Alibaba Group Holding Ltd. plans to complete a $3 billion loan this month and probably won’t market the deal more widely in general syndication, said three people familiar with the matter.
The loan is being marketed to banks in senior syndication and Alibaba expects to complete the facility at this stage, with enough commitments from banks to avoid further syndication. Alibaba may raise about $2 billion in senior syndication, the people said yesterday, declining to be identified because the details are private.
Australia & New Zealand Banking Group Ltd. (ANZ), Credit Suisse Group AG, DBS Bank Ltd., Deutsche Bank AG, HSBC Holdings Plc, and Mizuho Corporate Bank Ltd. have already signed and underwritten the facility, the people said.
Taipei Fubon Commercial Bank Co. committed $130 million to the loan this week, while Barclays Plc and Morgan Stanley committed $300 million each to the facility earlier this month, the people said. Bank of East Asia Ltd. (23), Natixis and Taishin International Bank also joined the loan earlier this month, the people said.
The deadline for banks to respond with commitments is April 30, the people said. John Spelich, a Hong Kong-based spokesman for Alibaba, declined to comment on the financing when contacted on his mobile telephone.
Alibaba Group, run by billionaire Jack Ma, offered HK$13.50 ($1.74) a share for the 27 percent it doesn’t already own in Alibaba.com Ltd. (1688), according to a Feb. 21 regulatory filing.