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The $43 Billion Demand For Alibaba Bonds

The $43 Billion Demand For Alibaba Bonds
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Alibaba Group Holding Ltd (NYSE: BABA) has experienced an almost insatiable demand for its bond offering, according to a Bloomberg report.

Previous reports have indicated that the company is looking to raise approximately $8 billion, which will be used to refinance the company's existing $11 billion of loans and lines of credit.

The final sale amount is not yet known; various news sources have reported a range of sales from $5 billion to $10 billion.

Demand does not appear to be a problem. Sources told Bloomberg that the company has received approximately $43 billion of orders for the bonds, far above the company’s needs, but the timing may be ideal for the company.

"Alibaba’s offering bonds in a market where borrowing costs are still about the lowest ever. Yields on corporate bonds worldwide were 2.66 percent yesterday, compared with an average 4.27 percent during the last decade, according to the Bank of America Merrill Lynch Global Corporate Index. Yields reached a record low 2.43 percent last year," according to Bloomberg.

Alibaba recently traded at $112.06, up 2.9 percent.

Posted-In: BloombergNews Bonds Markets Media Best of Benzinga


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