Alibaba To Raise $4.5B Through Convertible Bonds For Share Buybacks Amid Fierce Competition, Slow Recovery
Alibaba To Raise $4.5B Through Convertible Bonds For Share Buybacks Amid Fierce Competition, Slow Recovery
In a bid to fund share repurchases, Alibaba Group Holding Ltd (NYSE:BABA) has announced a $4.5 billion convertible bond issue. This move comes amid increasing competition and a sluggish Chinese economic recovery.
爲了爲股票回購提供資金，阿里巴巴集團控股有限公司（紐約證券交易所代碼：BABA）宣佈發行45億美元的可轉換債券。此舉是在競爭加劇和中國經濟復甦緩慢的情況下采取的。
What Happened: Alibaba plans to issue convertible senior notes maturing in seven years with a coupon of 0.5%, reported The Wall Street Journal. The deal size could reach $5.0 billion if the option to purchase additional notes is exercised in full.
發生了什麼：據《華爾街日報》報道，阿里巴巴計劃發行七年後到期的可轉換優先票據，息率爲0.5％。如果全額行使購買額外票據的期權，交易規模可能達到50億美元。
The notes can be exchanged for shares at an initial conversion price of about $105.04 per American depositary share, a 30% premium over Thursday's closing price of $80.80. Alibaba plans to repurchase about 14.8 million ADS.
這些票據可以兌換成股票，初始轉換價格約爲每股美國存托股105.04美元，比周四的收盤價80.80美元高出30％。阿里巴巴計劃回購約1480萬個ADS。
Fitch Ratings has assigned an A+ rating to the notes, expecting Alibaba to spend $11 billion to $13 billion on share buybacks over the next few fiscal years.
惠譽評級已將這些票據評爲A+，預計阿里巴巴將在未來幾個財年花費110億至130億美元進行股票回購。
Alibaba's buyback pace has accelerated as it faces mounting e-commerce competition and a sluggish Chinese economic recovery from the pandemic. The company spent a record $4.8 billion buying back its shares in the first three months of 2024 when it touched multiyear lows.
阿里巴巴面臨着日益激烈的電子商務競爭和中國經濟從疫情中復甦緩慢，因此其回購步伐有所加快。該公司在2024年前三個月花費了創紀錄的48億美元回購股票，當時股價觸及多年低點。
Why It Matters: Alibaba's decision to raise funds for share buybacks comes at a time when the company is facing intense competition in the e-commerce sector. Its rival, JD.com Inc (NASDAQ:JD), also recently raised $2.0 billion through a five-year convertible bond for share repurchases. This move by Alibaba is indicative of the fierce competition in the Chinese e-commerce market.
爲何重要：阿里巴巴決定爲股票回購籌集資金之際，該公司在電子商務領域面臨激烈競爭。其競爭對手京東公司（納斯達克股票代碼：JD）最近也通過五年期可轉換債券籌集了20億美元，用於股票回購。阿里巴巴的這一舉動表明了中國電子商務市場的激烈競爭。
Despite the challenges, Alibaba's rival Pinduoduo Inc (NASDAQ:PDD) has been experiencing explosive growth, with its revenue more than doubling. This growth has led to analysts predicting a major upside for Pinduoduo with new market openings and rising adoption.
儘管面臨挑戰，但阿里巴巴的競爭對手拼多多公司（納斯達克股票代碼：PDD）一直在經歷爆炸式增長，其收入翻了一番多。這種增長使分析師預測，隨着新的市場開放和採用率的提高，拼多多將有很大的上升空間。
On the other hand, Alibaba has been strengthening ties with luxury brand Louis Vuitton to boost AI-powered luxury retail, indicating its commitment to innovation and growth despite the economic challenges.
另一方面，阿里巴巴一直在加強與奢侈品牌路易威登的關係，以促進人工智能驅動的奢侈品零售，這表明儘管面臨經濟挑戰，但它仍致力於創新和增長。
Amid these developments, Goldman Sachs has raised its forecast for the Chinese market, offering stock ideas to bet on recovery momentum.
在這些事態發展中，高盛提高了對中國市場的預測，提供了股票創意，押注復甦勢頭。
The MSCI China Index, as tracked by the iShares MSCI China ETF (NASDAQ:MCHI), has risen 31% from its lows in late January and 19% in the past month, outperforming most developed and emerging market equity indices.
根據iShares MSCI中國ETF（納斯達克股票代碼：MCHI）追蹤的摩根士丹利資本國際中國指數從1月下旬的低點上漲了31％，在過去一個月中上漲了19％，跑贏了大多數發達和新興市場股票指數。
Image Via Shutterstock
圖片來自 Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
這個故事是使用 Benzinga Neuro 創作的，由 Kaustubh Bagalkote
譯文內容由第三人軟體翻譯。