Alibaba to sell bonds worth USD 5 billion amidst regulatory scrutiny
Category: #business  By Mateen Dalal  Date: 2021-01-07
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Alibaba to sell bonds worth USD 5 billion amidst regulatory scrutiny

According to reliable sources, Chinese multinational technology company Alibaba Group Holding Ltd. is planning to secure around USD 5 billion by trading its dollar-denominated bonds this month. The proceeds are expected to reach up to USD 8 billion, which the company will be utilizing for general corporate expenditure. 

The deal comes along the heels of Co-founder and former Executive Chairman of Alibaba, Jack Ma’s internet empire facing regulatory scrutiny and antitrust probes. Sources claimed that the transaction will be a multi-tranche offering, with specific tenors that are yet to be decided.

It is to be noted that Ma’s absence from public view over the last two months has stirred speculations across all social media platforms regarding his whereabouts. Moreover, the selling of the bonds is an attempt to provide global investors a chance to wager on the company’s long-term prospects amid intense regulatory pressure.

Alibaba’s Honk Kong-listed shares have dropped by almost by a quarter after Chinese regulatory authorities had previously suspended the stock market listing worth USD 37 billion of its sister concern company, Ant Group.

Reportedly, Chinese authorities have ordered the Ant Group to redirect it's lending and consumer finance businesses to meet its capital requirements. Moreover, former U.S. President Donald Trump has appealed for the ban of eight Chinese software applications, including the company’s mobile payment app Alipay, as cited by credible sources.

Alibaba’s Hong Kong-listed shares reportedly increased by around 4%, with a 0.4% drop in the benchmark index. Moreover, the company claimed that its stock prices had plunged by 5.6% over the last three trading sessions.

About Alibaba Group Holding Limited

Founded in 1999, Zhejiang-headquartered Alibaba Group is a multinational technology company that offers specialized services in the internet, retail, and e-commerce. The privately-owned company’s primary offerings include shopping search engines, electronic payment portals, and cloud computing services.

Source credits- https://in.reuters.com/article/china-alibaba-fundraising-exclusive/exclusive-alibaba-plans-5-billion-bond-this-month-amid-regulatory-scrutiny-sources-idINKBN29B0AD

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Mateen Dalal    

Mateen Dalal

Despite working as a professional testing engineer, Mateen Dalal always held a liking for content creation. Following his passion, he now pens down articles for itresearchbrief.com and a couple of similar portals. Mateen is a qualified electronics and telecommunicat...

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