Alibaba Group Holding Ltd. plans to start syndicating a loan of as much as $4 billion, people familiar with the matter said.
China’s largest online emporium has hired eight banks as mandated lead arrangers for the facility and they will begin marketing it to other lenders, according to the people, who asked not to be identified because the details are private.
They said the lenders are Australia & New Zealand Banking Group Ltd., Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Mizuho Financial Group Inc. and Morgan Stanley.
Alibaba said in a U.S. regulatory filing Wednesday that it signed a $3 billion five-year loan with a group of eight banks and may boost its size depending on demand from other lenders. The loan will pay 110 basis points more than the London interbank offered rate, according to the filing.
Alibaba plans to use the proceeds to finance merger and acquisition investments, said a separate person familiar with the matter.