Telegram has raised $1 billion with a 5-year convertible dollar bond at 7% per annum to fund operations and repay existing creditors, according to Russian media outlet RBC. As of press time, the messaging service company owes creditors approximately $700 million.
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The minimum bond placement was reportedly set at $50 million. Bonds are placed until 2026, with the first coupon payment scheduled for September 2021. While on the over-the-counter market Telegram itself acted as the organizer of the bond placement, in Russia potential investors could buy bonds from VTB Capital or Aton.
As iHodl previously reported, Pavel Durov, the creator of Telegram, was conducting private negotiations with several investors to raise funds that would be converted into shares if the company goes public. Per the terms of the agreement with the US Securities and Exchange Commission (SEC), Telegram may keep 30% of the $1.7 billion it raised for the launch of the blockchain project called Telegram Open Network.
According to investors, part of the funds have already been returned, however, the messaging service still owes money to some European creditors, with whom Durov agreed to return the original amount with interest of one tenth. How much money remains to be paid remains unknown.
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