Alibaba is reportedly planning to raise $3.2 billion through the sale of a zero-coupon convertible bond as it looks to ramp up international expansion and strengthen its cloud computing portfolio. <\/p>\n
According to a report by Reuters, the Chinese e-commerce giant has stated that it intends to allocate 80 per cent of the proceeds to expanding Alibaba’s cloud, with a focus on enhancing its data centre portfolio, upgrading its technology and strengthening its field services. <\/p>\n
The remaining 20 per cent will be used to strengthen its market presence in the e-commerce sector. <\/p>\n
The bond is set to mature on September 2032 and convert into US-listed shares. <\/p>\n
Investors won\u2019t receive interest payments but Alibaba will offer the bond with a 27.5 per cent to 32.5 per cent conversion premium above its US-listed share price, according a document seen by Reuters. Financial markets platform Dealogic says that the vehicle would officially be the largest convertible bond deal of 2025, surpassing DoorDash\u2019s $2.75 billion issuance from May. <\/p>\n
Over the past year, Alibaba has increasingly been allocating capital to AI, alongside strengthening and forming new partnerships to boost AI advancements, with the company\u202fannouncing plans to invest at least $53 billion\u202f(RMB 380 billion) in AI over the next three years, its largest investment in the technology to date. <\/p>\n
In July, the firm\u2019s cloud arm Alibaba Cloud inked a new AI deal with Standard Chartered. <\/p>\n