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Alibaba Group has announced the pricing of a dual-currency senior unsecured notes offering, consisting of US$2.65 billion in USD-denominated notes and RMB17 billion in RMB-denominated notes. The USD notes include three tranches with rates ranging from 4.875% to 5.625% due between 2030 and 2054. The RMB notes comprise four tranches with rates from 2.65% to 3.50% maturing between 2028 and 2044. The offerings are expected to close in November 2024. The company plans to use the proceeds for general corporate purposes, including offshore debt repayment and share repurchases.
Alibaba Group ha annunciato il prezzo di un’emissione di obbligazioni senior non garantite in due valute, composta da 2,65 miliardi di dollari USA in obbligazioni denominate in USD e 17 miliardi di RMB in obbligazioni denominate in RMB. Le obbligazioni in USD includono tre tranche con tassi che vanno dal 4,875% al 5,625%, con scadenze comprese tra il 2030 e il 2054. Le obbligazioni in RMB comprendono quattro tranche con tassi dal 2,65% al 3,50%, che scadono tra il 2028 e il 2044. Si prevede che l’emissione si chiuda a novembre 2024. L’azienda prevede di utilizzare i proventi per scopi aziendali generali, compreso il rimborso del debito offshore e il riacquisto di azioni.
Alibaba Group ha anunciado el precio de una oferta de notas senior no garantizadas en dos monedas, que consiste en 2.65 mil millones de dólares estadounidenses en notas denominadas en USD y 17 mil millones de RMB en notas denominadas en RMB. Las notas en USD incluyen tres tramos con tasas que varían del 4.875% al 5.625%, con vencimientos entre 2030 y 2054. Las notas en RMB comprenden cuatro tramos con tasas del 2.65% al 3.50%, con vencimientos entre 2028 y 2044. Se espera que la oferta se cierre en noviembre de 2024. La compañía planea utilizar los ingresos para fines corporativos generales, incluyendo el reembolso de deuda en el extranjero y la recompra de acciones.
알리바바 그룹은 26억 5천만 달러의 미국 달러 표시 채권과 170억 위안의 위안화 표시 채권으로 구성된 이중 통화 선순위 무담보 채권 발행의 가격을 발표했습니다. 미국 달러 채권은 2030년부터 2054년 사이에 만기가 도래하는 4.875%에서 5.625%까지의 금리를 가진 세 개의 트랜치로 구성되어 있습니다. 위안화 채권은 2028년부터 2044년 사이에 만기가 도래하는 2.65%에서 3.50%까지의 금리를 가진 네 개의 트랜치로 구성되어 있습니다. 이번 발행은 2024년 11월에 종료될 것으로 예상됩니다. 회사는 수익금을 일반 기업 목적에 사용하고, 해외 부채 상환 및 자사주 매입 등을 포함할 계획입니다.
Alibaba Group a annoncé le prix d’une offre de billets senior non garantis en deux devises, composée de 2,65 milliards de dollars US en billets libellés en USD et de 17 milliards de RMB en billets libellés en RMB. Les billets en USD comprennent trois tranches avec des taux variant de 4,875 % à 5,625 %, échus entre 2030 et 2054. Les billets en RMB comprennent quatre tranches avec des taux de 2,65 % à 3,50 %, échus entre 2028 et 2044. La conclusion des offres est prévue pour novembre 2024. La société prévoit d’utiliser les produits pour des fins d’entreprise générales, y compris le remboursement de la dette à l’étranger et le rachat d’actions.
Alibaba Group hat die Preisgestaltung einer Emission von unbesicherten Senioranleihen in zwei Währungen bekannt gegeben, bestehend aus 2,65 Milliarden US-Dollar an USD-denominierten Anleihen und 17 Milliarden RMB an RMB-denominierten Anleihen. Die USD-Anleihen umfassen drei Tranchen mit Zinssätzen von 4,875% bis 5,625%, die zwischen 2030 und 2054 fällig werden. Die RMB-Anleihen bestehen aus vier Tranchen mit Zinssätzen von 2,65% bis 3,50%, die zwischen 2028 und 2044 fällig sind. Die Emission wird voraussichtlich im November 2024 abgeschlossen. Das Unternehmen plant, die Erlöse für allgemeine Unternehmenszwecke zu verwenden, einschließlich der Rückzahlung von Auslandsverschuldung und Aktienrückkäufen.
Positive
- Successful raising of substantial dual-currency funding totaling US$2.65B and RMB17B
- Proceeds will be used for debt repayment and share repurchases, potentially improving capital structure
- Diverse maturity profile ranging from 2028 to 2054 indicates strong long-term planning
Negative
- Additional debt burden with interest rates up to 5.625% for USD notes
- Long-term debt commitments extending up to 30 years
Insights
This major debt offering totaling $2.65 billion in USD notes and RMB17 billion (~$2.36 billion) in RMB notes represents a significant financial move by Alibaba. The structure includes multiple tranches with maturities ranging from 2028 to 2054, offering varying interest rates between 2.65% and 5.625%.
The dual-currency structure demonstrates sophisticated financial planning, with the RMB portion potentially hedging currency risks while serving domestic operations. The stated use of proceeds for debt repayment and share repurchases suggests a strategic balance sheet management approach. The relatively competitive interest rates, despite recent market volatility, indicate strong investor confidence in Alibaba’s credit quality.
The registration rights agreement for USD notes provides important liquidity assurance to institutional investors, potentially leading to better pricing terms. This debt raising comes at a important time as the company continues its strategic transformation and could provide important financial flexibility.
HANGZHOU, China–(BUSINESS WIRE)– Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba,” “Alibaba Group” or the “Company”) today announced the pricing of (i) an offering of US$2.65 billion aggregate principal amount of U.S. dollar-denominated senior unsecured notes, consisting of:
US$1,000,000,000 4.875% notes due 2030 at an issue price per note of 99.838%;
US$1,150,000,000 5.250% notes due 2035 at an issue price per note of 99.649%; and
US$500,000,000 5.625% notes due 2054 at an issue price per note of 99.712% (collectively, the “USD Notes”);
and (ii) an offering of RMB17 billion aggregate principal amount of RMB-denominated senior unsecured notes, consisting of:
RMB8,400,000,000 2.65% notes due 2028 at an issue price per note of 100%;
RMB5,000,000,000 2.80% notes due 2029 at an issue price per note of 100%;
RMB2,500,000,000 3.10% notes due 2034 at an issue price per note of 100%; and
RMB1,100,000,000 3.50% notes due 2044 at an issue price per note of 100% (collectively, the “RMB Notes,” and together with the USD Notes, the “Notes”).
The offering of the USD Notes is expected to close on November 26, 2024, and the offering of the RMB Notes is expected to close on November 28, 2024, both subject to customary closing conditions.
Alibaba intends to use the net proceeds from the offering of the Notes for general corporate purposes, including repayment of offshore debt and share repurchases.
The Notes have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. The USD Notes are being offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act and to certain non-U.S. persons in offshore transaction in reliance on Regulation S under the U.S. Securities Act. Alibaba intends to enter into a registration rights agreement in connection with the offering of the USD Notes, under which it will agree to use commercially reasonable efforts to file an exchange offer registration statement to exchange the USD Notes for a new issue of substantially identical debt securities registered under the Securities Act or, under specified circumstances, a shelf registration statement to cover resales of the USD Notes. The RMB Notes are being offered and sold only to certain non-U.S. persons in offshore transaction in reliance on Regulation S under the U.S. Securities Act.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States or elsewhere, and shall not constitute an offer, solicitation or sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Any offering of securities will be made by means of one or more offering documents, which will contain detailed material information about the Company and its management and financial statements.
This press release contains information about the pending offering of the Notes, and there can be no assurance that the offering will be completed.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,” “intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to” and similar statements. In addition, statements that are not historical facts, including statements about the intended use of proceeds, the terms of the Notes, the intention of the Company to enter into a registration rights agreement in connection with the offering of the USD Notes and the terms of such agreement, and whether the Company will complete the offering of the Notes, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: financial community and rating agency perceptions of the company and its business, financial condition and the industries in which it operates, market conditions, and the satisfaction of customary closing conditions related to the proposed offering. Further information regarding these and other risks is included in Alibaba’s filings with the U.S. Securities and Exchange Commission and announcements on the website of The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release and are based on assumptions that we believe to be reasonable as of this date, and Alibaba does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241119897976/en/
Investor Relations Contact
Lydia Liu
Investor Relations
Alibaba Group Holding Limited
Media Contacts
Cathy Yan
Ivy Ke
Source: Alibaba Group Holding Limited
FAQ
What is the total value of Alibaba’s (BABA) new notes offering in 2024?
Alibaba’s total notes offering consists of US$2.65 billion in USD-denominated notes and RMB17 billion in RMB-denominated notes.
What are the interest rates for Alibaba’s (BABA) USD notes offering?
The USD notes have three tranches: 4.875% notes due 2030, 5.250% notes due 2035, and 5.625% notes due 2054.
How will Alibaba (BABA) use the proceeds from the 2024 notes offering?
Alibaba plans to use the proceeds for general corporate purposes, including repayment of offshore debt and share repurchases.
When will Alibaba’s (BABA) 2024 notes offerings close?
The USD Notes offering is expected to close on November 26, 2024, and the RMB Notes offering on November 28, 2024.
