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 returns”, said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
Based in Hangzhou in eastern Zhejiang province, Alibaba has embarked on its most aggressive stock buy-back since launching the programme in the midst of the Covid-19 pandemic in late 2020 to shore up its share price. It has spent US$14.7 billion this calendar year, versus US$9.5 billion in 2023, US$10.9 billion in 2022 and US$10.6 billion in 2021, according to its filings.
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