Kazakh Tycoon Turlov’s Freedom Raises $300 Million for Expansion

Kazakh billionaire Timur Turlov's Freedom Holding Corp. has successfully raised $300 million through a bond issuance. This capital injection is earmarked for accelerating the company's aggressive expansion strategy across multiple sectors and geographies. The bond issuance is part of a broader plan to raise up to $500 million to $800 million, with a focus on U.S. investors.

The funds will primarily support a series of strategic acquisitions and investments. In Kazakhstan, Freedom Holding plans to acquire another bank, comparable in size to Freedom Bank which has approximately $5 billion in assets and $500 million in capital, and a local marketplace to bolster its e-commerce presence. Internationally, the company has recently secured regulatory approval to acquire 99.32% of Turkish Bank A.Ş., with overall plans to invest about $300 million in developing its ecosystem in Turkey, where it sees a potential customer base four to five times larger than Kazakhstan's.

A significant portion of the raised capital, specifically up to $300 million, is designated for technology investments. This includes developing telecommunications infrastructure and data centers, with a planned expenditure of up to $100 million solely for chips for a new sovereign AI hub in partnership with Nvidia. These investments aim to build out cloud services for major companies like Amazon and Microsoft, as well as government agencies.

Despite high interest rates of around 9% for direct bond issuances from Freedom Bank, the holding company opted to issue bonds through the parent company, targeting U.S. investors for better terms. Turlov had previously considered yuan-denominated dim sum bonds but found dollar-denominated options more attractive. The company is actively pursuing growth by building a comprehensive digital ecosystem that encompasses brokerage services, banking, insurance, and lifestyle services, and is also exploring expansion of its SuperApp into the U.S. market, evaluating options like obtaining a fintech license or partnering with a local bank.