Telegram raises $1.5B via bond sale with a 9% yield, backed by BlackRock, as CEO Pavel Durov hints at major news for the messaging platform.
Telegram, a widely used messaging application, has raised $1.5 billion in funding through a bond issue with investors, including BlackRock and Mubadala.
The timing of this financing is intriguing, as it coincides with the announcement by founder and CEO Pavel Durov that he will be in his hometown of Dubai, thereby ending the months-long French lockdown.
Durov also hinted that there would be “good news” shortly.
Telegram Provides Appealing Yield On Bond Issues
On Wednesday, Telegram is expected to issue a debenture that will generate a minimum of $1.5 billion.
Sources familiar with the matter have indicated that new and existing investors will participate in the financing, per the WSJ report.
Asset manager BlackRock and Abu Dhabi’s state-owned investment company, Mubadala, are among the investors.
The five-year bonds are anticipated to be priced at a 9% yield.
The report also specifies that the proceeds from the issuance will be used to repurchase the remaining debt from Telegram’s 2021 bond issuance, which is scheduled to mature in March 2024.
The company has redeemed approximately $400 million of the previous bonds using cash reserves.
Reason Why BlackRock, Others Increased Their Stakes?
Despite the challenges Durov is encountering with French legal authorities, financial institutions such as BlackRock remain optimistic about the company’s future as it continues to experience robust development.
Durov provided an update on the company’s growth figures earlier today, stating:
“Telegram Premium now has over 15 million paid subscribers. The number has doubled in just one year. Thank you for going Premium!”
Investors continue to anticipate a promising future for the organization due to its devoted clientele of premium users.
In addition to the yield, the bond issuance is appealing because, as with previous bond issues, investors of the new bond will be able to convert their debt into equities at a discounted rate when the company decides to go public, according to the Wall Street Journal.
Nevertheless, it is unlikely that an initial public offering (IPO) will occur in the immediate future due to the current market volatility and the ongoing legal challenges Durov faces.
Durov announced the launch of the platform’s new in-app Gift Marketplace through his personal Telegram channel earlier this month, marking a significant NFT initiative.
Pavel Durov Discloses Significant Information
Despite Pavel Durov’s release on parole, he is still prohibited from leaving France without official authorization as the investigation continues.
Durov requested a special exemption to travel to the United States for investor negotiations on May 12.
However, French prosecutors denied the request, stating that the purpose was “neither compelling nor justified.”
Durov was previously granted permission by French authorities to travel to Dubai, where he currently resides.
Nevertheless, Durov announced in his most recent tweet that he would travel to Dubai next week.
