The Telegram messenger plans to issue convertible bonds worth at least $1 billion for a restricted circle of investors. About this сообщает Kommersant, citing its own sources.
The bonds will have a five-year term, and the papers will not be listed on an exchange.
The source says that several Russian investors have already received proposals. They are preliminarily promised a yield of 7–8% on the loan amount.
If Telegram goes public within five years, bondholders will be able to convert the debt into shares at a 10% discount to the issue price.
Telegram itself will organise the issue, with banks and brokers in Russia, Europe, Asia and the Middle East acting as agents. The minimum investment to purchase the bonds stands at $50 million, but could be lowered to $10 million, a source said.
According to him, US residents will not be able to participate, and the messenger reserves the right to select investors.
The funds are needed to improve infrastructure and attract new users.
Representatives of the messenger have not yet commented on the information.
Earlier in January, The Information reported that Telegram founder Pavel Durov held private talks with banks and investors about raising $1 billion through convertible bonds and an IPO. Later, Durov partially refuted this information, noting that his team had indeed received loan proposals from financial institutions.
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