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Telegram carried out a bond placement. A few figures and mixed conclusions.

The placement of Telegram Eurobonds in the volume of $ 1bn is completed. at 7% per annum for 5 years with the possibility of converting into shares with a 10% discount in the event of a company’s IPO. In spite of the reports about the rush of demand, the coupon rate is set at the upper border of the marketed range. There are interesting reports about the probable purchase of bonds for $ 2 million by RDIF. According to the Fund’s mandate, up to 20% of RDIF’s capital can be invested outside of Russia, provided that these projects create added value for the country’s economy. In our opinion, this added value is not obvious, rather it looks like a venture investment. In our opinion, investments in Telegram’s liabilities can only be based on trust in the company’s founder, since the company’s financial metrics would hardly allow it to even go through, say, the admission procedure on the Moscow Exchange: according to Forbes, the loss in 2019 was $ 150 , 9 million and $ 172.7 million in 2018. At the same time, the capital was negative ($ 323.5 and $ 172.7 million in 2019 and 2018, respectively), as well as net assets – minus $ 418 million and $ 245 million.In 2021, the company will have to repay loans for almost $ 700 million. that a significant proportion of bond investors are those who intend to win back losses (almost 30%) from the failed IPO of the TON project. Since the prospects for a quick monetization of the messenger are very vague, the main investment idea is the future IPO, which will allow shifting the debt onto equity investors.

PS. We sincerely love Telegram and deeply respect the creative genius of Pavel Durov. Financial metrics are a trivial attempt at rational assessment, and their application is questionable to projects of this intellectual and social scale.

/ Andrey Bobovnikov /

Source material: https://www.rbc.ru/finances/15/03/2021/604f11019a794780341309c9

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