Bloomberg reports that the pledge by the New York-based bank forms part of a facility that will cut debt costs for China’s biggest e-commerce company, the people said, asking not to be identified because the details are private.
Alibaba is locking in three and five-year loan financing, introducing a smartphone operating system and buying a stake in China’s biggest Twitter-like service - steps considered a prelude to an initial public offering that may value the company at as much as $100bn. Investment banks are keen to form relationships with Alibaba to increase their chances of being selected to help with the share sale.
'Goldman Sachs wants to use this as an opportunity for further chances of cooperation', including the IPO, said Alex Wang, a Beijing-based analyst at Internet consulting group iResearch. 'These banks might not come across a chance like this in years'.
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