Alibaba Group Holding Ltd. has raised $5 billion through its first public bond issuance in nearly four years, a strategic move aimed at refinancing offshore debt and supporting equity buybacks. The Chinese e-commerce giant issued $2.65 billion in dollar-denominated bonds across three tranches, including a 30-year bond priced at 1.05 percentage points above U.S. Treasury yields, tightening from an initial premium of around 1.30 percentage points. Investor demand was strong, with the deal’s order book surpassing $18 billion, according to a source familiar with the matter.
In addition to the dollar notes, Alibaba issued 17 billion yuan ($2.3 billion) in offshore bonds across four tranches, further diversifying its funding sources. This dual-currency issuance aligns with Alibaba’s broader financial strategy; earlier this year, the company raised $5 billion in a private offering of convertible notes.
The timing of the bond issuance coincides with a surge in dollar-bond activity by Chinese issuers, spurred by domestic stimulus measures and a softening U.S. Federal Reserve rate environment. In October, dollar-bond sales by Chinese firms more than doubled compared to the previous year, supported by historically low spreads in secondary markets for Asian debt.
The fundraising comes as Alibaba faces slowing growth in its domestic e-commerce business. In its latest earnings report, the company disclosed muted performance in its core operations for the quarter ending September 30, despite notable progress in its international and cloud computing divisions.
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