Freedom Holding Corp.FRHC

Freedom Holding Corp. Debt Disclosure

10-KFiled Jun 1, 20262 min read
DEBT SECURITIES ISSUED
As of March 31, 2026 and 2025, outstanding debt securities of the Group included the following:
Debt securities issued by:
Principal Amount as of March 31, 2026
Principal Amount as of March 31, 2025
Interest rateIssue dateMaturity dateDenominated Currency
Freedom SPC bonds due 2028$269,722 $— 
9.5%
October, 2025October, 2028
USD
Freedom SPC bonds due 2028200,170 200,305 
1-2 years: 12%
3-5years: 10.39%
December, 2023December, 2028
USD
Freedom SPC bonds due 2026199,344 201,311 
10.5%
September, 2024September, 2026
USD
Freedom SPC bonds due 2027198,492 — 
10.0%
May, 2025May, 2027
USD
Freedom SPC bonds due 2029186,502 — 
9.0%
March, 2026March, 2029
USD
Freedom SPC bonds due 202798,982 — 
8.0%
May, 2025May, 2027
EUR
Freedom SPC bonds due 202665,057 64,801 
 5.5%
October, 2021October, 2026
USD
Freedom SPC bonds due 202730,676 — 
9.0%
May, 2025May, 2027
CNY
Accrued interest12,175 3,134 
Total debt securities issued$1,261,120 $469,551 
The Freedom SPC bonds are denominated in U.S. dollars, euros, Chinese yuans and were issued under Astana International Financial Centre ("AIFC") law and trade on the AIX. FRHC is a guarantor of the Freedom SPC bonds.
The Freedom SPC bonds due 2026 bear interest at an annual rate of 5.5% and 10.5%. The maturity dates for those bonds are in October and September 2026. Interest payments are due to be made semi-annually in April and October, and on a quarterly basis.
For the first two years of Freedom SPC bonds due 2028, the annual interest rate is 12.0% and for subsequent (third, fourth and fifth) years the interest rate is stated to be fixed and set as the sum of Effective Federal Funds Rate (EFFR) as of December 10, 2025 and a margin of 6.5%. The annual interest rate for subsequent (third, fourth and fifth) years has been determined at 10.39%. Interest is paid on a monthly basis. The bondholders have a right of early redemption after two years at nominal value plus accrued interest. After two years, following the issue date, the issuer has the option to redeem the bonds in full or in part at nominal value plus accrued interest.
The Freedom SPC bonds due 2027 bear interest at an annual rate of 8%, 9% and 10% and maturity date in May 2027. Interest is paid on a quarterly basis. The Freedom SPC bonds due 2028 bear interest at an annual rate of 9.5% and maturity date in October 2028. Interest is paid on a quarterly basis. The Freedom SPC bonds due 2029 bear interest at an annual rate of 9.0% and maturity date in March 2029. Interest is paid on a quarterly basis.
Debt securities issued are initially recognized at the fair value of the consideration received, less directly attributable transaction costs.
The Group has no financial covenants to comply with under the terms of its debt securities.

Historical Timeline

Fiscal YearFiled
2026Jun 1, 2026Showing above
2025Jun 13, 2025
2024Jun 14, 2024
2023Aug 4, 2023
2022May 31, 2022
2021Jun 15, 2021
2020Jul 14, 2020
2019Jun 14, 2019
2018Jun 29, 2018

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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