Reported 5 months ago
Alibaba Group Holding Ltd. is considering a $4.5 billion convertible bond sale, following a $1.75 billion offering by JD.com Inc. The proceeds will fund stock buybacks, core businesses like e-commerce and cloud services, and investments in artificial intelligence. The offering includes a greenshoe option to increase the deal size by $500 million, with plans to repurchase some US-listed American depositary shares and "capped call transactions" to reduce dilution. The bonds have a 0.25% to 0.75% annual coupon, mature in seven years, and are non-callable for the first five years. Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley, Barclays Plc, and HSBC Holdings Plc are assisting with the deal.
Source: YAHOO