Alibaba Aims to Raise $5 Billion Through Dual-Currency Bond Issuance

According to sources with direct knowledge of the matter, Chinese e-commerce giant Alibaba Group aims to raise $5 billion through multi-currency dollar and offshore Chinese yuan bonds. Following its record issuance of convertible bonds earlier this year, Alibaba has engaged with banks to sell dollar and yuan bonds that will be used to repay offshore debt and buy back its shares.

The dollar portion of the bonds to be issued will have maturities of 5.5, 10.5, and 30 years. Alibaba is also working on offshore yuan bonds with maturities of 3.5, 5, 10, and 20 years. After China's stimulus measures increased the attractiveness of regional debts, yields on dollar securities in Asia have fallen to all-time lows in recent weeks. Due to higher liquidity, Alibaba is primarily looking to repurchase shares that are listed in the US.