Alibaba seeks US$3.17 billion in 2025’s biggest convertible issue
The company is raising the funds for purposes including scaling up its data centres, upgrading technology and expanding international commerce operations, the terms show
Alibaba Group Holding is seeking to raise US$3.17 billion in an offering of zero-coupon convertible notes that’s set to be the year’s biggest.
The Chinese e-commerce company’s notes due 2032 will convert into its American depositary receipts, according to terms of the deal seen by Bloomberg News.
Alibaba’s ADRs fell 1.7 per cent to US$141.53 each in after-hours trading as of 5.01 pm on Wednesday (Sep 10). The ADRs had climbed 71.1 per cent in the year to Wednesday’s close.
The company is raising the funds for purposes including scaling up its data centres, upgrading technology and expanding international commerce operations, the terms show. Alibaba is in fierce competition for Chinese consumers, pitting it against rivals including Meituan and JD.com.
Alibaba raised US$5 billion in convertible bonds last year, a record US dollar-denominated issue by an Asian company at the time. In July, it raised HK$12 billion (S$2 billion) from the sale of bonds exchangeable into shares of a unit, Alibaba Health Information Technology.
The notes have a conversion premium of 27.5 to 32.5 per cent over the reference price, the terms show. There is a lock-up on the issuer for 90 days from the pricing date.
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Barclays, Citigroup, HSBC Holdings, JPMorgan Chase, Morgan Stanley and UBS Group are working on the offering. BLOOMBERG
