Freedom Finance SPC, a subsidiary of Freedom Holding Corp., has announced it will list three-year dollar-denominated bonds on the AIX exchange with an annual coupon of 8.5%. Each bond has a face value of $100, making the instrument accessible to a broad range of investors, with interest paid quarterly, according to infohub.kz.
The placement is scheduled for September 21. The total volume of the current issue is estimated at $500 million. This is the second tranche under a bond program with a total size of $1 billion.
Earlier, in March, Freedom Finance announced a placement of bonds at a similar price worth $400 million. At that time, the securities were offered as an investment tool: they could be purchased on the Freedom Broker trading platform after opening a brokerage account and submitting a trade order in the investment section.
It is noted that buying the bonds could serve as a way to invest dollar savings. For comparison, the maximum rate on foreign-currency deposits for individuals is 1%. On the Kazakhstan Stock Exchange, dollar bonds trade with yields of up to 11–12%, but the minimum price per bond may be higher, and a broker is required to make a purchase.