Hangzhou: Alibaba Group has announced it will raise US $1.53 billion through exchangeable bonds to fund its expansion of cloud infrastructure and expand global commerce operations. The bonds are linked to its 64% stake in Alibaba Health Technology, offering investors the option to convert them into shares of the healthcare subsidiary at a later date.
This strategic fundraising comes at a time when Alibaba is accelerating its push into artificial intelligence, data centres, and cross-border commerce in emerging markets such as Mexico, Thailand, and South Korea. The bond issue is aimed at strengthening Alibaba’s competitive position in both the cloud services sector and digital retail landscape.
The exchangeable bonds are zero-coupon, meaning they do not carry interest, but offer upside through equity conversion. It follows a similar US $5 billion issuance in 2024, making this the latest in Alibaba’s capital-raising efforts without diluting its core business ownership.
Financial analysts suggest the move enhances Alibaba Health’s visibility in the market while giving the parent company flexibility to reallocate capital. This structure allows Alibaba to maintain control over its ecosystem, fund new ventures, and minimise risk from direct equity sales.
The decision also reflects a broader trend among Chinese tech giants to diversify funding sources while investing heavily in AI and digital infrastructure. Alibaba’s continued investment in cloud platforms and smart logistics is expected to drive long-term growth, as global demand for scalable cloud services intensifies.
With Beijing’s supportive economic policies and renewed investor confidence in tech-led recovery, Alibaba’s bond offering is seen as a strong step towards global expansion and digital dominance.
-Agencies
