Alibaba today announced that it has signed a deal with several international banks for a US$3 billion loan to fuel its expansion and acquisition efforts over the next five years.
Reuters broke the news on the loan, saying the deal was coordinted by a number of major financial institutions, including Citigroup, Goldman Sachs, and Morgan Stanley.
Big spender
Last year, Alibaba spent billions on a number of giant acquisitions and investments – from ride hailing with Didi Kuaidi to video streaming with Youku Tudou, to Indian epayments startup Paytm.
See: Alibaba’s biggest investments of 2015
If this loan is any sign of things to come, then 2015’s investments may pale in comparison to what Alibaba has planned for this coming year.
2016 is still young, but already we’ve seen reports of Alibaba eyeing a stake in a Chinese business magazine, preparing to get into cars, and even attempting to resurrect Groupon.
2015’s investments may pale in comparison to what Alibaba has planned for this coming year.
In addition to its pricey acquisitions of other companies, the folks at Alibaba are also planning some refinements to the company’s core ecommerce marketplaces that will come at no small cost. One key area that the company hopes to expand is global imports into China; the company opened European offices in late 2015 with plans to ship premium goods to Chinese shoppers.
The company has been quiet on the exact plans for its hefty new loan. But one thing is certain: this money won’t sit untapped for long.
Editing by Steven Millward
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