Funds from the United Arab Emirates — Mubadala Investment Company and Abu Dhabi Catalyst Partners — each invested $75 million in Telegram’s convertible bonds. This was reported by report, “Vedomosti”.
Together, the funds became the largest investors to participate in Telegram’s bond issuance, according to a source close to the messaging app’s management.
He added that half of the issue was bought by global investment funds, including Mubadala Investment Company and Abu Dhabi Catalyst Partners, while the remaining 50% was placed by the messenger with European and Russian funds and banks.
The deal with the UAE funds implies a partnership with the Emirate of Abu Dhabi in the area of innovation, details of which are not disclosed.
“Our investments in Telegram establish a strategic partnership that will further strengthen Abu Dhabi’s technology ecosystem,” said Faris Sohail Faris Al-Mazrui, the investment director for Mubadala in Russia and the CIS.
Telegram founder Pavel Durov also stressed the importance of these investments:
“We look forward to the development of this strategic partnership to continue our growth in the Middle East, Central Asia, and worldwide.”
Update (17:37 MSK): In his Telegram channel, Durov confirmed that the messenger raised more than $1 billion through the sale of convertible bonds to major investors from around the world.
Update (17:44 MSK): According to RIA Novosti, the Russian Direct Investment Fund (RDIF) participated in the investments.
Update (19:13 MSK): Telegram vice president Ilya Perekopsky, in comments to RBC, denied RDIF’s participation in the investments.
Update (07:35 MSK, 24.03.21): RDIF representatives stated that on March 23 their fund bought a minority stake in Mubadala Investment Company’s Telegram bonds. This was done as part of a joint Russian–Emirati investment platform.
“The bonds totaling around $2 million were acquired on the secondary market, so the deal has no relation to Telegram’s bond issuance,” said a RBC source close to Telegram.
In February, Kommersant reported plans for Telegram to issue bonds worth $1 billion for a select group of investors.
In January, The Information reported private talks between Pavel Durov and banks and investors regarding raising $1 billion through a convertible bond issue and an IPO for Telegram. Later, Durov himself partially refuted this, noting that his team had indeed received loan offers from financial institutions.
In the same month, Durov, according to The Bell, rejected a bid from a consortium of Western funds to buy 5–10% of the company, based on a $30 billion valuation.
In March, one of Telegram’s convertible-bond placement agents, VTB Capital, valued the company’s potential worth in 2022 at a range of $2.2 billion to $124 billion.
In March, RBC, citing a knowledgeable source, reported that Telegram raised $1 billion through the bond issue.
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