China’s Alibaba will raise $4.5 billion through convertible bonds, share repurchase, ET Retail

Alibaba Group Holding Ltd said on Thursday that the Chinese e-commerce giant will sell about $4.5 billion in convertible bonds and plans to use part of the proceeds to repurchase American depository shares.

The company said it expects to give initial buyers of the notes an option to purchase up to $500 million in additional notes.

It said the redemption and future redemptions would be funded by net proceeds from the bond issue and other available cash.

The Hong Kong-listed e-commerce giant’s shares fell 5.2% after Bloomberg News first reported on a potential bond offering earlier in the day. However, the company’s US-listed shares fell slightly in early trading.