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Alibaba executives to take out personal loans against company stock holdings: Bloomberg

Alibaba Group Executive Chairman Jack Ma.
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Alibaba Group Executive Chairman Jack Ma.

The leadership at Alibaba may raise cash by taking out a personal loan, using their stock as collateral to avoid spooking investors, unnamed sources told Bloomberg Friday.

Alibaba leaders told investors they would not sell shares of the Chinese e-commerce giant, even after they are permitted to do so under an agreement that ends next month, according to the last quarterly earnings call. So, to inject liquidity into the family hedge fund, Jack Ma, chairman, and Joseph Tsai, vice chairman, may need to take out a $2 billion loan instead, Bloomberg reported.

Representatives at Alibaba did not immediately respond to CNBC's request for comment.

The margin loan would allow a bank to either collect cash from Ma and Tsai if the value of Alibaba's shares declines, or sell the shares for cash, the Bloomberg report said. Share financing is a common tool used by executives with a "strong belief in the future growth potential of their companies,"an Alibaba spokesman told Bloomberg.

The loan would come at a time when Alibaba's growth has been dampened by the slowing Chinese economy. Tsai and Ma, both billionaires, would invest the loan money in Blue Pool Capital, a firm that manages the wealth of several Alibaba executives, sources told Bloomberg.

For the complete story from Bloomberg News, click here.