Alibaba Group (NYSE:BABA) has unveiled plans to raise $3.2 billion through a zero-coupon convertible bond, the biggest such issue globally this year.
The fundraising, which follows similar deals by the company in July 2024 and May 2023, is aimed at accelerating international expansion and reinforcing its cloud computing arm.
Nearly four-fifths of the proceeds will go toward building new data centres and upgrading technology, while the rest will support e-commerce ventures. The bond, carrying a conversion premium of up to 32.5%, matures in 2032 and will convert into U.S.-listed shares.
The Chinese group has committed around $53 billion over three years to artificial intelligence, a strategy it says is already driving growth in its cloud business.