You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

Alibaba plans up to $8bn bonds as early as next week

The likely offering will test global investors’ appetite.
Image: Gilles Sabrie, Bloomberg

Alibaba Group intends to raise as much as $8 billion via a dollar bond sale as early as next week, matching its own Chinese record for a single issuance of offshore corporate debt, people familiar with the plans said.

The e-commerce giant aims to raise at least $5 billion but could wind up with more depending on reception, said the people who aren’t authorised to speak publicly and asked not to be identified. The deal will be a multi-tranche offering, with specific tenors yet to be determined, they said. Reuters first reported the news earlier Wednesday.

Moneyweb Insider INSIDERGOLD

Subscribe for full access to all our share and unit trust data tools, our award-winning articles, and support quality journalism in the process.

Choose an option:

R63 per month
R630 per year SAVE R126

You will be redirected to a checkout page.
To view all features and options, click here.

A monthly subscription is charged pro rata, based on the day of purchase. This is non-refundable and includes a R5 once-off sign-up fee.
A yearly subscription is refundable within 14 days of purchase and includes a 365-day membership.

Click here for more information.

Alibaba tapped the global debt market in 2014 for the first time to raise $8 billion — a record that still stands — shortly after its landmark New York stock debut. It last came to the offshore market with a bumper $7 billion bond deal in 2017 and needs to repay or refinance some $1.5 billion of dollar debt which comes due this year, Bloomberg-compiled data show.

The upcoming likely mega offering will test global investors’ appetite for the first time since Beijing launched an antitrust investigation into the company co-founded by beleaguered billionaire Jack Ma. It also comes as its revenue grew at its slowest pace on record for a September quarter, underscoring how the e-commerce giant’s post-pandemic rebound is starting to plateau.

“We view the issuance as somewhat exploratory given the broader uncertainty around Ant/Jack Ma. It may well reveal how seriously global investors perceive the rapidly evolving regulatory environment in China and the potential impact on Alibaba,” Chuanyi Zhou, a credit analyst at Lucror Analytics in Singapore.

Zhou was referring to Ant Group Co., the financial-technology juggernaut also co-founded by Ma that saw its planned $35 billion initial public offering halted by Chinese regulators in November.

Alibaba declined to comment.

The company, which sat on a cash hoard of almost $90 billion at the end of September, has in recent years spent billions acquiring stakes in promising startups, expanding its logistics network and cloud-hosting services, and building up an international business via Singapore-based online mall Lazada.

It is now engaged in a bruising battle with Meituan in food delivery, while fending off rivals like JD.com Inc. and Tencent Holdings Ltd. in businesses from groceries to retail.

© 2021 Bloomberg L.P.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / PODCASTS SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: