Freedom Holding Corp. has entered into a material investment agreement with Kokzhiyek Fund LP for a private placement of up to $1.16 billion in U.S. dollar-denominated bonds. The proceeds are designated to finance seven specific investment projects in sectors including data centers, artificial intelligence, and telecommunications infrastructure.
Key Details
- Transaction: The company's subsidiary will issue up to $1.16 billion in bonds to Kokzhiyek Fund LP, an investment fund managed by Qazaqstan Investment Capital Management Ltd.
- Bond Terms: The bonds will have a five-year maturity and bear interest at a rate of 7.8% per annum, payable semi-annually.
- Use of Proceeds: Funds will be held in an escrow account and released in stages through December 30, 2028, to finance seven specified projects. The company is required to co-invest at least 20% of the aggregate bond amount.
- Guarantees & Covenants: The bonds are guaranteed by Freedom Holding Corp., a subsidiary, and CEO Timur Turlov. The company is also subject to financial covenants, including a maximum corporate debt-to-equity ratio of 3.5x, effective from the fiscal year ending March 31, 2027.