Ant Group Co plans to spin off its consumer-credit data operations, people with knowledge of the matter said, a concession to aggressive regulators that should help the Chinese fintech giant get its massive public share sale back on track.
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HONG KONG (Reuters) - Alibaba Group Holding Ltd’s $5 billion U.S.-dollar bond offering received demand for eight times the debt offered, underscoring global investors’ faith in founder Jack Ma’s e-commerce behemoth despite a regulatory crackdown on his empire.
FILE PHOTO: The logo of Alibaba Group is seen at its office in Beijing, China January 5, 2021. REUTERS/Thomas Peter
Pricing for the deal was set on Friday tighter than initially flagged by the company on Thursday, indicating robust demand to buy the rare debt float. The latest international bond offering is Alibaba’s third, according to data from Refinitiv.
Alibaba raised $5 billion via a four-tranche offering late Thursday, receiving more than $38 billion in orders at the peak, according to people with knowledge of the matter. The notes, comprising 10-year, 20-year, 30-year and 40-year maturities, were priced at 30 basis points to 40 basis points tighter than initial price guidance, as measured in yields above comparable U.S. Treasuries, said the people, who aren’t authorized to speak publicly and asked not to be identified.
The new dollar debt sale is the biggest in Asia since a $6 billion issuance by rival Tencent Holdings Ltd. in May. It comes amid growing expectations that Jack Ma’s tech empire may have avoided the worst-case scenarios – which had ranged from a government-led takeover to a break-up of his companies after the billionaire entrepreneur briefly returned to public sight last month and as Ant Group Co. began its lengthy overhaul process. Washington’s decision to drop deliberations of an investment ban on the
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Investors Flock To $5 Billion Alibaba Bond Deal, Shrug Off Regulatory Woes
Investor response to the deal was seen as a sentiment test towards Alibaba amid regulatory heat for billionaire Ma s business empire, triggered by a speech in late October in which he publicly criticised the country s regulatory system.
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Alibaba Group Holding Ltd s $5 billion U.S.-dollar bond offering received demand for eight times the debt offered, underscoring global investors faith in founder Jack Ma s e-commerce behemoth despite a regulatory crackdown on his empire.
Pricing for the deal was set on Friday tighter than initially flagged by the company on Thursday, indicating robust demand to buy the rare debt float. The latest international bond offering is Alibaba s third, according to data from Refinitiv.