Alibaba Group (HK:9988) on Thursday said it plans to raise about $3.2 billion through a zero-coupon convertible bond offering, with most of the proceeds earmarked for strengthening its cloud infrastructure.
The senior notes, due 2032, will be sold to non-U.S. investors, the company said in a statement.
Alibaba intends to allocate around 80% of the funds to expand data centers, upgrade technology to meet the rising demand for cloud services. The remaining 20% will go toward its international commerce operations.
A Reuters report, citing a term sheet, stated that the company will offer the bond with a 27.5% to 32.5% conversion premium above its U.S.-listed share price, and will mature on September 15, 2032, and convert into U.S. shares.
Hong Kong-listed shares of the company traded 1.3% higher as of 05:24 GMT.
Alibaba, also listed in New York, has been investing heavily in its cloud division, which it sees as a core driver of future growth.
