Alibaba to raise US$3.2 billion via convertible notes to fund cloud and e-commerce push

The zero-coupon convertible senior notes – which mature on September 15, 2032 – would be sold via a private offering to non-US investors, the filing said.

The US dollar-denomi denominated notes will not pay any interest but will allow bondholders to exchange the notes into US-listed shares of Alibaba. Upon exchange, Alibaba can opt for payment in shares, cash, or a combination of both.

Alibaba, which owns the South China Morning Post, planned to use the proceeds to boost its cloud business and international commerce operations, the filing said.

“Specifically, the allocation will include around 80 per cent directed towards enhancing its cloud infrastructure, which encompasses scaling up data centres, upgrading technology and improving services to meet growing demand,” Alibaba said.