Telegram Raises $1.7 Billion Through Convertible Bonds to Refinance Debt and Fuel Growth
Telegram has raised $1.7 billion through the sale of five-year convertible bonds, with plans to use the majority of the funds to refinance existing debt and the rest to support growth initiatives, according to Bloomberg.
Of the total proceeds, $955 million will go toward repurchasing bonds set to mature in 2026. The remaining $745 million will provide Telegram with new capital for operations and expansion.
The fundraising comes as Telegram surpasses 1 billion users and continues its push toward financial sustainability. Investors in the newly issued notes will have the option to convert their bonds into equity if Telegram launches an initial public offering before the bonds mature. In such a case, the bonds will be redeemable at 80% of the IPO price.
The tender offer closed on May 28, with settlement expected on June 5. The round attracted strong interest, including from existing backers like BlackRock and Abu Dhabi’s Mubadala, as well as new participants such as hedge fund Citadel, CoinDesk previously reported.
The new bonds carry a 9% coupon, a notable increase from the 7% attached to Telegram’s previous $2.35 billion bond issuance in 2021.
Telegram, which exceeded $1 billion in revenue last year, currently holds over $500 million in cash reserves—excluding any crypto assets—according to Bloomberg.
