Unique: Alibaba is planning a $ 5 billion bond this month below regulatory management


© Reuters. FILE PHOTO: Alibaba Group logo will be displayed during 11/11 Global Shopping Festival The company’s Singles’ Day will be shown at its headquarters in Hangzhou, Zhejiang Province, China


HONG KONG (Reuters) – China Alibaba (NYSE 🙂 Group Holding Ltd plans to raise at least $ 5 billion by selling a US dollar-denominated bond this month, four knowledgeable people said amid the regulatory control of the empire from co-founder Jack Ma.

Depending on investor reaction, the proceeds could reach $ 8 billion, which the e-commerce leader is likely to use for general corporate spending, one respondent said.

The fundraising will be a test of investor sentiment towards Alibaba, coming months after billionaire Ma’s speech in October on regulating innovation that led to the $ 37 billion listing of its subsidiary Ant Group becomes.

Ma’s absence from the public in the meantime has fueled social media speculation about his whereabouts.

The plan for the sale of bonds, including the schedule, is ongoing and is subject to change, respondents said. All refused to be identified as they were not authorized to speak to the media.

Alibaba declined to comment.

Since Ma’s speech, Chinese regulators have launched an antitrust investigation into Alibaba, ordering Fintech Ant to change its lending and other consumer finance business, including creating a holding company to meet capital requirements.

Regulators are also examining Ant’s holdings in dozens of companies and considering directing the company to divest some, Reuters reported last month.

Alibaba’s international bond offering would be third if it were completed, according to Refinitive data. A $ 8 billion bond was sold in 2014 and a $ 7 billion tranche sold in 2017.

Alibaba, with its recent float, will join a number of Asian companies that have benefited from lower borrowing costs and abundant liquidity in world markets in recent months.

The terms of the offer were not immediately known. Two of the respondents said that marketing documents are expected to be available by next week and that the bond is expected to have a 10-year term.

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