Alibaba Group Holding Ltd. is looking for up to $ 8 billion selling dollars in bonds next week, according to people who know the subject.
The e-commerce giant aims to raise at least $ 5 billion, but could end up more dependent on reception, said people who are not allowed to speak publicly and asked not to be identified. The deal will be one multi-they offered stretches, with specific tenors yet to be determined, they said. Alibaba declined to comment. Reuters previously reported the planned sale.
Withdrawing the sale at a time when the Jack Ma empire is facing intense government pressure at home would be a sign of global investor confidence in the company. In recent months, officials blocked Ant Group Co.’s $ 35 billion IPO, proposed new rules to curb the dominance of Internet giants, and fined Alibaba for acquisitions from previous years. A more thorough examination of mergers and acquisitions could add uncertainty about the growth of large Internet companies.
“We see the issue as a bit exploratory given the greater uncertainty surrounding Ant / Jack Ma,” said Chuanyi Zhou, a credit analyst at Lucror Analytics in Singapore. “It may reveal the extent to which global investors seriously perceive the rapidly evolving regulatory environment in China and the potential impact on Alibaba.”
Alibaba raised about $ 11 billion from the sale of Hong Kong shares at the end of 2019 and had a cash deposit of nearly $ 90 billion at the end of September.
The sale comes as companies come to issue bonds. Borrowers have sold more than $ 65 billion worth of dollar bonds worldwide so far this year, following a record $ 3.6 trillion in 2020, according to data collected by Bloomberg.
The firm took advantage of the global debt market in 2014 for the first time to raise $ 8 billion shortly after its historic debut in New York. It last hit the offshore market with a good $ 7 billion bond deal in 2017 and needs to repay or refinance about $ 1.5 billion due this year, according to data compiled by Bloomberg
Great sellers
China’s largest dollar bond transactions have sold out over the past decade
Source: Bloomberg
Alibaba dollar bonds maturing in 2027 are trading at about 111 cents above the dollar, according to prices compiled by Bloomberg.
Alibaba has spent billions in stakes in promising companies in recent years, expanding its logistics network and cloud hosting services and building an international business through the Singapore-based Lazada online shopping mall. He is now in a fierce battle with Meituan over food delivery, while defending rivals like JD.com Inc. and Tencent Holdings Ltd. in companies from groceries to retail.
– With the assistance of Adrian Yim, Coco Liu and Edwin Chan