Alibaba plans to raise HK$12B via exchangeable bond offering

Alibaba (NYSE:BABA) plans to raise about HK$12B ($1.53B) through an exchangeable bond offering to boost investments in cloud infrastructure and global commerce operations.

Alibaba proposed to issue about HK$12B aggregate principal amount of Zero Coupon Exchangeable Bonds due 2032 in a private offering to certain non-U.S. persons in offshore transactions outside the U.S.

The bonds link to Alibaba Health Technology, according to the group. Investors can later exchange these bonds for shares in Alibaba Health. The bonds will not bear regular interest.

Alibaba Group holds about 64% of equity interest in Alibaba Health.

Alibaba intends to use the net proceeds from the bond offering for general corporate purposes, including investments to support the development of its cloud infrastructure and international commerce businesses.