Alibaba Group (9988) is resuming plans to issue a $5b US dollar-denominated bond after a series of run-ins with the law. Though, the firm said it would use the money for different purposes, such as COVID-19 response, sustainability-related projects, and renewable energy.
Alibaba’s recent struggles with Chinese authorities started last October when founder Jack Ma gave a speech in which he criticized the Asian powerhouse’s regulatory system. His words didn’t sit down well with President Xi Jinping, resulting in halting the long-awaited stock market debut of Alibaba’s FinTech affiliate, Ant Group, which was valued at $37b.
With this bond sale, Alibaba is testing investor appetite and overall sentiment towards the company, following their latest controversy. Will it still get votes for Prom Queen?