Mubadala was among the institutional investors backing a USD 1.7 bn convertible bond issuance from Telegram, joining other existing backers such as US-based BlackRock, Bloomberg reports. Telegram, the widely used messaging app, previously secured investment from Mubadala in its 2021 bond sale. The latest issuance moved forward despite mounting legal scrutiny facing CEO Pavel Durov in France.

The five-year notes, priced at a 9% yield, give holders the option to redeem at 80% of the IPO price if Telegram lists before maturity — similar to terms in its 2021 offering, according to undisclosed sources familiar with the matter.

A portion of the proceeds will be used to repurchase USD 955 mn of its debt maturing in 2026, while the remainder of the issuance will see Telegram raising USD 745 mn in new financing. “With this new funding, we now have more than enough resources to repay the remaining portion of our 2026 bonds,” Durov said.

ICYMI- Durov, who returned to Dubai earlier this year, faces preliminary charges in France of failing to assist authorities investigating unlawful activity on the platform. Durov sought special permission to travel to the US for talks with investors last month but French prosecutors rejected the request, The Wall Street Journal reports. The company was also fined USD 80k by a Moscow court for allegedly for not removing content it says promoted terrorist attacks, pro-Ukrainian actions, and calls for anti-government protests.

Mubadala — the most active sovereign wealth fund last year — continues expanding in private credit. Its private credit portfolio reached USD 20 bn bn in 2024, with the asset class delivering its strongest performance for a third year running.

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