Alibaba seeks $1.53bn bond raise for cloud push

Snapshot

• Alibaba to issue HK$12 billion of exchangeable bonds
• Proceeds earmarked for cloud infrastructure
• Bonds can convert into Alibaba Health shares

Alibaba Group said it will raise about HK$12 billion ($1.53 billion) through exchangeable bonds linked to the Alibaba Health technology business.

The debt will carry no coupon, investors won't receive any interest payouts, but, in the future, they can convert into Alibaba Health shares.

It comes as Alibaba’s broader strategy calls for heavier investment in cloud computing capacity and global commerce operations to sustain growth amid competitive headwinds.

Hong Kong-listed shares of China’s leading e-commerce marketplaces and cloud-computing business closed 2.9% lower on the news.