Alibaba is said to consider offering US$5 billion of bonds

CHINESE tech conglomerate Alibaba Group Holding is considering an offering of bonds totalling the equivalent of about US$5 billion as soon as this month, people familiar with the matter said.

The potential debt sale could include US dollar and yuan parts, some of the people said, asking not to be identified. It would come after a record private offering of US$5 billion of convertible bonds in May by the company, founded by Jack Ma, who was once China’s richest man.

The last time Alibaba sold standard US dollar notes in public markets was with a US$5 billion multi-part deal in 2021. It’s not clear if the current plan is for a private placement or a public offering.

There’s seldom been a better time for borrowers to tap credit markets in Asia. Yield premiums on US dollar securities in the region fell to all-time lows in recent weeks, after a blitz of monetary and fiscal stimulus measures by Chinese policymakers boosted the appeal of the region’s debt.

Other borrowers have included Meituan, a food delivery giant and shopping platform, which raised US$2.5 billion in a two-tranche US dollar bond deal in September.

There was no immediate reply from Alibaba to an emailed request for comment. BLOOMBERG