Alibaba Group Holding Ltd. said Thursday it has signed a five-year $3 billion syndicated loan agreement with a group of eight lead arrangers.
The loan, which is subject to upsize through over-subscriptions in syndication, has a five-year bullet maturity and is priced at 110 basis points over LIBOR, the company said in a SEC filing. Alibaba said it will use the proceeds of the loan for “general corporate purposes.”
The Chinese e-commerce giant has embarked on a buying spree over the past few years to expand its reach, diversity its investment portfolio and create synergies between its various business units.
The company has bought Hong Kong newspaper the South China Morning Post and made a $3.5 billion bid to buy online video company Youku Tudou. It also spent $4.6 billion for 20 percent of electronics chain Suning Appliance Company Ltd. Alibaba bought online marketing company AdChina to develop its online and mobile marketing capabilities. It also bought a minority stake in smartphone manufacturer Meizu Technology Corp. Ltd. for $590 million.