Telegram Raises $1.5 Billion in Bonds Despite CEO's Legal Challenges

Telegram, the encrypted messaging platform, has successfully raised $1.5 billion through a bond sale, despite the ongoing legal challenges faced by its CEO, Pavel Durov. This significant financial move underscores the confidence that investors have in the company's growth trajectory and profitability, even amidst the legal uncertainties surrounding its founder.

The bond sale, which was completed on Wednesday, involved a 5-year bond offering a 9% yield. The proceeds from this issuance are intended to repay the remaining debt from the bonds issued in 2021, which are due to mature in June 2025. Telegram had previously bought back approximately $400 million of these bonds using cash reserves. The new bond issue also provides investors with the option to convert their debt into shares at a discounted price if Telegram decides to go public in the future.

The bond sale attracted a mix of new and existing investors, including prominent names such as BlackRock, Mubadala, and Citadel. These investors have shown their support for Telegram despite the legal issues that Durov is currently facing in France. Durov has been charged with various crimes related to the messaging app and his refusal to cooperate with criminal probes. He is currently banned from leaving France without permission, and his investigation by French authorities is ongoing.

Despite these legal challenges, Telegram's success continues to rise. The platform recently announced that its premium subscription service, Telegram Premium, has reached 15 million paid subscribers, doubling its user base in just one year. This growth reflects the increasing trust that users have in Telegram, despite the controversies surrounding the app.

Telegram's financial performance has also been impressive. The company is projecting a profit of over $700 million on revenue of $2 billion for 2025, up from a profit of $540 million on revenue of $1.4 billion in 2024. These figures highlight the company's strong financial health and its ability to generate revenue even in the face of legal challenges.

Pavel Durov, the founder of Telegram, has been an advocate for free speech and has defended the platform's stance on allowing all voices to speak, regardless of their political views. He has also been involved in charitable events, recently donating 400,000 Euros to the Foundation for AIDS Research. Durov's commitment to free speech and his charitable efforts have further solidified his reputation as a visionary leader in the tech industry.

The bond sale's success, despite Durov's legal entanglements, indicates that investors are willing to overlook the risks associated with the CEO's legal issues. This confidence in Telegram's future prospects is a testament to the company's strong performance and its ability to attract and retain users, even in the face of adversity. As Telegram continues to grow and innovate, it remains to be seen how Durov's legal issues will evolve, but one thing is certain: the company's success shows no signs of slowing down.