Messenger Telegram has raised $1.7 billion through a five-year convertible bond issue. About this informs Bloomberg.
Information about the company’s plans to raise financing appeared on May 28, 2025. Then it was about the sum of 1.5 billion dollars. The exchange tender was opened and completed on May 28 with a settlement date of June 5. As part of this placement, the company behind Telegram issued convertible bonds with a five-year maturity and a yield of 9%.
About $955 million of the raised funds will be used to repurchase a previous series of debt securities maturing in 2026. The remaining $745 million will go towards the development and scaling of the platform.
Investors will have the right to convert bonds into shares if Telegram goes public through an IPO. Such securities will be redeemed at a rate of 80% of their face value. The reaction of cryptocurrency Toncoin (TON) to the news was more subdued than after the initial fundraising announcement. However, the asset showed growth: by 1% per day and by 8.7% per week.
As a reminder, in 2021, Telegram already issued similar five-year convertible bonds, but with a lower interest rate of 7%. It is planned to spend most of the newly raised funds on their repayment.
