Ali Issued $8 Billion Bond Subscription Amount To Seven Times.

Alibaba group has officially launched the first debt financing in the history of the company, according to the US financial and economic weekly.

Alibaba will issue a total of US $8 billion in the US, which will be issued in 6 batches.

The maturity period of the 6 batch of bonds ranges from 3 years to 20 years.

According to reports, the three largest bonds in the debt financing include: five year bonds with a financing amount of US $2 billion 250 million, a yield of 95 basis points higher than that of the US Treasury bonds, and a seven year bond of 1 billion 500 million US dollars. The yield is 115 basis points higher than the US Treasury bond, and the ten year bond with a total value of 2 billion 250 million dollars. The coupon yield is higher than the US Treasury bond by an increase of 128 basis points.

The other three bonds issued by Alibaba also include three year bonds with a total value of US $1 billion, a yield of three basis bonds with a total yield of 300 million US dollars, which is 70 basis points higher than the US Treasury bond. The yield is three month Libor interest rate plus 52 basis points, with a total of 700 million US dollar 20 year bonds. The yield is US Treasury bond yield plus 148 basis points.

It is clear that Alibaba group, which has just won $25 billion in the listing, is not issuing money because it is short of money. Its purpose is to optimize the debt structure.

The $8 billion of the bond will be used to refinance the current debt and credit agreements.

According to reports, Alibaba group's current loan balance and credit limit is as high as 11 billion US dollars.

With the concept of China's e-commerce and good financial performance, Alibaba's stock price rose all the way after its listing, and its market value reached US $300 billion. The issuance of corporate bonds was not a problem.

Bloomberg quoted people familiar with the matter as saying that Alibaba issued $8 billion bonds, but a total of 57 billion orders from Wall Street investors, more than seven times the issue.

As investors rush to buy, Alibaba bond underwriters are lower than originally scheduled.

Yields are down and bond prices are rising.

Balun weekly said Alibaba is also the capital of the United States this year.

The largest corporate bond issuance plan.

Adria Miller, an analyst with GMP securities firm specializing in fixed income investment products, said in a recent interview with Barron weekly website that the demand for newly issued corporate bonds in the US capital market has been very strong recently. Recently, several investment levels of the debt issuance program have been successful. "(AdrianMiller)

Miller said that Alibaba is a company that is well known to investors and has good financial health. For such enterprises, the investment grade corporate bond market is clearly embraced.

The analyst said

The demand for corporate bonds was strong, which resulted in a total issue of $8 billion and a $57 billion subscription order.

The issuance of the bond will end on Thursday afternoon in the United States. In addition, due to the over subscription, the interest margin will be very limited after the listing.

Earlier, the United States had disclosed that the yield of five year bonds issued by the Alibaba was only 1.1 percentage points higher than that of the US Treasury bonds. However, when the final issue was issued, the yield was lower than the original plan, and the yield was lower, which meant that the bonds were more sought after and led to higher prices.

In contrast, the latest five year corporate bond issued by eBay has a yield of 0.87 percentage points higher than that of the US Treasury bonds of the same period.

According to Barron's website, Alibaba was originally divided into 8 groups of bonds, but eventually abolished a group of five year floating rate bonds.