Alibaba to seek $4 bil­lion loan from eight Banks

The Pak Banker - - BUSINESS -

Alibaba Group Hold­ing Ltd. is seek­ing a loan of as much as $4 bil­lion from at least eight banks, ac­cord­ing to peo­ple with knowl­edge of the mat­ter. The banks are ex­pected to be­gin mar­ket­ing a $3 bil­lion loan to other lenders, with the in­ten­tion of in­creas­ing the size de­pend­ing on de­mand, the peo­ple said.

The loan would be used to fund ex­pan­sion plans, in­clud­ing ac­qui­si­tions, the Wall Street Jour­nal re­ported ear­lier to­day, cit­ing sources it didn't name. China's big­gest on­line shop­ping com­pany has shown an ap­petite for deals re­cently as it fends off tight­en­ing com­pe­ti­tion in a slow­ing econ­omy. In De­cem­ber, BNP Paribas SA an­a­lysts said Alibaba could spend as much as $38 bil­lion in deals this year to take on Ten­cent Hold­ings Ltd. and Baidu Inc. The three com­pa­nies were al­ready in­volved in more than $30 bil­lion of ac­qui­si­tions an­nounced in 2015 as they ex­pand into so-called on­line-to-off­line ser­vices such as de­liv­ery and phys­i­cal re­tail­ing.

Alibaba has $11 bil­lion of ex­ist­ing loans and credit lines from banks in­clud­ing Cit­i­group Inc., Deutsche Bank AG, JPMor­gan Chase & Co. and Mor­gan Stan­ley. The com­pany's ex­ist­ing lenders are among the banks ar­rang­ing the new fa­cil­ity, said the peo­ple, who asked not to be named as the talks are pri­vate. The com­pany has a $2.5 bil­lion term loan and a $1.5 bil­lion re­volv­ing credit line that are due April 30.

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