Alibaba sells $5bn worth of bonds amid regulatory rambleEuropost
The Chinese e-commerce company Alibaba Group is set to launch a multi-billion bond issue to offset the pressure by regulatory deadlock, Reuters reported. The issue is seen raising some five billion dollars worth of funds.
Some experts even reckon than depending on investor response, proceeds could spike to some $8 billion which the e-commerce leader is likely to use for general corporate expenditure.
The fundraising will be a test of investor sentiment towards Alibaba, coming months after an October speech from company’s founder billionaire Jack Ma about regulation stifling innovation that led to the halting of affiliate Ant Group’s $37 billion stock market listing.
Ma’s absence from public view in the intervening time has fuelled social media speculation over his whereabouts. The bond sale plan, including timeline, is not finalised and is subject to change, the people said, all of whom declined to be identified as they were not authorised to speak to the media. Alibaba declined to comment. Since Ma’s speech, Chinese regulators have begun an antitrust probe into Alibaba and ordered fintech Ant to change its lending and other consumer finance businesses, including the creation of a holding company to meet capital requirements.