Alibaba raises US$5 billion from dual-currency bond issue, boosting Hong Kong’s hub status

Alibaba Group Holding raised US$5 billion from a multi-tranche dual-currency bond offering, the Chinese e-commerce giant said on Wednesday, an initiative that looks to enhance Hong Kong’s role as an international financial centre.

Hangzhou-based Alibaba, owner of the South China Morning Post, concurrently issued US$2.65 billion in US dollar-denominated notes and 17 billion yuan (US$2.35 billion) in offshore yuan-denominated notes, following the firm’s announcement on Monday of a bond offering plan. Net proceeds are to be used for general corporate purposes, including repayment of offshore debt and share buy-backs.

Chinese Vice-Premier He Lifeng said at the Global Financial Leaders’ Investment Summit this week that Beijing will continue to back the city’s role as the offshore yuan hub, part of a long-term strategy outlined in China’s third plenum. The Communist Party’s third plenum in July mapped out a wide range of measures that the country will focus on for the next five years and beyond.