On July 3, 2025, Alibaba Group announced plans to raise approximately $1.53 billion (HK$12 billion) through the issuance of exchangeable bonds. These bonds are linked to shares in Alibaba Health Technology, of which Alibaba owns a 64% stake. The bonds will not pay interest over time.
The proceeds from this offering are intended to bolster Alibaba’s investments in cloud infrastructure and global commerce initiatives. This move follows Alibaba’s $5 billion dual-currency bond issuance in November 2024, which was the largest of its kind in the Asia-Pacific region that year.
Despite the strategic intent behind the bond offering, Alibaba’s Hong Kong-listed shares experienced a decline of over 5% following the announcement. Investors expressed concerns over potential dilution and the company’s financing strategy.
