Alibaba Group plans to raise $ 4.5 billion (S $ 6.08 billion) by issuing convertible bills to provide funds for repurchase stocks.
According to Bloomberg, Alibaba issued an announcement on the Hong Kong Stock Exchange on Thursday (May 23) that the total principal of the proposed private equity issuance is 4.5 billion US dollars, which expires in 2031 to convert priority notes.0.5%of the ticket interest rate is seven years, and the first five years cannot be redeemed.This is the largest US dollar pricing bond issuance in the history of Asian companies.
Ali said that the funds raised by the issuance of the bill will be used to repurchase several Alibaba US deposit shares; further shares to buy back to provide funds for further shares purchased in accordance with the company's existing shares from time to time; to provide funds; for it, as for the funds; for itThe cost of CAPPED CALL Transaction provides funds.
Analysts believe that the repurchase of stocks in Alibaba is conducive to boosting the stock price, and it also shows that the current Ali management believes that Ali stocks are underestimated.In addition, the current market environment provides lower interest rates. Alibaba is funded at 0.5%low -interest bills, which can obtain funds at a lower cost.In terms of business, Alibaba currently needs funds to invest in its core business, cloud business, and increase betting on artificial intelligence.
Bloomberg quoted people familiar with the matter and said that Ali's distribution has received a warm response from global investors, and the order is several times more than the circulation, indicating that the international market's trust in Alibaba and expectations for its future growth.
According to the Wall Street Journal, Fitch Ratings is expected to continue to implement the shareholders' return policy in the next few years to award these bill A+rating.The credit rating company predicts that Alibaba will spend 11 billion to 13 billion US dollars to repurchase stocks in the next few fiscal years.
