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Alibaba to sell up to US$5 billion of dollar bonds as analysts say risk from antitrust investigation is limited
- The bonds have multiple tranches, with maturities of up to 40 years
- China’s antitrust watchdog launched an investigation on December 24 into the company’s business practices, including its exclusivity agreements
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Alibaba Group Holdings is selling up to US$5 billion in international debt markets as analysts brush off the impact of an antitrust investigation into its mainland China e-commerce business.
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The offering by the Hangzhou-based e-commerce behemoth includes a tranche of sustainability notes due in 2041, according to filings where Alibaba’s shares are listed in both the US and Hong Kong.
The senior unsecured notes will come in multiple tranches, with maturities of up to 40 years. Alibaba, which owns this newspaper, will fix the exact size of the offering and the bonds’ interest rates after discussing terms with fixed-income investors. It kicked off marketing calls on Wednesday, people familiar said.
Alibaba unveiled the planned capital raising after reporting a 37 per cent surge in revenue for the quarter ended December, boosted by its extended Singles’ Day campaign last year and handily beating analysts’ estimates.
03:02
Amid pandemic, Chinese consumers spend US$74.1 billion during Singles’ Day online sales festival
Amid pandemic, Chinese consumers spend US$74.1 billion during Singles’ Day online sales festival
China’s antitrust watchdog, the State Administration of Market Regulation (SAMR), launched an investigation on December 24 into the company founded by entrepreneur Jack Ma. The investigation will look into the company’s business practices, including its exclusivity agreements.
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