Telegram Raises $1.5B in Bond Sale Despite CEO’s Legal Challenges

Telegram is set to raise $1.5 billion in a bond sale today, despite ongoing legal issues involving its CEO, Pavel Durov, in France. According to The Wall Street Journal, the five-year bonds offer a 9% annual yield and have attracted major global investors. The proceeds will be used to refinance existing debt.

Notable participants include BlackRock and Mubadala, Abu Dhabi’s state-owned investment firm. Hedge fund Citadel is also expected to join as a new investor.

The bond terms include an option for investors to convert their holdings into equity at a discount, should Telegram go public. However, an IPO is unlikely in the near term due to Durov’s legal situation and ongoing market volatility.

The funds will primarily be used to repurchase debt from Telegram’s 2021 bond issuance, which matures in March 2025. Telegram has already used its cash reserves to buy back approximately $400 million of that debt.

Related: BlackRock-Backed Libre Brings $500M Telegram Bond Fund To TON: Price Surge Next?

Legal Troubles Surround CEO Pavel Durov

Telegram CEO Pavel Durov is facing preliminary criminal charges in France for allegedly refusing to cooperate with investigations into illegal activity on the platform. French prosecutors are examining claims of illicit content on Telegram, including child pornography.

Durov denies the allegations, asserting that Telegram has complied with all binding legal requests. He is out on bail but prohibited from leaving France during the investigation. French authorities recently denied a request to travel to the United States for investor meetings.

Durov holds dual citizenship in France and the United Arab Emirates, where Telegram is headquartered. The legal proceedings could take considerable time, as preliminary charges in France often lead to lengthy investigations led by magistrates.

Significant Financial Growth and User Expansion

Telegram has seen substantial financial growth in recent years. For 2024, the company saw a profit of approximately $540 million on $1.4 billion in revenue, a significant improvement from a $173 million loss on $342 million in revenue in 2023.

In 2025, Telegram projects more than $700 million in profit on $2 billion in revenue. Revenue growth is fueled by multiple streams, including advertising, in-app purchases of digital gifts called “stars,” and partnerships with third-party developers building apps and bots on the platform.

The platform’s user base continues to expand rapidly. As of March, Telegram had reached 1 billion monthly active users. Its paid subscriber base has doubled over the past year to over 15 million.

Related: Pavel Durov Calls TON Telegram “Backbone,” $400M VC Support Revealed

Earlier this month, Libre launched the Telegram Bond Fund (TBF) on The Open Network (TON), tokenizing $500 million of Telegram’s corporate debt. The fund allows accredited investors to gain blockchain-based exposure to Telegram’s $2.35 billion outstanding debt and use the tokens in decentralized finance (DeFi) applications, such as yield farming and borrowing.