WSJ: Telegram to Raise $1.5 Billion Through Bond Sale, Expected Participation from BlackRock and Citadel

BlockBeats News, May 28th, according to The Wall Street Journal, Telegram is set to raise $1.5 billion through a bond issuance, with support from both new and existing investors.

Sources familiar with the matter stated that Telegram's five-year bond issuance has a pricing yield of 9%, and the proceeds will be used to repurchase the outstanding bonds issued in 2021, maturing in March next year. The company had previously repurchased approximately $400 million in bonds using cash. Investors include existing bondholders such as the U.S. asset management company BlackRock and the Abu Dhabi state investment company Mubadala. New investors are expected to include hedge fund companies like Citadel.

Similar to Telegram's previous bond issuance, if the company decides to go public, bondholders of the new bonds can choose to convert their debt into equity at a discounted price. However, due to legal uncertainties surrounding founder Pavel Durov and market volatility, the likelihood of an IPO in the short term is low.

Sources familiar with the matter revealed to investors that Telegram expects the company to generate $1.4 billion in revenue in 2024, with a profit of about $540 million. However, The Wall Street Journal saw financial statements showing a revenue of $342 million and a loss of $173 million in 2023. In 2025, the company anticipates revenue to reach $2 billion, with profits exceeding $700 million.