Alibaba Group Holding (NYSE:BABA) plans to issue U.S. dollars and Chinese yuan bonds to raise capital. The company aims to repay existing debt and support an ongoing stock buyback initiative.
The decision to tap the bond market comes as the company seeks to leverage low global interest rates, providing an opportunity to replenish its capital base while enhancing shareholder value.
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The exact principal amount, interest rates, and maturity terms for the bonds will be determined at the time of pricing, SCMP cites a filing with the Hong Kong Stock Exchange.
The issuance will likely generate up to $5 billion, with Reuters indicating the dollar-denominated bonds will have maturities of 5.5, 10.5, and 30 years.
The yuan-denominated bonds will carry tenors of 3.5, 5, 10, and 20 years, showcasing a broad range of options for potential investors.
Market analysts suggest that declining interest rates in the Asia-Pacific region have made debt issuance an attractive option for companies ...