Alibaba Group Announces Offering of $5B Senior Unsecured Notes

On Feb. 5, China’s tech giant Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988) announced the pricing of an underwritten registered public offering of $5 billion senior unsecured notes, per Business Wire.

The senior unsecured notes include the sustainability notes being issued under its sustainable finance framework as identified below, consisting of:

$1.5 billion 2.125% notes due 2031 at an issue price per note of 99.839%;
$1 billion 2.7% notes due 2041 at an issue price per note of 99.265% (the Sustainability Notes);
$1.5 billion 3.15% notes due 2051 at an issue price per note of 99.981%; and
$1 billion 3.25% notes due 2061 at an issue price per note of 99.978%.

The offering is expected to close on Feb. 9, 2021, subject to customary closing conditions.

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Alibaba intends to use the net proceeds of the sale of the Notes (excluding the Sustainability Notes) for general corporate purposes, including working capital needs, repayment of offshore debt, and potential acquisitions of investments in complementary businesses.

In addition, the firm is also planning to use the net proceeds of the sale of the Sustainability Notes to finance or refinance, in whole or in part, one or more of its new or existing eligible projects in accordance with its sustainable finance framework as described in the preliminary prospectus supplement and the final prospectus supplement, when available, relating to the offering. Examples of eligible projects include those in the sectors of green buildings, energy efficiency, COVID-19 crisis response, renewable energy and circular economy and its design.