Company: FRHC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000924805-25-000041
Chunk: 48

Company: Freedom Holding Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 2
Chunk 48
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 30, 2024. This change is attributed to the growth in the 

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Freedom Bank KZ's loan portfolio over the six months ended September 30, 2025, driven by new banking products, partnership agreements, and effective advertising campaigns. 

Net Cash Flows From Financing Activities

Net cash flows from financing activities for the six months ended September 30, 2025 were $219.7 million compared to $370.3 million net cash flows from financing activities during the six months ended September 30, 2024. Cash flows from financing activities during the six months ended September 30, 2025 consisted principally of net, repayment of securities repurchase agreement obligations in the amount of $519.9 million, bank customer deposits received in the amount of $413.7 million, proceeds from the issuance, net of repurchase, of debt securities in the amount of 270.2 million, and mortgage loans sold under the terms of "7-20-25" state mortgage program to JSC Kazakhstan Sustainability Fund (which is the program operator), net of repurchase, in the amount of $5.4 million. During the six months ended September 30, 2025, cash flows from financing activities decreased by $150.6 million compared to the six months ended September 30, 2024. This decrease was primarily attributable to a $550.2 million change in net repayment of securities repurchase agreement obligations.

CAPITAL EXPENDITURES 

In alignment with our digital fintech ecosystem strategy, we are expanding our business into the telecommunications market in Kazakhstan through our Freedom Telecom subsidiary. Our expansion will require significant capital expenditures, the specific amount of which is currently uncertain. Total capital expenditures for the development of this business area are currently expected to be required for, among other things, construction of network infrastructure, including a backbone network, obtaining licenses or other rights to provide services where required and acquisitions of smaller companies in the sector. Our plans and budget for Freedom Telecom continue to be regularly reassessed and are subject to revisions, which may be material. We currently plan to finance our capital expenditures for this business area with a combination of own funds and borrowings, including vendor financing, including the proceeds of a $200 million U.S. dollar domestic bond placement on the AIX that we completed on December 19, 2023. In addition, on September 16, 2024, Freedom SPC authorized and, during the three months ended December 31, 2024, placed a