Investors flock to $5 billion Alibaba bond deal despite regulatory woes

Alibaba Group Holding Ltd’s $5 billion U.S.-dollar bond offering was on demand for eight times the debt offered, emphasizing global investors’ faith in founder Jack Ma’s e-commerce giant despite a regulatory clampdown on his business empire.

Pricing for the deal was fixed on Friday tighter than initially released by the company on Thursday, showing high demand for the rare debt float. 

Sovereign wealth funds and high profile U.S. long-only funds were among the buyers. Responses to the deal were viewed as a test for sentiment towards Alibaba despite regulatory heat on Ma’s empire. 

The tension was triggered in late October when Jack Ma gave a speech, publicly criticizing China’s regulatory system. 

A higher portion of Asian investors expressed interest in the deal compared to the last time the company issued U.S. dollar debt in 2017, which was dominated by U.S. buyers.