Alibaba Completes $8 Billion Bond Deal As Shares Continue Rally
Chinese e-commerce giant Alibaba Group has raised $8 billion in its first-ever bond offering, reported on Thursday evening.
Alibaba received $57 billion in orders for the six-part bond offering, which will be used used to refinance the company's existing credit facilities. At $8 billion, the sale is the largest dollar denominated offering by a Asian company, according to Bloomberg data, eclipsing a recent $6.5 billion offering from Bank of China .
For Alibaba, the deal underscores U.S. investors' comfort and interest in the highly profitable and fast growing tech titan, which was founded by Chinese billionaire Jack Ma. Ratings agencies Moody's , Standard & Poor's and Fitch assigned the equivalent of an A+ rating - A1 at Moody's - to Alibaba bonds earlier this November.
Those ratings make Alibaba the highest-rated non-state owned Chinese issuer, data provided by Fitch show. The company's debt ratings are also ahead of tech giants like eBay , Baidu and Amazon.com , and on par with bellwethers like Oracle and Intel .
In September, Alibaba raised $21.8 billion in its New York Stock Exchange listing, the largest-ever stock offering in the U.S. While Alibaba's IPO priced at $68 a share, the company's stock is yet to trade below $80 on public stock markets.
Alibaba closed Thursday trading up 1% at $109.82, putting its market capitalization at over $265 billion, more than the combined stock market value of e-commerce competitors Amazon and eBay.
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