Alibaba Group Holding Ltd - 20-F filing on 2023-07-21

Unsecured senior notes

12 Months Ended

Mar. 31, 2023

21.

Unsecured senior notes

In November 2014, the Company issued unsecured senior notes including floating rate and fixed rate notes with varying maturities for an aggregate principal amount of US$8.0 billion (the “2014 Senior Notes”), of which US$1.3 billion was repaid in November 2017, US$2.25 billion was repaid in November 2019 and US$1.5 billion was repaid in November 2021. The 2014 Senior Notes are senior unsecured obligations that are listed on the HKSE, and interest is payable in arrears, quarterly for the floating rate notes and semiannually for the fixed rate notes.

In December 2017, the Company issued unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$7.0 billion (the “2017 Senior Notes”), of which US$0.7 billion was repaid in June 2023. The 2017 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually.

In February 2021, the Company issued unsecured fixed rate senior notes with varying maturities for an aggregate principal amount of US$5.0 billion (the “2021 Senior Notes”). The 2021 Senior Notes are senior unsecured obligations that are listed on the Singapore Stock Exchange, and interest is payable in arrears semiannually.

The following table provides a summary of the Company’s unsecured senior notes as of March 31, 2022 and 2023:


	As of March 31,					Effective
	2022		2023			interest rate
	RMB		RMB
	(in millions)
US$700 million 2.800% notes due 2023		4,439		4,800			2.90	%
US$2,250 million 3.600% notes due 2024		14,256		15,410			3.68	%
US$2,550 million 3.400% notes due 2027		16,091		17,397			3.52	%
US$1,500 million 2.125% notes due 2031		9,469		10,234			2.20	%
US$700 million 4.500% notes due 2034		4,400		4,754			4.60	%
US$1,000 million 4.000% notes due 2037		6,300		6,807			4.06	%
US$1,000 million 2.700% notes due 2041		6,256		6,761			2.80	%
US$1,750 million 4.200% notes due 2047		11,014		11,898			4.25	%
US$1,500 million 3.150% notes due 2051		9,448		10,206			3.19	%
US$1,000 million 4.400% notes due 2057		6,290		6,795			4.44	%
US$1,000 million 3.250% notes due 2061		6,296		6,803			3.28	%
Carrying value		94,259		101,865
Unamortized discount and debt issuance costs		668		665
Total principal amounts of unsecured senior notes		94,927		102,530
Less: current portion of principal amounts of unsecured senior notes		—		(4,801	)
Non-current portion of principal amounts of unsecured senior notes		94,927		97,729

The effective interest rates for the unsecured senior notes include the interest charged on the notes as well as amortization of the debt discounts and debt issuance costs.

The unsecured senior notes contain covenants including, among others, limitation on liens, consolidation, merger and sale of the Company’s assets. As of March 31, 2023, the Company is in compliance with all these covenants. In addition, the unsecured senior notes rank senior in right of payment to all of the Company’s existing and future indebtedness expressly subordinated in right of payment to the notes and rank at least equally in right of payment with all of the Company’s existing and future unsecured unsubordinated indebtedness (subject to any priority rights pursuant to applicable law).

21.

Unsecured senior notes (Continued)

As of March 31, 2023, the future principal payments for the Company’s unsecured senior notes will be due according to the following schedule:


	Principal amounts
	RMB
	(in millions)
Within 1 year		4,801
Between 1 to 2 years		15,431
Between 2 to 3 years		—
Between 3 to 4 years		—
Between 4 to 5 years		17,488
Thereafter		64,810
		102,530

As of March 31, 2022 and 2023, the fair values of the Company’s unsecured senior notes, based on Level 2 inputs, were US$14,067 million (RMB89,319 million) and US$12,523 million (RMB85,886 million), respectively.