Reported 5 months ago
Alibaba Group Holding is selling up to US$5 billion worth of convertible bonds to fund share buy-backs, with an initial goal of raising close to US$4.5 billion and allowing for an additional US$500 million, marking Asia's largest-ever convertible bond transaction and the world's biggest since 2008. The move reflects the management's confidence in the company's fundamentals, with the choice of convertible bonds over US-dollar bonds due to lower financing costs and conversion only triggered if the price of Alibaba's American depositary shares reaches US$161.6. Alibaba's focus on e-commerce and cloud computing as core businesses was emphasized, with the company aiming to maintain leadership in fundamental technologies and innovations, including artificial intelligence.
Source: YAHOO