{"id":135426,"date":"2025-09-11T05:23:08","date_gmt":"2025-09-11T05:23:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/135426\/"},"modified":"2025-09-11T05:23:08","modified_gmt":"2025-09-11T05:23:08","slug":"alibaba-to-raise-3-2-billion-via-convertible-bond-to-fund-cloud-growth-etciosea","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/135426\/","title":{"rendered":"Alibaba to raise $3.2 billion via convertible bond to fund cloud growth, ETCIOSEA"},"content":{"rendered":"

China ecommerce leader Alibaba on Thursday said it plans to raise about $3.2 billion through the sale of a zero-coupon convertible bond to fund international expansion and to strengthen its cloud computing business.<\/p>\n

Alibaba, among China’s most aggressive adopters of artificial intelligence, said it would use nearly 80% of the proceeds to expand data centres, upgrade technology and improve services to meet rising demand for cloud computing solutions.<\/p>\n

It said it will invest the remaining 20% in enhancing market presence and improving efficiency in global e-commerce ventures.<\/p>\n

The senior note will mature on September 15, 2032. The bond will convert into Alibaba’s U.S.-listed shares.<\/p>\n

Alibaba raised $1.5 billion in July via an exchangeable bond and $5 billion in May last year through a convertible bond.<\/p>\n

The technology major has become one of China’s biggest spenders on AI, pledging investment of 380 billion yuan ($53.37 billion) over three years.<\/p>\n

In reporting earnings last month, Alibaba said AI was key to expanding its cloud computing revenue, which reported strong quarterly growth even as its wider operations missed revenue estimates.<\/p>\n

“Our investments in AI have begun to yield tangible results,” Wu told analysts in a post-earnings call. “We are seeing an increasingly clear path for AI to drive Alibaba’s robust growth.”<\/p>\n

Its international e-commerce<\/a> division – which includes platforms such as AliExpress, Lazada and Trendyol – is small compared to its domestic business but has been growing quickly in recent years.<\/p>\n

On Thursday, China Pacific Insurance also said it would issue a zero-coupon convertible bond, with the goal of raising HK$15.55 billion ($2.00 billion).<\/p>\n

Hong Kong’s equity capital markets have been on a hot streak in the past six months. Convertible bonds have proven particularly popular as they offer the prospect of equity gains with some paying a coupon, and their principal is repaid at maturity if the option to convert into shares is not exercised. <\/p>\n

Published On Sep 11, 2025 at 09:16 AM IST<\/p>\n

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