TapTechNews May 23rd news, Bloomberg said that after JD.com, Alibaba is also considering issuing convertible bonds and plans to raise approximately 5 billion US dollars (TapTechNews note: currently about 36.25 billion Chinese yuan) of funds, which helps to provide funds for stock buybacks and promotes growth.
Insiders pointed out that Alibaba has consulted with investment banks on the issuance of bonds that can be converted into US-listed shares. The issuance may be as early as this week, but Alibaba has not made a final decision yet. Bloomberg speculates that Alibaba's issuance scale will exceed that of JD.com.
JD.com released a transaction file this Tuesday and announced the proposed issuance of 1.5 billion US dollars of convertible bonds due in 2029. This company listed in both Hong Kong and New York will offer a coupon rate of up to 0.25%. If the over-allotment option is exercised, the issuance scale can be further expanded by 225 million US dollars, that is, 1.725 billion US dollars. Bank of America, Goldman Sachs Group, Haitong Securities and UBS Group act as bookrunners.
According to the introduction, this will be the largest convertible bond issuance transaction of Asian companies this year. According to the file, JD.com plans to use the proceeds for stock buybacks, overseas expansion, improving the supply chain network and other purposes.