Alibaba Group, China’s largest e-commerce firm, is looking to raise $5 billion through a series of dollar and offshore Chinese yuan bonds, according to two sources familiar with the matter.
The company confirmed its bond fundraising plans in a regulatory filing on Monday, although it stated that details regarding the size, interest rates, and maturity dates would be determined as the process moves forward. This would mark the largest corporate bond issue in the Asia-Pacific region this year, based on data from LSEG. The company last issued dollar-denominated bonds in 2021.
The proposed dollar tranche includes bonds with maturities of 5.5 years, 10.5 years, and 30 years, as outlined in a term sheet reviewed by Reuters. Additionally, Alibaba plans to offer offshore yuan bonds with terms of 3.5 years, 5 years, 10 years, and 20 years, according to the same document.
Sources involved in the deal indicated that Alibaba aims to raise $5 billion, though they requested anonymity due to the confidential nature of the information.
In the filing, Alibaba stated that the proceeds would be used for general corporate purposes, such as repaying debt and funding share buybacks.
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