Alibaba announces $1.5bn zero-coupon exchangeable bond offering

Alibaba Group Holding Limited announced a proposed offering of approximately HK$12 billion in zero-coupon exchangeable bonds due in 2032. The bonds will be offered to non-U.S. persons in offshore transactions and are exchangeable into ordinary shares of Alibaba Health Information Technology Limited, in which Alibaba Group currently holds approximately 64% of the equity interest. Alibaba intends to use the net proceeds from the bond offering for general corporate purposes, including investments to support the development of its cloud infrastructure and international commerce businesses. The company clarified that this offering does not indicate a change in the status of Alibaba Health as a flagship healthcare platform. Some bond purchasers may employ a convertible arbitrage strategy, which may affect the market price of Alibaba Health shares. The bonds and shares delivered upon exchange have not been registered under the U.S. Securities Act.