E-commerce giant Alibaba Group has agreed to an US$8 billion loan from nine banks in order to refinance existing debts and raise additional funds.
Citing an unnamed source, the Wall Street Journal reported Thursday the company has closed the loan deal on April 30 from nine banks. These include ANZ, Credit Suisse, Citigroup, Deutsche Bank, DBS Group, HSBC, JPMorgan Chase, Morgan Stanley, and Mizuho Bank, it noted.
The US$8 billion loan comprises of three components--a US$2.5 billion three-year term loan, a US$4 billion five-year term loan, and a US$1.5 billion three-year revolving credit facility, the source added.
Other unnamed sources familiar with the situation said the loan comes as bankers are anticipating the Chinese company's initial public offering (IPO) exercise, and are hoping to deepen their relationships with Alibaba so as to play significant roles in the public offering.
Alibaba Group had earlier this week purchased an 18 percent stake in Sina Weibo for US$586 million as it looks to consolidate its hold on the Chinese online market.