Kazakhstan's Telecoms Giant Taps Hong Kong's Capital Market for Infrastructure Boost

One of Kazakhstan's largest privately owned conglomerates, Freedom Holdings, is turning to Hong Kong's capital market to finance a multimillion-dollar infrastructure project for its telecoms unit, underscoring the city's growing status as a fundraising hub for the Belt and Road Initiative (BRI).

Unlocking Kazakhstan's Digital Future through Hong Kong's Financial Prowess

Diversifying Funding Sources for Ambitious Infrastructure Plans

Freedom Holdings, the top Kazakh retail brokerage and investment bank, has engaged China International Capital Corp. (CICC) to help it sell so-called dim sum bonds, or financial instruments denominated in offshore renminbi. This move highlights the company's strategic approach to tapping into Hong Kong's vibrant capital market to finance its ambitious infrastructure projects. The Almaty-based company may also consider an initial public offering (IPO) in the future as it seeks to diversify its funding sources and accelerate the development of its telecoms unit, Freedom Telecom.

Hong Kong's Regulatory Prowess and Capital Market Expertise

According to the company's strategic adviser, Kairat Kelimbetov, Hong Kong's financial services industry and its prudent regulation make it an attractive destination for Freedom Holdings' fundraising efforts. "Hong Kong is always the benchmark in terms of financial services, [with] prudent regulation," Kelimbetov said in an interview with the Post, emphasizing the city's growing role in connecting global capital markets, particularly in the context of the BRI.

Transforming Kazakhstan's Digital Landscape

Freedom Telecom, the telecoms unit of Freedom Holdings, plans to invest 107 billion tenge (US$236 million) over the next three years to undertake two major projects in Kazakhstan. The first is a "hyper highway" project worth 17 billion tenge, which will establish a high-speed data transmission network spanning 3,100 kilometers from the country's west to the east. The second project is a 90-billion tenge Tier III data center, which will bolster Kazakhstan's digital infrastructure and support the country's growing demand for data storage and processing capabilities.

Leveraging Hong Kong's Expertise for Global Expansion

By tapping into Hong Kong's capital market, Freedom Holdings aims to leverage the city's financial expertise and international connections to fuel the growth of its telecoms unit and drive the transformation of Kazakhstan's digital landscape. The company's strategic adviser, Kairat Kelimbetov, emphasized the importance of Hong Kong's role in connecting global capital markets, particularly in the context of the BRI, which aligns with Freedom Holdings' ambitions to expand its reach and impact beyond Kazakhstan's borders.