TLDR;
- Telegram plans to raise $1.5 billion by issuing five-year bonds with a 9% annual yield.
- The funds will be used to buy back existing debt from a 2021 bond offering.
- Investors include BlackRock, Mubadala, and potentially Citadel, with an option to convert debt into equity.
- The move comes as Telegram eyes profitability, with a potential IPO valued at $30 billion.
Telegram, the fast-growing messaging platform founded by Pavel Durov, is gearing up for a major financial move. The company will issue $1.5 billion in bonds with a five-year maturity, according to individuals familiar with the matter.
Firm Eyes Expansion Amid Profit Surge
The offering is reportedly backed by existing investors including global asset management powerhouse BlackRock and Abu Dhabi’s sovereign wealth fund Mubadala. Hedge fund Citadel is also expected to join.
These new bonds, yielding 9% annually, mark a strategic shift as Telegram positions itself for long-term financial health and potential public listing. Proceeds from the bond sale will primarily go toward repurchasing outstanding debt from its 2021 bond issuance, due to mature in March 2026. Notably, Telegram has already bought back $400 million of that earlier debt using its own cash reserves.
Public Listing Still in Sight
Although Telegram has not confirmed the exact timeline for an initial public offering (IPO), Durov has not ruled it out. Speaking to the Financial Times earlier, he mentioned that the company had evaluated various IPO scenarios and attracted interest from major tech investment funds.
Crucially, the new bond package includes a convertible clause, offering investors the option to convert their bonds into Telegram equity at a discount, should the company eventually go public. Sources familiar with the plans suggest that Telegram could be valued as high as $30 billion during an IPO, a figure cited by Durov in recent interviews.
This financial maneuver also seems to reflect the market’s growing confidence in Telegram’s trajectory, especially following the strong performance of The Open Network (TON), the blockchain project tied to the platform. Following reports of a potential IPO, TON’s token price surged 10%, and its market cap has climbed above $10 billion.
Revenue Milestones and Monetization Push
Telegram’s improved financial position provides a solid foundation for its bond strategy. The platform recently hit a major revenue milestone, generating over $1 billion in 2024 and recording its first net profit, approximately $540 million, thanks to its ad platform and premium subscription model. With 15 million users subscribing to Telegram Premium and over 1 billion monthly active users overall, the app has firmly established itself as a leading social and communication platform.
Looking ahead, the company forecasts revenue of $2 billion in 2025 and profits exceeding $700 million. To sustain this momentum, Telegram is rolling out a suite of monetization features including payments for channel creators via TON, business accounts, enhanced social functions, and AI-powered content moderation.
Legal Troubles
However, Telegram’s expansion hasn’t been without controversy. In August 2024, founder Pavel Durov was briefly detained by French authorities on serious allegations, including complicity in illegal content distribution and refusal to comply with legal information requests. Although released on €5 million bail and later allowed to leave France, Durov’s case is still pending and not expected to be heard until 2026.
In response to the incident, Telegram has stepped up its moderation policies and compliance protocols. The platform now claims to be working more closely with European authorities and has pledged to respond more promptly to legal requests.
