Alibaba on brink of $8bn bond sale
Chinese e-commerce juggernaut Alibaba, fresh from its record breaking $25bn initial public offering, is plotting a second sell-off, this time in the form of $8bn in bonds over the coming weeks.
The cash windfall will be used to refinance its credit facilities, as the firm moves quickly to lock in record low interest rates and tap a surplus of investment funds sloshing with cash.
Morgan Stanley, Citigroup, Deutsche Bank and JPMorgan Chase have been appointed to manage the sale, which carry an A+ investment grade, with analysts projecting the Chinese giant will further consolidate its position at home whilst gaining share abroad courtesy of its massive war chest.
Amongst those bullish about Alibaba’s near term prospects is S&P analyst Tony Tang who said that he anticipates Alibab will ‘maintain its dominant market position, profitability, and net cash position over the next 24 months’.
Alibab’s value has skyrocketed since its New York IPO, surging from $168bn just two months ago to $285bn today.