Telegram Group, owner of the instant messaging service Telegram, has plans to raise at least $1B through convertible bonds among a selected circle of investors from Russia, Europe, Asia and the Middle East, local news outlet Kommersant has reported citing sources.
The minimum amount to participate is $50M, however, according to one source, the threshold could be reduced to $10M.
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The organizer of the offering is Telegram, the agents are banks and brokers in Russia, Europe, Asia and the Middle East. US citizens will not be able to participate in the offering. Sources note Telegram reserves the right to choose investors.
The bonds will be issued for a period of five years, a coupon will be paid annually, in principle in the amount of 7-8% of the debt, a source said. If Telegram conducts an IPO within those five years, bondholders will be able to convert debt into equity at a 10% discount to the offer price.
Since its launch in 2013, Telegram has been funded by the personal money of Pavel Durov, its founder.