Lokesh Choudhary · · 1 min readAlibaba looking at $5b raise through bond issuance: report
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After JD.com recently revealed its plans to issue convertible notes, now Alibaba Group is thinking about taking a similar step, Bloomberg reported.
Alibaba aims to gain capital by buying back shares and boosting its growth strategies. However, as the report pointed out, the firm is hoping to get roughly US$5 billion – a lot more than the US$1.75 billion that rival JD.com recently announced.
Alibaba needs more capital to strengthen its core commerce and cloud services, which have slowed amid the Chinese government’s larger crackdown on tech as well as the company’s own internal upheaval. To address this, the ecommerce giant boosted its share buyback program by US$25 billion earlier this year.
While the firm’s revenue increased 7% year on year to US$30.7 billion in Q4 2024, quarterly income still fell by a massive 86% compared to the previous year.
Despite the challenges, Alibaba recently invested an additional US$230 million in Lazada, its Southeast Asia-focused ecommerce platform, according to data from Alternatives.pe, which tracks regulatory filings in Singapore.
See also: Southeast Asia’s ecommerce players go low to get ahead in price war
Editing by Putra Muskita and Dhania Putri Sarahtika
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