisor and project underwriter is SkyBridge Invest.

The project aims to achieve Kazakhstan’s strategic objectives in ensuring the country’s energy security, reliable and uninterrupted gas supplies to the central and northern regions, and improvement of the environment. Financing will also cover the construction of the Kyzylorda–Zhezkazgan–Karaganda–Termirtau–Astana gas pipeline to ensure gas supplies to Astana, and the country’s central and northern regions.

In particular, it is planned to gradually ensure gas supplies to 171 towns and villages located along the 1st section of the pipeline. The project plans to create up to 900 jobs during the construction phase, and 194 jobs during the operation phase.

EDB is an international financial institution founded by Russia and Kazakhstan in 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. The EDB's charter capital totals US $7 billion. The member states of the Bank are Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.

The Development Bank of Kazakhstan (DBK) is a national development institution established in 2001 to modernise and develop the non-primary and infrastructure sectors of Kazakhstan’s economy.