BlackRock, Mubadala, and Citadel back Telegram bond issuance.

Telegram’s bondholders get a 20% discount on potential IPO shares.

Telegram’s Premium subscribers double to 15 million in just one year.

Telegram raised $1.5 billion in a bond issuance which attracted big investors such as BlackRock, Mubadala and Citadel. The issuance which comprises five-year bonds at 9% yield has attracted investors who are interested in Telegram’s future IPO. The company intends to use the funds to pay off some of the debt from a 2021 bond issuance which is due in March 2026.

Telegram Bond Issuance Attracts BlackRock and Other Investors

BlackRock, Mubadala and Citadel, all investors in Telegram, took part in the latest bond sale. If Telegram decides to go public, its previous bondholders are allowed to convert their debt into equity at a 20% discount. Pavel Durov, Telegram’s founder, has also teased a major announcement.

Telegram’s recent $1.5 billion bond sale comes after initial discussions with investors about a $2 billion raise. The Telegram bond issuance includes 9% interest which makes it attractive to institutional investors. As part of the deal, bondholders will receive a 20% discount on shares when the company goes public. An immediate IPO is not expected because of legal issues and the unpredictable state of the market.

Telegram Bond Issuance to Reduce Debt

According to Trading Strategy’s co-founder, Mikko Ohtamaa, the bond sale is the only way to invest in Telegram equity right now. Ohtamaa pointed out that investors in the deal were credible, which strengthens Telegram’s position in the market. Although Durov had issues in France, Telegram has over 15 million Premium subscribers shows it has a promising future.

The $1.5 billion raised will help Telegram repurchase some of its 2021-issued bonds, which are due in 2026. The company has used cash reserves to redeem about $400 million of the 2021 bonds. Telegram intends to cut down its debt and get ready for future development which could lead to a public offering.

Telegram Adds Musk’s xAI Grok 

Telegram launched its bond offering as its paid subscriber base doubled in only 12 months. Telegram recently revealed a partnership with Elon Musk’s xAI to add the AI chatbot Grok to its platform. This is part of Telegram’s product expansion to become stronger in the market before going public.

Even with legal problems in France, Pavel Durov’s visit to Dubai has raised more questions about Telegram’s plans. Durov, who has been restricted in France, has confirmed he will travel to Dubai in early June. The visit comes amid an imminent major announcement, but the details have not been revealed.

Telegram bond issuance offers institutional investors an early chance to invest in the company. Telegram is well-placed to succeed in the long term because of its many users and increased financial support. 

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Filed under: Bitcoin - @ May 29, 2025 1:00 am