Alibaba Seeking $3 Billion Loan to Buy Back Yahoo Stake

February 8, 2012 at 9:12 pm PT

Chinese Internet giant Alibaba Group Holding Ltd. is in the process of raising a US$3 billion loan from around six banks to buy back the stake that Yahoo Inc. owns in the company, people familiar with the situation said Thursday.

Yahoo owns 40% of Alibaba Group.

The six banks — Australia and New Zealand Banking Group Ltd., Credit Suisse Group AG, DBS Bank Ltd., Deutsche Bank AG, HSBC Holdings PLC and Mizuho Financial Group — are in the process of getting internal credit approval to underwrite the loan, which is said to have a tenor of three years with a yield of around 4%.

The loan is expected to be finalized this month, the people said.

Read the rest of this post on the original site

Tagged with: bank, loan, Prudence Ho, The Wall Street Journal, Yahoo Alibaba Group

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