Alibaba Group Holding is planning to sell bonds denominated in US dollars and Chinese yuan to help repay debt and fund stock repurchases, as the e-commerce leader bets on declining interest rates to replenish its capital.
The principal amount, interest rates, maturity dates and other terms of the notes would be determined at the time of pricing of the offering, the company said in a Hong Kong stock exchange filing on Monday.
Alibaba, owner of the South China Morning Post, aims to raise US$5 billion, according to a Reuters report, citing unnamed sources. The dollar bonds will mature in 5.5 years, 10.5 years and 30 years, while the yuan bonds will have tenors of 3.5 years, 5 years, 10 years and 20 years, the report said.
Low interest rates in Asia-Pacific and other parts of the world have made debt issuance relatively inexpensive, “providing a strategic opportunity for companies to invest or execute share buy-backs to enhance capital…
