The company disclosed its intentions for bond issuance in a regulatory filing on Monday, noting that the specifics regarding the size, interest rates, and maturity will be established as the process unfolds.
If successful, this would mark the largest corporate bond issuance in the Asia Pacific region for the year, according to data from LSEG. Alibaba last entered the dollar bond market in 2021, as indicated by the data.
The proposed dollar tranche is expected to include bonds with maturities of 5.5 years, 10.5 years, and 30 years, as outlined in a term sheet reviewed by Reuters.
Additionally, Alibaba is planning to issue offshore yuan bonds with maturities of 3.5 years, 5 years, 10 years, and 20 years, according to the same term sheet.
Banks involved in the transaction have informed potential investors that the company aims to raise $5 billion, as per the sources.
The sources requested anonymity due to the confidential nature of the information.
In its filing, Alibaba stated that the funds raised would be utilized for general corporate purposes, including debt repayment and share repurchase activities.