Alibaba plans to raise $5b through bond sale this month, report says

One of the sources said that Alibaba could raise up to US$8 billion depending on the response from investors. The company will use the funds for general corporate expenditure.

However, the plan to sell the bond as well as the timeline have not been finalized yet and are subject to change, added the report, citing sources.

Alibaba declined to comment to Reuters.

This development comes at a time when the company is being hit by an antitrust probe by Chinese watchdog, State Administration for Market Regulation.

The fundraising, however, is being looked at as a test of investor sentiment toward Alibaba despite the recent increased regulatory scrutiny.

In November, its fintech arm Ant Group’s US$35 billion initial public offering was halted by Chinese regulators. Last month, the fintech giant was asked by the People’s Bank of China to return to its payments services roots.

To add to its woes, a recent executive order signed by US president Donald Trump bans US transactions with eight Chinese apps, including Alipay.