Reported 5 months ago
Alibaba Group Holding Ltd. has issued a record $4.5 billion in convertible bonds, marking the largest dollar-denominated sale by an Asian company. The funds raised will be used for share buybacks and investments in areas like artificial intelligence. The notes, due in 2031, were priced with a coupon of 0.5% and a conversion premium of 30%, with strong demand from investors. Alibaba is taking advantage of low financing costs and its stock rally to raise capital, aiming to invest in core businesses and cloud services while signaling that its shares are undervalued. The move allows the company to start executing a share buyback immediately, benefiting shareholders by reducing dilution.
Source: YAHOO