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Alibaba prices $5 billion dual currency bond deal

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(Reuters) – Alibaba (NYSE:BABA), China’s biggest e-commerce company, said on Wednesday it has priced both its US-dollar-denominated and yuan-denominated bonds as part of the $5 billion it had aimed to raise in the dual currency bond deal.

The company priced an offering of $2.65 billion aggregate principal amount of U.S. dollar-denominated notes and RMB 17 billion ($2.35 billion) worth of offshore yuan-denominated notes.

The offering of the dollar notes is expected to close on Nov. 26, while that of the yuan notes will close on Nov. 28, subject to conditions, the company said in a statement.

Reuters had earlier reported that the U.S. dollar tranche would consist of 5-1/2-year, 10-1/2-year and 30-year bonds, citing a term sheet. The report said Alibaba was also working on 3-1/2-year, 5-year, 10-year and 20-year offshore yuan tranche.

Alibaba intends to use the net proceeds from the offering of the notes for general corporate purposes, including repayment of offshore debt and share repurchases.

($1 = 7.2385 Chinese yuan renminbi)

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