It's time for bonds and this is also demonstrated by the latest transaction by Alibaba, the Chinese e-commerce giant which despite the financial tensions of recent months, due to the clash between the founder Jack Ma and the local authorities, managed to place $5 billion in bonds. In detail, Alibaba issued four series of bonds ranging in price from 2,143% to 3,251%: it sold $1,5 billion each of 10-year and 30-year bonds, plus $1 billion of both maturities at 20 and at 40 years.
The operation also has a green value, as is increasingly the case around the world: the 20-year bonds are in fact sustainable bonds and the proceeds will be used to finance projects such as building greener offices or installing more energy-efficient data centers. A few days ago, the group also released its quarterly report, which exceeded forecasts, with profits up 52% to the equivalent of $12,3 billion, while sales increased by 37%.
NEW ISSUES ALSO FOR ILIAD AND ITALGAS
Also in Europe, the news of two other issues has arrived in these hours. It's about Iliad, the French telecommunications operator which has also been operating in Italy for some years, and Italgas. Iliad has successfully placed the bond issue in a double tranche for a total amount of 1,3 billion euros, the largest bond issue for an unrated issuer since Iliad's previous double tranche issue in 2018.
The main features of these loans are as follows: the first tranche is for an amount of 600 million euro, with a duration of 3 years (maturity 11 February 2024) and presents a annual coupon of 0,750%; the second tranche has an amount of 700 million euro, with a duration of 7 years (maturity 11 February 2028) and which has an annual coupon of 1,875%. Overall demand has even tripled supply, reaching i 3,9 billion euros.
Finally, Italgas. The Italian group, which has a BBB+ rating from Fitch and a Baa2 rating from Moody's, has launched a new dual tranche bond issue at a fixed rate with maturities of 7 and 12 years, of 500 million euros each, addressed only to institutional investors. In addition, a purchase offer was presented to the holders of the following bonds issued by Italgas under its Euro Medium Term Note programme: 750.000.000 euro at 0,500%, maturing on 19 January 2022, and 650.000.000 euro at '1,125%, maturing on March 14, 2024.
