Report: Alibaba draws $38 billion in orders for bond sale

The Chinese internet titan is offering the notes in four tranches, comprising 10, 20, 30, and 40-year maturities. Alibaba’s offer received more than US$38 billion in orders at its peak, the sources noted.

The pricing was set at 0.30% to 0.40% lower than initial guidance, as measured in yields above comparable Treasuries, the people added.

The bond sale comes after Alibaba reported generating US$33.8 billion in the quarter ended December 31, 2020, a 37% increase year over year. Heightened demand for the sale also follows antitrust investigations into the company for alleged monopolistic practices.

Recently, Ant – which is partly owned by Alibaba – struck a deal with Chinese regulators on a restructuring plan that will turn Jack Ma’s fintech giant into a financial holding company.

Alibaba CEO Daniel Zhang told analysts earlier this year that Ant was unable to asses the impact of the restructuring plan on its business but added that only “a very small percentage” of Ant’s credit plans are used to make payments on its marketplaces.

The online retailer has also set up a special task force to conduct internal reviews and communicate with antitrust regulators on complying with their requirements, Zhang added.