Telegram secured $1.7 billion in funding through a bond issue
Date: 2025-05-30 Author: Gabriel Deangelo Categories: BUSINESS
The Telegram messenger has successfully completed a deal to raise $1.7 billion by placing five-year convertible bonds with a yield of 9%. Initially, the company planned to limit itself to $1.5 billion, but investor interest was higher than expected.
According to Bloomberg, the offer was opened on May 28, 2025, and closed on the same day. The final settlement for the deal is scheduled for June 5. Investors who invested in the new securities were given the opportunity to exchange them for Telegram shares in the future if the company goes public. The conversion condition provides for the redemption of bonds at a price of 80% of their par value.
Of the funds received, $955 million will be used to buy back convertible bonds issued back in 2021, which expire in March 2026. Telegram plans to invest the remaining $745 million in developing its services and expanding the platform.
This is not the company's first experience working with debt instruments: four years ago, it placed similar bonds for a five-year term, but then the yield was 7%. The new issue made it possible to partially refinance old obligations on more favorable terms and simultaneously attract additional funds.
The reaction of the cryptocurrency market deserves special attention. The Toncoin (TON) rate, associated with Telegram, reacted to the news with restraint. Despite the initial excitement after the announcement of the deal, the daily growth was only 1%, and the weekly dynamics show an increase of 8.7%. This indicates a stable interest in the token, despite the less sharp reaction at the stage of closing the deal.
Earlier, in October 2023, rumors appeared about a possible Telegram IPO. However, in April 2024, Pavel Durov said that he was not considering placing shares in the near future. However, the inclusion of the option to convert bonds into shares may indicate that such a possibility remains on the agenda in the future.
