Alibaba to raise $3.2 billion via convertible bond to fund cloud growth

Group 1 - Alibaba plans to raise $3.2 billion through the sale of a zero-coupon convertible bond to fund international expansion and strengthen cloud computing, making it the largest deal of its kind this year [1][2] - Nearly 80% of the proceeds will be used to expand data centers, upgrade technology, and improve services for cloud solutions, while the remainder will enhance market presence and efficiency in e-commerce ventures [2] - The bond will have a conversion premium of 27.5% to 32.5% above its U.S.-listed share price and will mature on September 15, 2032 [2] Group 2 - Alibaba's Hong Kong-listed shares rose 2.3% to HK$146.1, with a year-to-date increase of 71.6%, while its U.S. stock is up 71.1% [3] - The company is one of China's largest spenders on artificial intelligence, committing 380 billion yuan ($53.37 billion) over three years, with AI being key to expanding cloud revenue [3][4] - In previous fundraising efforts, Alibaba raised $1.5 billion in July via an exchangeable bond and $5 billion in May last year through a convertible bond [4] Group 3 - The Asia-Pacific region has seen $27.8 billion worth of convertible bonds issued this year, compared to $28.7 billion at the same time last year, marking the strongest period in three years [6]