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Alibaba Plans to Raise Over $1.5 Billion Via Exchangeable Bond Offering

BY MT Newswires | CORPORATE | 07/03/25 08:05 AM EDT

08:05 AM EDT, 07/03/2025 (MT Newswires) -- Alibaba Group (BABA) said Thursday it plans to issue approximately 12 billion Hong Kong Dollars ($1.53 billion) in zero-coupon exchangeable bonds due 2032 tied to Alibaba Health shares listed on the Hong Kong Stock Exchange.

The bonds, offered privately to non-US investors, will be exchangeable into Alibaba Health stock, cash, or both, based on terms finalized at pricing, the company said. The bonds carry no interest and may be exchanged starting 41 days after issuance until five days before maturity, the company said.

Alibaba Health, of which Alibaba (BABA) holds a 64% stake, will remain a consolidated subsidiary after any exchanges, Alibaba (BABA) said.

Alibaba (BABA) also said proceeds from the offering will fund general corporate purposes, including investments in cloud and global commerce operations.

Shares of the company were down 2.6% in recent premarket activity.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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