Alibaba Bank Group Said to Sign Loan Document to Include CDB

Alibaba Group Holding Ltd. asked the group of 19 banks providing a $3 billion loan to sign a version of the inter-creditor agreement that includes China Development Bank Corp., three people familiar with the matter said.

A second version allows for the later inclusion of funding from unspecified additional lenders, the people said, asking not to be identified because the details are private.

Alibaba, China’s largest e-commerce provider, will tell the banks tomorrow which version of the agreement will be used, the people said. The funding will be used for Alibaba to privatize its Hong Kong-listed unit, Alibaba.com Ltd. (1688), and to help it buy back a stake of about 20 percent owned by Yahoo! Inc., another person familiar with the matter said May 23.

John Spelich, a spokesman for Alibaba, was unable to immediately comment when asked about the financing today. Feng Qihua, a Beijing-based spokeswoman for CDB, couldn’t be reached when called on her mobile phone today.

Alibaba signed the $3 billion loan with a syndicate of 19 banks yesterday. The facility is split into $2 billion of bridge lending and a $1 billion three-year term loan.

The borrower is seeking as much as $2 billion of funding from CDB, said the person who spoke on May 23. The loan from CDB may be used to replace all or part of the bridge lending, the person said.

To contact the reporter on this story: Wendy Mock in Hong Kong at wmock3@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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