Alibaba-W plans to issue approximately $3.2 billion in zero-coupon convertible preferred notes
Alibaba-W plans to issue approximately $3.2 billion in zero-coupon convertible senior notes, expected to mature in 2032. The notes will be offered in offshore transactions to non-U.S. persons in accordance with U.S. securities laws. The proceeds will be used to enhance cloud infrastructure capabilities (approximately 80%) and expand international business operations (approximately 20%) to improve market position and efficiency
According to the announcement from Alibaba-W (09988), the company plans to issue zero-coupon convertible preferred notes with a total principal amount of approximately $3.2 billion, maturing in 2032. The issuance of the notes will be conducted in offshore transactions to certain non-U.S. persons under Regulation S of the U.S. Securities Act, and will be subject to market and other conditions.
Alibaba Group will use the net proceeds from the note issuance for general corporate purposes, with a strategic focus on enhancing the company's cloud infrastructure capabilities and expanding international business operations. Specifically, approximately 80% will be allocated to enhancing cloud infrastructure, including expanding data centers, upgrading technology, and optimizing services to meet growing demand. The remaining 20% will be used to expand international business operations, focusing on operational investments to enhance the company's market position and efficiency
