Chinese e-commerce giant Alibaba Group Holding Ltd China will launch bonds denominated in dollars. The company, which is led by Jack Ma, is targeting funds of up to $5 billion from this corporate action.
In fact, quoting Reuters, the issuance of these bonds is estimated to raise funds of up to $8 billion. The plan is that the funds will be used for spending by the e-commerce giant.
The bond issuance plan will be a test of investor sentiment towards Alibaba. Amid regulatory crackdown in China on him and financial technology affiliate Ant Group.
The schedule of bond issuence is not final
However, according to Reuters, the bond issuance plan, including the schedule, is not final. In addition, it is subject to change according to information from a number of sources who are aware of the plan but refuse to disclose their identity. On the other hand, Alibaba still refused to comment.
For your information, Chinese officials have been tough on Jack Ma’s business empire since he publicly criticized the country’s regulatory system in October. The criticism sparked a series of events that resulted in the suspension of the $ 37 billion listing of Ant Group shares.
Since Ma’s speech, Chinese regulators have started an investigation into Alibaba’s monopolistic practices. In addition, ordered Ant Financial to change its lending and other consumer financing businesses, including the formation of a holding company to meet capital requirements. On the other hand, the absence of Jack Ma from public view had sparked social media speculation about his existence.