Freedom Holding signs deal for Kokzhiyek Fund to buy up to $1,160,000,000 of bonds
The bonds mature in five years, pay 7.8 per cent a year and will be listed on the Astana International Exchange.
Published
Freedom Holding and its subsidiary, FRHC-IF.SPC Ltd., have agreed to sell bonds to Kokzhiyek Fund LP. The fund will buy U.S. dollar bonds worth up to $1,160,000,000 in total. The agreement was signed on October 23.
The bonds will be listed on the Astana International Exchange. They mature five years after issue and pay 7.8 per cent a year. The money will fund seven named projects: data centers, an artificial intelligence supercluster, telecommunications infrastructure, media, urban technology and cross-border trade.
Freedom Holding, its subsidiary Freedom Kazakhstan Ltd., and chief executive and chairman Timur Turlov guarantee the bonds.
Turlov had been weighing U.S. dollar and Chinese yuan bonds to pay for telecom and data center expansion, possibly sold to U.S. investors. The deal narrows that plan. It is in U.S. dollars alone, with one buyer for up to $1,160,000,000 and a listing in Astana. The guarantees from the parent, Freedom Kazakhstan and Turlov extend repayment support to the group and its chairman. That bears on credit exposure if the seven projects take longer to return the money.
© Raydn · raydn.us