Alibaba: Plans to issue approximately HK$12 billion in convertible bonds, to be invested in cloud computing and international e-commerce.

Alibaba Group announced plans to issue approximately HK$12 billion zero-coupon convertible bonds due in 2032. The net proceeds from the bond issuance will be used to invest in cloud computing infrastructure construction and support the development of international e-commerce business. According to the announcement, the bonds will reference the common stock of Alibaba Health listed on the Hong Kong Stock Exchange. Alibaba may choose to fulfill the exchange obligation by delivering Alibaba Health shares, cash, or a combination of cash and Alibaba Health shares. Even if Alibaba settles all with Alibaba Health stock, it is expected to maintain control of Alibaba Health. The announcement states that Alibaba Health will remain the flagship healthcare platform and consolidated subsidiary of the Alibaba Group after the bond issuance and future share exchange. The issuance of convertible bonds will not affect the business operations of Alibaba Health, nor will it affect the cooperation between Alibaba Health and other businesses of Alibaba. Alibaba will continue to support the development of Alibaba Health. Alibaba Health's stock has performed well recently, rising 40% since the beginning of 2025, making it a quality investment target. This enables Alibaba to obtain low-cost financing and invest in business development with its superior performance. Due to the convertible bonds not involving new stock issuance, Alibaba Health's total share capital will not be diluted as a result.