Telegram has completed the redemption of its convertible bonds issued in 2021, totaling $1 billion, as the company plans for future profitability.
Telegram has successfully redeemed its convertible bonds issued in March 2021, according to the company's founder, Pavel Durov.
The initial issuance was for $1 billion in five-year bonds, featuring a 7% annual interest rate. These bonds included a provision for investors to convert them into shares at a 10% discount to the nominal price if the company went public.
While Telegram had plans to launch an IPO by the end of 2023, recent reports indicate that this timeline has been pushed back by 18 to 24 months.
In addition to the initial bonds, Telegram issued another $750 million in bonds under the same conditions in May 2021.
Durov expressed confidence in the messaging platform's monetization strategy, predicting profitability as soon as 2024. He noted, “As a result, our new bond issue last year was oversubscribed.”
Telegram has a history of debt placements, with Durov personally purchasing a portion of a previous tranche worth $270 million.
In August 2024, Durov was detained in France, facing allegations related to privacy functions and cryptographic services, including failing to provide necessary information to authorities. He was placed under judicial supervision with a €5 million bail.
Following his detention, Durov announced stricter moderation policies on the platform, which began to comply promptly with legal requests from European authorities. Furthermore, statistics regarding legal requests for user data from various countries were disclosed.
In Russia, Durov's actions are currently under investigation in connection with a criminal case related to alleged support for terrorist activities.
