Freedom Holding Corp. weighs issuing bonds on Hong Kong Stock Exchange to finance telecommunication projects in Kazakhstan
Freedom Holding plans to enter the capital market of Hong Kong to raise funds needed for financing telecommunication projects by Freedom Telecom, as reported by the South China Morning Post.
In an interview with the Chinese media outlet, Timur Turlov, CEO of Freedom Holding, explained that Freedom has partnered with China International Capital Corp. to issue dim sum bonds, a financial instrument denominated in offshore yuan. Furthermore, the corporation may consider an initial public offering (IPO) in Hong Kong.
«What brought us to Hong Kong is the need to raise financing for our telecommunications strategy. The renminbi interest rate is lower than the U.S. dollar rate, and we will need renminbi to pay Huawei and ZTE Corp. for equipment,» Turlov said in an interview with the media outlet, between meetings with representatives of the Hong Kong Stock Exchange and the Securities and Futures Commission.
It is not yet clear how much the company plans to raise on the exchange. However, Freedom Telecom had earlier announced its intention to allocate $236 million to two projects in Kazakhstan by the end of 2027. These include a so-called “hyper highway,” valued at $35.6 million, which will transfer data from western Kazakhstan to the country’s east and two Tier III data processing centers, costing $188.8 million.
«The hyper highway is ‘the final piece’ needed to fully connect Central Asia with the Middle East and Europe. We want to participate in building this transit backbone. There’s definitely not enough connectivity in our country yet,» Turlov said
He also noted that the new cable should offer a shorter route from the Chinese border to the Caspian Sea, bypassing major cities to ensure smooth data transit.
«Hong Kong has always been a benchmark in terms of financial services, with prudent regulation. We understand the key role Hong Kong is now playing, especially in capital markets, in connecting global stock markets,» said Kairat Kelimbetov, the company’s strategic adviser.
Turlov also mentioned that Freedom plans to provide its clients with access to the Stock Exchange of Hong Kong within the next six to twelve months.
Kazakhstan’s national telecommunication operator, Kazakhtelecom, has already started working on the construction of a 370-kilometer fiber optic communication line (FOCL) at the bottom of the Caspian Sea, in collaboration with AzerTelecom. The communication line will stretch from Aktau to Sumgait in Azerbaijan.
It is expected that Freedom’s national hyperhighway and the FOCL will be combined into a single telecommunication corridor called the «New Route,» which will connect China, Kazakhstan, Azerbaijan, Georgia, Turkey and Europe. This new route is set to become an alternative for the international data transport system from Western Europe to Southeast Asia, offering a reliable and high-speed connection for data transfer.
