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Alibaba planning a $5b bond saleINTL

Alibaba planning a $5b bond sale

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?

why it matters
While Jack Ma largely disappeared from the public eye after his speech, his brief resurfacing via video in January did boost the firm’s stock. In addition, Alibaba beat Wall Street estimates for Q3 revenue this week. But will these factors be enough to execute a successful bond sale? We’ll have to wait and see.