Telegram Taps Bond Market Again with 9% Yield, Signaling Confidence in Profitability
Telegram, the privacy-focused messaging platform, is once again attracting attention from the financial world with a new bond offering. The company is issuing bonds with a 9% coupon rate, maturing in 2030, and offering investors the option to convert into shares at a discount should Telegram proceed with an initial public offering (IPO). This move comes on the heels of a successful $2.3 billion bond issuance in 2021 and, crucially, after Telegram achieved profitability in 2024, making its bonds an increasingly attractive investment.
A Look Back at Telegram’s 2021 Bond Offering
In 2021, Telegram raised $2.3 billion through bonds offering a 7% coupon and a five-year maturity. A key feature of these bonds was their convertibility, allowing investors to exchange them for shares at a discount if the company went public. Initially, a 15% discount was offered for IPOs occurring before March 2025, increasing to 20% for IPOs before March 2026. As of May 2025, the 15% discount window has closed, leaving only the 20% discount as an incentive. Despite market fluctuations, these bonds have largely maintained their value, trading close to face value—around 100%—demonstrating consistent investor confidence in Telegram’s future.
New Bonds: Higher Yields and Continued Conversion Rights
Telegram’s latest bond issuance builds upon the success of its 2021 offering, but with more appealing terms. The new bonds carry a 9% coupon rate—a significant increase from the previous 7%—and mature in 2030. Like their predecessors, they include the option to convert into shares at a 20% discount in the event of an IPO. Issued at approximately 100%, these bonds present a compelling yield, particularly for investors seeking higher returns in a low-interest-rate environment. While the bonds are not yet available for investment, they are expected to be released this week.
From Losses to Profitability: A Turning Point for Telegram
A pivotal moment for Telegram has been its recent achievement of profitability. In 2024, the company reported a profit of $540 million, a dramatic shift from previous years of financial losses. This turnaround is driven by two primary revenue streams: premium subscriptions and advertising.
Telegram launched its premium subscription service in 2022, and subscriber numbers have steadily increased. By 2025, 1.3% of Telegram’s user base—approximately 13 million users—had subscribed. Each subscriber contributes an average of $2.8 monthly, and analysts estimate that expanding this segment to 3% of total users could generate $1 billion annually from subscriptions alone.
Advertising revenue has also surged, climbing from $100 million in 2023 to $245 million in 2024, with projections reaching $350 million in 2025. The introduction of video ads in public channels, mirroring YouTube’s model, is expected to further capitalize on Telegram’s vast audience, offering a free, ad-supported experience alongside a premium, ad-free option for subscribers.
A Massive User Base Poised for Growth
Telegram’s expansive user base is a cornerstone of its financial strength. Launched in 2013 with 20 million active users, the platform has grown to over 1 billion users in 2025, with 500 million daily active users. This exponential growth provides a solid foundation for monetization. While the rate of user acquisition may slow as the market matures, the potential to convert more users into premium subscribers remains substantial. Even a modest increase in the percentage of premium subscribers among the 500 million daily users could significantly boost revenue.
A Compelling Opportunity for Investors
Telegram’s new bonds represent a compelling opportunity for investors seeking both yield and growth potential. The 9% coupon rate offers a robust return in a market characterized by low interest rates. Beyond the attractive income stream, the bonds’ convertibility feature—allowing for a 20% discount on shares in the event of an IPO—aligns investors’ fortunes with the company’s continued success.
The platform’s recent profitability, coupled with its massive user base, provides a strong foundation for expanding revenue through subscriptions and advertising. As Telegram refines its monetization strategies, these bonds position investors to benefit from a company poised for sustained growth.
Telegram’s latest bond issuance presents a unique opportunity to invest in a company that has not only achieved profitability but continues to innovate in the competitive messaging app landscape. The combination of a high coupon rate, the potential for share conversion, and a large, engaged user base makes these bonds a standout option. As Telegram continues to expand its premium offerings and enhance its advertising platform, the outlook for both the company and its investors appears promising.
