On September 11, Alibaba Group (阿里巴巴集团) announced plans to issue USD 3.2 billion in zero-coupon convertible senior notes due 2032. According to the company, 80% of the proceeds will be used to enhance cloud infrastructure — including data center expansion, technology upgrades, and service optimization — while the remaining 20% will support international business growth by strengthening operations and improving global market competitiveness.
To mitigate potential dilution, Alibaba also entered into a capped call transaction, setting an upper conversion price about 60% above its Hong Kong closing price. Based on Wednesday’s U.S. closing price of USD 143.93, the cap is around USD 230, reflecting management’s confidence in long-term growth.
Alibaba noted that the issuance would lower overall financing costs. As of June 30, the company held USD 81.8 billion in cash reserves, maintaining strong financial flexibility. Industry analysts say this move underscores Alibaba’s continued focus on cloud computing and global expansion, amid improving global funding conditions.