Alibaba seeks $5b in dual-currency bond offering

China’s e-commerce giant Alibaba Group is aiming to raise $5 billion through a multi-tranche bond issuance, according to two sources with direct knowledge of the matter.

The company officially confirmed plans for the fundraising in a regulatory filing on Monday but did not disclose specific details regarding size, interest rates, or maturity dates. These specifics will be determined as the transaction progresses.

This potential deal, if successful, would be the largest corporate bond offering in the Asia Pacific region so far in 2024, according to data from LSEG.  Alibaba’s last tapped-the-dollar bond market occurred in 2021.

A term sheet reviewed by Reuters reveals the current dollar tranche could include bonds with maturities of 5.5, 10.5, and 30 years. Additionally, Alibaba is working on a yuan-denominated tranche with maturities of 3.5, 5, 10, and 20 years.

Sources familiar with the deal, who requested anonymity due to confidentiality concerns, indicated that banks involved have communicated a $5 billion fundraising target to potential investors.

Attribution: Reuters

Subediting: M. S. Salama