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Alibaba Group Announces Completion of Offering of HK$12.023 Billion of Zero Coupon Exchangeable Bonds

1. Alibaba completed a HK$12.023 billion bond offering linked to Alibaba Health shares.

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FAQ

Why Neutral?

The bond offering may lead to stock dilution in the long run, but initial impact is limited. Historical bond offerings typically provide liquidity but may create pressure on stock prices.

How important is it?

The bond offering indicates Alibaba's strategic financial maneuvering, affecting its capital structure. While significant, immediate market reactions may be limited.

Why Long Term?

The exchangeable bonds are due 2032, indicating a long-term impact on Alibaba's financial structure. Past examples show such offerings can influence stock pricing over extended periods.

Related Companies

9988.HKBABA
HONG KONG--(BUSINESS WIRE)--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba,” “Alibaba Group” or the “Company”) today announced the completion of its private offering (the “Bond Offering”) of HK$12.023 billion aggregate principal amount of Zero Coupon Exchangeable Bonds due 2032 (the “Bonds”) by reference to the ordinary shares of Alibaba Health Information Technology Limited (“Alibaba Health”) that are listed on The Stock Exchange of Hon.

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