Alibaba completes $3.2bn convertible senior notes offering

Alibaba Group Holding Limited announced the completion of its offering of approximately $3.2 billion aggregate principal amount of Zero Coupon Convertible Senior Notes due 2032. The notes were offered and sold to certain non-U.S. persons in offshore transactions, relying on Regulation S under the U.S. Securities Act. This financing round concluded on September 16, 2025.

The initial conversion rate for the notes is 5.1773 American Depositary Shares (ADSs) per $1,000 principal amount, equivalent to an initial conversion price of $193.15 per ADS. This conversion price represents a 31.25% premium over the closing price of the ordinary shares on the Hong Kong Stock Exchange, converted to U.S. dollars. Alibaba also purchased capped call options, effectively increasing the conversion price to an initial "cap price" of $235.46 per ADS, a 60% premium to the Reference Share Price.

Alibaba Group intends to utilize the net proceeds from this notes offering for general corporate purposes, with a strategic focus on enhancing its cloud infrastructure capabilities and expanding international commerce business operations. The board of directors includes Mr. Joseph C. Tsai as chairman.