Telegram Taps Markets for $1.7 Billion via Convertible Bonds, According to Bloomberg

Telegram Locks in $1.7B Through Convertible Bonds to Tackle Debt and Accelerate Growth

Telegram has raised $1.7 billion via a five-year convertible bond sale, a move aimed at refinancing its existing obligations and securing funds for future expansion, Bloomberg reports.

The messaging platform, which recently surpassed 1 billion users, plans to allocate $955 million of the raise to buy back bonds set to mature in 2026. The remaining $745 million will be used to strengthen Telegram’s balance sheet and support strategic growth.

The newly issued bonds include a conversion feature, allowing investors to exchange their holdings for equity if Telegram goes public before maturity. In such a case, the bonds can be redeemed at 80% of the IPO price, offering early exposure to a potential listing.

The deal closed on May 28, with settlement expected by June 5. Interest in the round was strong, drawing participation from institutional giants like BlackRock and Mubadala, as well as new players such as Citadel, according to CoinDesk.

The bonds carry a 9% coupon—two percentage points higher than Telegram’s $2.35 billion bond issued in 2021—reflecting current market conditions.

Telegram brought in over $1 billion in revenue last year and holds more than $500 million in cash reserves, excluding cryptocurrency assets, Bloomberg adds.