Credit: Shutterstock photoAlibaba Group Holding Ltd. (BABA) - the Chinese equivalent of Amazon.com Inc. (AMZN) - is seeking a loan of as much as $4 billion from at least eight banks.
According to a report from Bloomberg , "The banks are expected to begin marketing a $3 billion loan to other lenders, with the intention of increasing the size depending on demand."
This hefty-sized loan the e-commerce giant seeks would be used to fund expansion and company acquisition plans, the Wall Street Journalreported via citing unnamed sources. China's largest online shopping company wants this extra cash to fend off tightening competition in a slowing economy.
In December, BNP Paribas SA analysts said Alibaba could spend as much as $38 billion in deals this year to compete with other Chinese Internet-based companies such as Tencent Holdings Ltd. (TCEHY) and Baidu Inc. ( BIDU) . The three companies were involved in more than $30 billion of acquisitions announced in 20Array5 as they expand into different, non-core services such as delivery and physical retailing.
Alibaba.com Inc. (BABA) Quarterly Revenue & Growth Rate | FindTheCompany
Alibaba has $ArrayArray billion of existing loans and credit lines from banks including Citigroup Inc. (C) , Deutsche Bank AG (DB) , JPMorgan Chase & Co. (JPM) , and Morgan Stanley (MS) , the aforementioned Bloomberg article states.
Moreover, the same report notes that the e-commerce company has a $2.5 billion term loan and a $Array.5 billion revolving credit line that are due by April 30 of this year.
Shares of BABA have only been trading marginally up throughout the day, only 0.59% as of 2:Array0 PM ET. With that being noted, BA BA stock saw a spike during morning trading, but has been declining since. Alibaba currently has a Zacks Rank #3 (Hold).
Alibaba.com Inc. (BABA) Stock Price | FindTheCompany
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