Freedom Holding lands $1.16B bond deal to fund Kazakhstan AI build-out
What's the deal? Freedom Holding has agreed to issue up to $1.16 billion in five-year bonds to Kokzhiyek Fund LP, a state-affiliated investor in Kazakhstan. The bonds carry a 7.8% annual coupon and will be listed on the Astana International ExchangeDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Proceeds are ring-fenced for seven projects: an artificial intelligence supercluster, data centers, telecommunications infrastructure, media, urban technology, and cross-border trade. The deal fits Freedom's rapid push into Kazakhstan's digital infrastructure, including a planned $2 billion sovereign AI hub and GPU cloud slated to launch in 2027.
Why it stands out: At $1.16 billion, the raise sits in the top 7% of all post-IPO debt deals in Kazakh fintech by amount, according to a sample of 763 comparable rounds.
Who's backing it? Kokzhiyek Fund LP sits within the Baiterek national holding group and is managed by Qazaqstan Investment Capital Management. Freedom Holding, subsidiary Freedom Kazakhstan, and chief executive officer Timur Turlov—its chairman and majority shareholder—guarantee the obligations.
What could go wrong? The headline figure is a ceiling, not cash in hand. Proceeds sit in escrow and are released in stages through December 30, 2028, each requiring the fund's approval and sign-off from an independent controller; any undisbursed amount triggers early redemption.
Freedom must also fund the projects itself, contributing at least 20% of total costs, and hold its debt-to-equity ratio at or below 3.5x from the fiscal year ending March 31, 2027. Missed coupon payments left unpaid for 90 days could, in years two to four, force issuance of common stock to settle unpaid interest.
The signal: Kazakhstan is courting large-scale compute investment, with competing data-center projects and state-backed vehicles making access to capital, power, and chips strategically important. The bond ties Freedom's balance sheet to the country's AI ambitions—with execution now resting on project economics as much as on the commitment itself.
Read more: kalkinemedia.com
Image credit: Idaho National Laboratory
