Telegram Raises $1.7 Billion Through Convertible Bonds to Manage Debt and Support Expansion
Telegram has successfully secured $1.7 billion in funding by issuing five-year convertible bonds, as reported by Bloomberg. The capital will primarily be used to refinance existing debt and provide additional resources for the company’s growth ambitions.
Out of the total proceeds, $955 million is earmarked for repurchasing bonds due to mature in 2026, easing the company’s near-term debt obligations. The remaining $745 million will be deployed to enhance Telegram’s operations and invest in future opportunities.
These convertible bonds offer investors the option to convert their holdings into equity if Telegram goes public before maturity, with a redemption value set at 80% of the IPO price.
The bond tender offer closed on May 28, with settlement expected by June 5. The transaction attracted strong demand from established investors such as BlackRock and Mubadala, alongside new entrants including Citadel, according to CoinDesk.
The notes carry a 9% coupon, a premium over the 7% coupon on Telegram’s previous $2.35 billion bond issued in 2021, reflecting prevailing market conditions.
Telegram surpassed $1 billion in revenue last year and maintains over $500 million in cash reserves, excluding cryptocurrency holdings, according to Bloomberg.
