Alibaba follows JD.com in issuing up to $5 billion in convertible bonds

SHANGHAI – Chinese e-commerce company Alibaba Group Holding on Friday detailed a plan to issue up to $5 billion in convertible bonds to pay for share repurchases, following rival JD.com in raising new financing.

Alibaba said the $4.5 billion will be issued through a private placement to U.S. and non-U.S. investors, who will have an option to purchase an additional $500 million of bonds. The notes are convertible into Alibaba’s publicly traded American Depository Shares (ADS) prior to maturity on June 1, 2031.