Alibaba Group (BABA) is offering its first public dollar bonds in nearly four years to repay its offshore debt and repurchase shares, Bloomberg reported Tuesday, citing a person with knowledge of the matter.
The company will issue the debt in three parts, with a 30-year bond being the longest portion of the offering. The bond will carry an interest rate of 1.05 percentage points above comparable Treasuries, down from an initial price talk of 1.30 percentage points, the person reportedly said.
The transaction drew $18 billion in orders, $13 billion of which was ahead of the US open, according to the report.
Alibaba did not immediately respond to MT Newswires' request for comment.
Shares of Alibaba Group were down 2.6% in recent trading.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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