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Alibaba Is Said to Consider Offering $5 Billion of Bonds

(Bloomberg)

(Bloomberg) -- Chinese tech conglomerate Alibaba Group Holding Ltd. is considering an offering of bonds totaling the equivalent of about $5 billion as soon as this month, people familiar with the matter said.

The potential debt sale could include dollar and yuan parts, some of the people said, asking not to be identified. It would come after a record private offering of $5 billion of convertible bonds in May by the company, founded by Jack Ma, who was once China’s richest man. 

The last time Alibaba sold standard dollar notes in public markets was with a $5 billion multi-part deal in 2021. It’s not clear if the current plan is for a private placement or a public offering.

There’s seldom been a better time for borrowers to tap credit markets in Asia. Yield premiums on dollar securities in the region fell to all-time lows in recent weeks, after a blitz of monetary and fiscal stimulus measures by Chinese policymakers boosted the appeal of the region’s debt.

Other borrowers have included Meituan, a food delivery giant and shopping platform, which raised $2.5 billion in a two-tranche dollar bond deal in September.

There was no immediate reply from Alibaba to an emailed request for comment. 

--With assistance from Finbarr Flynn and Claire Che.

©2024 Bloomberg L.P.