Telegram Raises $1.7B via Convertible Bonds to Refinance Debt and Fuel Growth

Telegram has raised $1.7 billion by issuing five-year convertible bonds, a move aimed at refinancing existing debt and extending repayment timelines. According to Bloomberg, the popular messaging platform will allocate $955 million of the proceeds to repurchase bonds due in 2026, while the remaining $745 million will be used to support operations and fund growth initiatives.

The convertible bond offering, which closed on May 28 and is expected to settle by June 5, attracted strong investor interest. Participants included returning backers such as BlackRock and Abu Dhabi’s Mubadala, as well as new entrants like hedge fund giant Citadel. The new bonds carry a 9% annual coupon, notably higher than the 7% coupon on Telegram's earlier $2.35 billion bond issuance in 2021.

A key feature of the bonds is the option for investors to convert their holdings into equity if Telegram goes public before the bonds mature. In such a case, bondholders would receive shares at a 20% discount to the IPO price, providing significant upside potential.

Telegram, which surpassed 1 billion users and generated over $1 billion in revenue last year, reportedly holds over $500 million in cash reserves—excluding cryptocurrency assets. This latest funding round highlights investor confidence in the company’s long-term vision and monetization strategy, especially as it continues to expand globally and explore future IPO opportunities.

The announcement follows recent news that Telegram CEO Pavel Durov denied any finalized partnership with xAI, Elon Musk’s AI venture, easing speculative pressure around its blockchain ecosystem, TON.