Alibaba to Raise $1.53 Billion Through Exchangeable Bonds for Cloud and Global Commerce Growth
Chinese tech powerhouse Alibaba Group has announced plans to raise HK$12 billion ($1.53 billion) through exchangeable bonds, as it ramps up investment in cloud computing, AI infrastructure, and international commerce.
The exchangeable bonds, which will be linked to shares in Alibaba Health Technology, are designed to pay no interest over their term. Bondholders will have the option to convert their holdings into Alibaba Health shares at a later date. According to an exchange filing, Alibaba Group owns approximately 64% of Alibaba Health.
Strategic Focus: Cloud, AI, and Global Expansion
While Alibaba remains best known for its e-commerce dominance in China, the company is aggressively expanding its cloud and AI services, building on its Qwen AI models and deploying cloud infrastructure globally. The tech giant has announced new investments in cloud infrastructure across Thailand, Mexico, and South Korea, aiming to support its international commerce and data services initiatives.
Alibaba Taps Asia’s Debt Market Momentum
This bond issuance follows Alibaba’s $5 billion dual-currency bond sale in November 2024, the largest such deal in Asia-Pacific that year. The company is now tapping into a strong Asian credit market, buoyed by supportive monetary and fiscal policies from Beijing.
Investors have shown increasing interest in exchangeable and convertible bonds issued by major Chinese tech companies. Earlier in 2025, Baidu raised $2 billion via exchangeable notes tied to Trip.com, while Miniso completed a $550 million convertible bond deal using its Hong Kong-listed shares instead of U.S.-traded ADRs.
Alibaba Health: Still a Core Strategic Asset
Alibaba emphasised that despite the new bond offering, Alibaba Health Technology will remain a flagship healthcare platform and a consolidated subsidiary of the group, even after any potential bond conversions.
This suggests that the company sees long-term value in Alibaba Health’s role within its broader ecosystem, particularly as health tech becomes increasingly tied to cloud and AI-driven services.
Key Takeaways
- Bond Value: HK$12 billion (~$1.53 billion)
- Linked Asset: Alibaba Health Technology shares
- Purpose: Cloud expansion, AI innovation, global commerce infrastructure
- Ownership: Alibaba Group holds 64% of Alibaba Health
- Investor Appeal: No interest paid, optional share exchange
Alibaba’s move reflects a broader trend among Chinese tech firms using exchangeable bonds to unlock liquidity, support expansion, and align with strategic investment priorities.
