Telegram Fully Repays $1 Billion in Convertible Bonds Issued in 2021

Telegram settles five-year bond obligations

Telegram has fully repaid the convertible bonds it issued in March 2021, according to founder Pavel Durov. The company had placed five-year dollar-denominated convertible bonds carrying a 7% annual coupon rate, raising a total of $1 billion.

The bond terms gave investors the option to convert their holdings into Telegram shares at a 10% discount to the nominal price, contingent on the company holding an IPO. Media reports at the time suggested Telegram was targeting a public listing by the end of 2023, though plans were later reportedly pushed back by 18 to 24 months.

In May 2021, Telegram conducted an additional placement of $750 million in bonds on identical terms.

Why this matters

Repaying $1 billion in debt signals Telegram's financial health and its ability to service major obligations without relying on an IPO for liquidity. Durov stated that the monetization strategy adopted five years ago enabled the messenger to become profitable as early as 2024. He added that a new bond issuance last year was oversubscribed, indicating strong investor confidence in the platform's trajectory.

Telegram has tapped debt markets on multiple occasions. Durov personally acquired a quarter of one tranche worth $270 million.

Durov's ongoing legal battles

The company's financial milestones come against a backdrop of legal challenges for its founder. In August 2024, French authorities detained Durov. Among the charges were providing cryptographic services for privacy functions without proper declaration, as well as offering cryptographic tools not exclusively intended for authentication or message integrity verification. He was also accused of refusing to provide information to competent authorities.

Durov was placed under judicial supervision with a bail of €5 million. Initial substantive interrogations took place four months after his detention, but the case has not yet been brought to trial.

Following the arrest, Durov announced enhanced moderation measures on the platform. Telegram began responding more promptly to legal requests from European authorities and published statistics on data disclosure requests from various countries.

Separately, Russian authorities are investigating Durov in a criminal case related to alleged facilitation of terrorist activities.

What lies ahead

The successful repayment of Telegram's first major bond offering, combined with the company reaching profitability, strengthens its position with potential investors. The question of a possible IPO remains unanswered, though strong demand for the company's recent debt offerings suggests sustained market appetite for exposure to the messaging platform.