Alibaba Group Holding Limited is seeking to float a $ 5 Billion bond, maturing after 40 years
Big global banks such as Citigroup, Credit Suisse, Morgan Stanley, JPMorgan and China International Capital Corporation, are listed as book-runners for the planned bond sale.
Alibaba will use proceeds from the debt instrument to finance sustainability-related projects.
Alibaba share price
Alibaba shares declined in 2020 after a speech in October by its founder Jack Ma prompted Chinese President Xi Jinping to call off Ant Group Co’s blockbuster listing, the company’s financial-technology affiliate.
In December, Chinese authorities launched an antitrust probe into Alibaba and fined it and rivals for product pricing that misled consumers.
Ma has mostly vanished from public life, but resurfaced briefly in January in a video appearance, helping boost Alibaba’s stock.
Financial performance
Alibaba has reported forecast-beating quarterly results, with earnings rising 52% to the equivalent of US$12.3 billion, as sales surged 37%.
Chief Executive Daniel Zhang told investors that Alibaba has set up a task force to review some of its businesses in response to the antitrust probe, and said it was ready to take on more social responsibility.
In recent years, Alibaba’s bonds have generally risen in price as part of a broader market rally, pushing down yields and effectively reducing the cost of any new borrowing for Alibaba.
Global Ratings
Alibaba has solid investment-grade credit ratings, with an A1 rating from Moody’s Investors Service and similar A+ grades from Fitch Ratings and S& P Global Ratings.
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