By Martin Mou
Alibaba Group Holding Ltd. is planning to raise up to $5 billion in USD-denominated senior unsecured notes of various maturities up to 40 years, one of the banks advising the bond sale said.
The offering is expected to include a tranche of sustainability notes due 2041, and the Chinese e-commerce giant intends to allocate an amount equal to net proceeds of the sustainability notes to finance or refinance new or existing eligible projects, the bank said.
Alibaba has yet to finalize the terms of the notes, including the principal amount, interest rates and maturity dates.
The company said it intends to use the net proceeds, excluding those from the sustainability notes, for general corporate purposes, such as working capital needs and repayment of offshore debt.
Citigroup, Credit Suisse, Morgan Stanley, J.P.Morgan and CICC are joint bookrunners for the proposed offering.
Alibaba, which is facing regulatory scrutiny in China, on Tuesday posted better-than-expected earnings for the fiscal third quarter ended Dec. 31. Net income attributable to ordinary shareholders was 79.43 billion yuan, equivalent to $12.28 billion, up 52% from a year earlier, on strong consumer activity amid China’s rebounding economy.
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(END) Dow Jones Newswires