AsianFin -- Alibaba Group said on Thursday it plans to raise around $3.2 billion through the sale of a zero-coupon convertible bond, as the Chinese e-commerce giant seeks to accelerate its international business growth and strengthen its cloud computing arm.
According to the company, nearly 80% of the proceeds will be directed toward expanding data centers, upgrading technology infrastructure, and enhancing services in response to surging global demand for cloud-based solutions. The remainder will be allocated to broader corporate purposes, including overseas market expansion.
Alibaba has been among China’s most aggressive adopters of artificial intelligence, integrating AI into its e-commerce ecosystem, logistics networks, and especially its cloud platform. The new investment is expected to bolster Alibaba Cloud’s competitiveness against global rivals such as Amazon Web Services and Microsoft Azure, as well as domestic challengers like Huawei Cloud and Tencent Cloud.
The planned fundraising comes at a time when Alibaba is repositioning itself for long-term growth following a major corporate restructuring. The company has separated its cloud unit into an independent business and emphasized international markets as a new growth driver, particularly in Southeast Asia, the Middle East, and Europe.
Convertible bonds have become a favored fundraising tool for Chinese tech firms looking to strengthen balance sheets and fund strategic initiatives without immediate equity dilution. Investors purchasing the bonds will be able to convert them into Alibaba shares under certain conditions, giving them potential upside exposure to the company’s future performance.
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