Telegram Secures $1.7B in Bond Deal as Billion-User Platform Eyes IPO

The five-year bonds, offering a 9% annual coupon, were issued to replace Telegram's 2021 bonds maturing in March 2026. Notably, the new bonds include a provision allowing investors to convert their holdings into equity at a 20% discount if Telegram proceeds with an initial public offering before maturity.

Prominent investors participating in this round include existing bondholders like BlackRock and Abu Dhabi's Mubadala Investment Company, as well as new entrants such as hedge fund Citadel . This continued investor interest underscores confidence in Telegram's growth trajectory and financial health, despite the ongoing legal issues surrounding its CEO.

Of the $1.7 billion raised, approximately $955 million will be used to repurchase existing bonds due in 2026, while the remaining $745 million is allocated for operational growth and expansion . The bond offering closed on May 28, with settlement expected by June 5.

Pavel Durov is currently under formal investigation in France, with authorities examining Telegram’s handling of illegal content shared on its platform. Initially barred from leaving France, Durov was granted temporary permission to travel to Dubai in March 2025, where he currently resides. Despite the legal proceedings, Durov maintains that Telegram has always exceeded legal obligations in terms of moderation and cooperation with law enforcement.

Telegram's financial metrics have shown significant improvement. In 2024, the company reported a profit of approximately $540 million on revenues of $1.4 billion, a substantial turnaround from a $173 million loss on $342 million in revenue in 2023. For 2025, projections indicate a profit exceeding $700 million on revenues of $2 billion . Key contributors to this growth include in-app purchases, advertising, and a notable $300 million distribution deal with Elon Musk's AI company, xAI.

Telegram's user base has reached 1 billion monthly active users, with paid subscriptions doubling to over 15 million in the past year . The company has also introduced "Telegram Stars," facilitating in-app purchases of digital goods and services, further diversifying its revenue streams.

Despite the legal uncertainties surrounding its CEO, Telegram's successful bond issuance and strong financial performance position the company favorably for continued growth. Investor confidence remains high, reflecting optimism about Telegram's ability to navigate current challenges and capitalize on its expanding user base and monetization strategies.

As the situation evolves, stakeholders will be closely monitoring the legal proceedings involving Durov and their potential impact on Telegram's operations and strategic initiatives.