Alibaba To Raise $5 Billion In Largest Corporate Deal In Asia Pacific

The Chinese giant Alibaba is in negotiations to raise $5 billion in a multicurrency bond sales deal, which would be the biggest corporate deal in the Asia Pacific this year.

According to Reuters, anonymous sources familiar with the matter showed the news agency documentation with the terms for bond sales—a type of debt instrument.

The multinational technology conglomerate is negotiating a multiple tranches agreement in dollars and another one in yuans.

Alibaba confirmed this Monday that it is planning on raising funds with bonds but didn’t share details of the deals.

If the deals go through, according to data from the London Stock Exchange Group (LSEG), the funding would become the largest bond deal in the Asia Pacific in the industry.

Last Friday, the e-commerce giant shared its quarter results 2024 for the past period, showing steady growth and a 5% increase in revenue, totaling $33,701 million.

“We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth,” said Eddie Wu, Chief Executive Officer of Alibaba Group in a public statement.

With the new investment, Alibaba expects to use the cash to repay debts and other corporate requirements.

According to Benzinga, the e-commerce giant expects to get lower interest rates with the bond deals to restore or increase its financial capital and resources. This could allow Alibaba to buy back shares and make strategic investments without compromising its financial resources.

Alibaba has also joined the AI boom, the Chinese tech giant recently released over 100 new open-source AI models and text-to-video AI tools.