Alibaba announced on July 3 it plans to issue HK$12 billion (about $1.5 billion) in zero-coupon exchangeable bonds due in 2032 to fund its cloud infrastructure and a global e-commerce push. The bonds will reference Alibaba Health shares, with Alibaba retaining control even if settled fully in stock. The move comes as the Chinese tech giant deepens its investments in AI and e-commerce. In February, CEO Eddie Wu said the group would focus on domestic and international e-commerce, AI+cloud tech, and internet platforms. Alibaba recently merged food delivery service http://Ele.meEle.me> and travel platform Fliggy into its China digital commerce unit and pledged RMB 380 billion ($53.03 billion) over three years to cloud and AI, surpassing its spend from the past decade in these areas. The use of Alibaba Health, shares of which have risen 40% this year, enables the group to secure low-cost financing without diluting its equity. The company reported RMB 366.4 billion ($51.13 billion) in net cash as of March. The bonds won’t affect Alibaba Health’s operations or collaborations, with Alibaba continuing to support its healthcare arm. [HKET, in Chinese]
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