Archive · 2 Jun 2025
Telegram Raises $1.7 Billion via Convertible Bonds to Fund Debt Swap
Telegram, a messaging app with over a billion users, has secured $1.7 billion by selling new bonds.
The company plans to use part of this money to pay off some existing debt that's due in 2026.
Investors in the new bonds could potentially get a return based on Telegram's IPO price if the company goes public.
Telegram has also drawn criticism from authorities over content shared on its platform.
Telegram reached over $1 billion in revenue last year and has more than $500 million in cash.
Telegram raised $1.7 billion through convertible bonds.
The funds will be used to retire existing debt and potentially fund an initial public offering.
Investors can redeem the bonds at 80% of an IPO price, if Telegram goes public.
The new bonds have a 9% coupon rate.
Telegram's revenue surpassed $1 billion in 2024.
- Who
- Telegram, a messaging platform.
- What
- Telegram raised $1.7 billion from convertible bonds to retire existing debt and potentially go public.
- When
- The exchange tender closed on May 28, with settlement expected on June 5.
- Where
- N/A
- Why
- To fund debt obligations, extend debt maturity, and support expansion.
Telegram’s Growth
Telegram’s Challenges
Regulatory Scrutiny vs. Growth
Telegram’s Growth
Telegram faces scrutiny from various authorities regarding content shared on its platform and its responsiveness to takedown requests.
Telegram’s Challenges
Telegram has rapidly expanded and surpassed $1 billion in revenue in 2024, demonstrating robust growth and attracting major institutional investors.
- Debt Due Date
- 2026
- Coupon Rate
- 9%
- Convertible Bond Amount
- $1.7 billion
- Debt Tendered Amount
- $955 million
- Cash Reserves (excluding crypto)
- $500 million+
- Active Users
- 1 billion+
- Revenue above $1 billion
- 2024