Telegram Raises $1.7 Billion Via Convertible Bonds to Refinance Debt and Fuel Growth

Telegram has secured $1.7 billion through a five-year convertible bond issuance, aiming to refinance existing liabilities and extend repayment deadlines. The messaging platform, now boasting over 1 billion users, will allocate $955 million to repurchase bonds maturing in 2026, while the remaining $745 million provides fresh capital for operational expansion or strategic investments.

Investors in the new bonds gain conversion rights to equity if Telegram goes public before maturity, with redemption terms set at 80% of the IPO price. The tender offer closed on May 28, with settlement expected by June 5. Notable participants include BlackRock, Mubadala, and Citadel, signaling strong institutional confidence.

The notes carry a 9% coupon, a two-percentage-point premium over Telegram’s 2021 bond issuance. With $1 billion in annual revenue and $500 million in cash reserves, Telegram demonstrates robust financial health as it positions for future growth.