Telegram is set to raise at least $1.5 billion through a new five-year bond issuance offering a 9% yield, attracting significant interest from major institutional investors including BlackRock, Abu Dhabi’s Mubadala sovereign wealth fund, and newcomer hedge fund Citadel, according to sources cited by the Wall Street Journal.
The capital raised will be used primarily to repurchase outstanding debt from Telegram’s 2021 bond issuance, which matures in March 2026. These newly issued bonds also carry an option for investors to convert their debt holdings into equity at a discounted rate if Telegram proceeds with an initial public offering.
Telegram, which originally developed the layer 1 blockchain network TON before spinning it off as an independent entity, continues to expand its user base and financial performance. CEO Pavel Durov reports over 1 billion monthly active users and 15 million paid subscribers, doubling the subscriber count in just one year. Financially, the company turned profitable in 2024 with a $540 million profit on $1.4 billion in revenue, a significant improvement from a $173 million loss in 2023. Telegram projects profits exceeding $700 million for 2025, driven by growth in advertising, in-app digital gifts, and a developer platform for bots and apps.
Despite ongoing legal challenges faced by CEO Durov in France, including travel restrictions amid an investigation, investor confidence remains strong. The participation of heavyweight institutional investors underscores faith in Telegram’s hybrid digital business model that bridges traditional finance and blockchain-based monetization.
This bond sale marks a strategic refinancing move for Telegram, enabling it to manage its debt profile while providing early equity exposure to investors ahead of a potential public listing.
Neither Telegram nor Citadel has publicly commented on the bond offering as of now.
