Emre Yumlu 
The rapidly growing messaging platform Telegram is preparing to restructure its existing debt through a $1.7 billion convertible bond issuance. With the funds raised, the company will repay approximately $955 million in debt maturing in 2026. In addition, the transaction brought in $745 million in new capital for the company.
Terms of the New Bonds Are Clear
The five-year bonds issued by Telegram offer investors a significant advantage in case of a future IPO. Before the company goes public, investors will be able to redeem their bonds at 80% of the IPO price. The bond swap offer was completed on May 28, and settlement is expected on June 5.
Market Entry with High-Yield Bonds
The new bonds were priced with an annual coupon rate of 9%. This rate is 200 basis points higher than the bonds issued in 2021, which raised $2.35 billion. The funds from that round played a significant role in Telegram’s global expansion strategy.
Telegram Strengthens Its Financial Performance
As of 2024, the company’s annual revenue exceeded $1 billion. Telegram also reported having more than $500 million in cash reserves. This figure reflects the company’s direct financial strength, excluding its digital assets (cryptocurrencies).
Institutional Investor Support for Telegram Continues
Investor interest in the company remains strong, just as it was in the past. Abu Dhabi-based Mubadala Investment Company, which participated in the 2021 bond issue, also supported Telegram in this round. This once again demonstrates Telegram’s credibility with institutional investors.
Growth Continues Despite Regulatory Pressure
With more than 1 billion active users, Telegram is under the scrutiny of regulatory bodies from the European Union to Iran. Its lack of response to content removal requests has occasionally led to criticism. However, this has not hindered Telegram’s growth or ability to attract investment.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.