Alibaba seeks to refinance $6.5 billion bank loan due next year

Technology giant Alibaba Group Holding Ltd. is in talks with banks to refinance a $6.5 billion loan maturing next year, according to people familiar with the matter.

Alibaba is offering to pay a pricing of below 80 basis points over the Secured Overnight Financing Rate to existing lenders agreeing to grant a five-year revolving credit facility, the people said, asking not to be identified discussing private matters. Talks are ongoing and details of the financing could still change, they added.

Alibaba is heavily investing in its cloud division and large language models, as the company seeks to diversify its revenue streams beyond its core e-commerce operations, Bloomberg News reported. The company posted a disappointing revenue growth of 7% in the March quarter and is set to report earnings on Friday.


Alibaba didn’t immediately respond to a request for comment.