Telegram to raise $1.5 billion through bond issuance supported by BlackRock and Citadel: WSJ | CoinDesk JAPAN

! Telegram to raise $1.5 billion in bond issuance backed by BlackRock and Citadel: WSJ

• Telegram will raise at least $1.5 billion through a new bond issuance to investors such as BlackRock, Mubadala, and Citadel.
• The raised funds will be used for the repurchase of bonds issued by Telegram in 2021.
• The company recorded a profit of 540 million Dollar against a revenue of 1.4 billion Dollar in 2024.

Telegram is advancing its fundraising through a 5-year bond with a yield of 9%, attracting interest not only from existing investors such as the world's largest asset management company BlackRock and Abu Dhabi's sovereign wealth fund Mubadala but also from new investors like the hedge fund Citadel. This was reported by The Wall Street Journal citing sources related to the contract.

The funds raised are planned to be used for the buyback of bonds issued by Telegram in 2021, which will mature in March next year. The new bonds can be converted into shares at a discounted price if Telegram goes public.

Telegram initially developed the Layer 1 network TON, but later commercialized it independently. In April, the tokenized company Libre announced plans to tokenize Telegram's debt worth 500 million Dollars (approximately 72.5 billion yen) on the TON network as the Telegram Bond Fund (TBF).

According to Pavel Durov, the founder of Telegram, the number of monthly active users on Telegram has surpassed 1 billion, with over 15 million paid subscribers, doubling in just one year.

According to the Wall Street Journal, Telegram is expected to overcome its financial crisis in 2024, reporting a revenue of 1.4 billion Dollars (approximately 203 billion yen) and a profit of 540 million Dollars (approximately 78.3 billion yen). This marks a recovery from a loss of 173 million Dollars (approximately 25.1 billion yen) in 2023. It is anticipated that profits will exceed 700 million Dollars (approximately 101.5 billion yen) in 2025.

Telegram has been increasing its revenue through the expansion of its advertising business, the introduction of features such as in-app digital gifts, and providing a platform for developers to create apps and bots.

Telegram and Citadel did not respond immediately to the comment request.

| Translation and Editing: Rina Hayashi | Image: Christian Wiediger/Unsplash ｜Original text: Telegram to Raise $1.5B Through Bond Sale Backed by BlackRock and Citadel: WSJ