Telegram Raises $1.7B via Convertible Bonds to Refinance Debt, Fund Expansion

Telegram has raised $1.7 billion through a five-year convertible bond issuance, using the capital to restructure existing debt and fuel future growth, Bloomberg reported.

The messaging giant, which recently surpassed 1 billion users, will allocate $955 million of the proceeds to repurchase outstanding bonds due in 2026. The remaining $745 million will be directed toward general corporate purposes, including scaling operations and strategic investments.

As part of the deal, investors have the option to convert their bonds into equity if Telegram goes public before the bonds mature. In that event, the bonds can be redeemed at a 20% discount to the IPO price.

The offering closed on May 28, with final settlement scheduled for June 5. The issuance drew participation from major institutional investors, including returning backers like BlackRock and Mubadala, as well as new investors such as hedge fund Citadel, according to CoinDesk.

The bonds offer a 9% coupon—up from the 7% attached to Telegram’s $2.35 billion bond sale in 2021—reflecting a higher cost of capital amid broader market conditions.

Telegram reported over $1 billion in revenue in 2024 and holds more than $500 million in non-crypto cash reserves, Bloomberg noted.