Alibaba guides market on US$5 billion debt sale ahead of pricing on Thursday
- E-commerce giant guides to a price of around 130 basis points over US Treasuries for its 10- year notes
- The bond sale comes after Alibaba reported a 37 per cent surge in revenue for the quarter ended December
Alibaba Group Holding has released guidance to investors on its dollar bond sale of up to US$5 billion ahead of pricing later on Thursday.
The offering by the Hangzhou-based e-commerce behemoth is its first foray into international debt markets since 2017 when it sold US$7 billion worth of bonds.
The initial price guidance on the planned 10-year tranche was around 130 basis points over US Treasuries; for the 20-year bonds, in the area of 140 basis points; for the 30-year, about 150 basis points; and for the 40-year debt, about 160 basis points, according to a terms sheet seen by the Post.
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Ratings agency Moody’s labelled the notes as investment grade “A1 Stable” while S&P and Fitch both said they were “A+ Stable”.
