Encrypted messaging platform Telegram is planning to raise approximately $1.5 billion through a bond offering this week, aiming to address outstanding debt from 2021 bonds set to mature next year. This deal will attract significant investment interest from financial institutions like BlackRock, Citadel, and Mubadala, among others. The five-year bond carries an alluring 9% yield, promising attractive returns for investors. The move comes as Telegram seeks to navigate legal challenges facing its founder and CEO, Pavel Durov, currently under investigation in France for alleged inaction on illegal content like child pornography on the platform.
A recent Wall Street Journal exclusive revealed that Telegram will use proceeds from this bond sale to repurchase existing debt, ensuring financial stability. The issuance is also seen as a key step towards potentially listing on an Initial Public Offering (IPO). However, given the volatile market conditions and unresolved legal issues surrounding Durov, this IPO seems unlikely in the near future.
Despite these challenges, investors remain optimistic about Telegram’s long-term success, fueled by consistent user growth. In 2024, the company reported a notable $540 million profit from $1.4 billion in sales, demonstrating considerable progress compared to last year’s losses. For 2025, Telegram aims to generate over $700 million in profits with $2 billion in revenue.
Durov’s legal troubles are not stopping his business expansion. In a recent post on X, he announced plans for a trip to Dubai this June, hinting at positive developments ahead. He also reiterated allegations of French intelligence attempting to influence the Romanian presidential election through targeting conservative Telegram channels.
This bond deal highlights Telegram’s growing financial strength and its potential for long-term success. The company is navigating challenging circumstances but remains confident in its ability to attract investors for sustained growth.