Alibaba Aims to Raise $5 Billion in Bond Offerings

By Scott Murdoch

SYDNEY (Reuters) – Chinese ecommerce giant Alibaba (NYSE: BABA) Group is aiming to raise $5 billion in multi-tranche dollar and offshore Chinese yuan bonds, according to two sources familiar with the matter.

The company noted in a regulatory filing on Monday that it is considering this transaction.

The dollar tranche would consist of:
– A 5.5-year bond
– A 10.5-year bond
– A 30-year bond

In addition, Alibaba is working on an offshore yuan tranche including:
– 3.5-year
– 5-year
– 10-year
– 20-year bonds, as stated in the term sheet reviewed by Reuters.

Prospective investors have been informed by banks involved in the deal that the aim is to raise $5 billion. The sources chose to remain anonymous due to the confidential nature of the information.

In its regulatory filing, Alibaba indicated that the size, interest rate, and maturity of the bonds would be determined as the transaction evolves.

The company has stated that the funds raised will be utilized for general corporate purposes, including debt repayment and funding share repurchases.