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Alibaba Deal Prospects Put Suning.com China Bond at 2021 High

Alibaba Deal Prospects Put Suning.com China Bond at 2021 High

(Bloomberg) — Suning.com Co. local bonds climbed Wednesday after news that a consortium led by Alibaba Group Holding Ltd. and a provincial government may be close to buying a stake in part of the troubled Suning conglomerate.

A 5.5% yuan-denominated note maturing in August climbed as much as 1.9% to reach the highest in 10 months, before closing up just 0.4%. Suning.com’s 4.9% onshore bond due in 2023 rose 1% Wednesday to 94.5 yuan.

Bloomberg News reported Tuesday that a group including Alibaba and the government of Jiangsu province, where Chinese billionaire Zhang Jindong’s Suning empire is based, are nearing a deal to buy a stake in the online retail arm. The development could ease concerns about early signs of a liquidity crisis at the conglomerate.

Suning Appliance Group Co. has put off more than 5 billion yuan of combined bond maturity payments since February. But it spent 887 million yuan ($137 million) to repurchase some of its 7.3% local note due in 2023 after some investors triggered an option for early redemption, according to calculations of information in a private bond filing seen by Bloomberg.

Suning Appliance still has a $600 million dollar bond note maturing in September and a combined 24 billion yuan of onshore notes due in 2022 and 2023, according to Bloomberg-compiled data. Suning.com needs to repay or refinance 1.7 billion yuan of local securities through August, including the 5.5% bond.

The agent of Suning International Group’s $500 million loan maturing in 2022 notified lenders it received funds for a partial prepayment and would transfer the money on Wednesday, Bloomberg News reported Tuesday.

(Adds closing bond prices in the second paragraph.)

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Julia Mangels

Julia has handled various businesses throughout her career and has a deep domain knowledge. She founded Stock Market Pioneer in an attempt to bring the latest news to its readers. She is glued to the stock market most of the times and just loves being in touch with the developments in the business world.

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