Alibaba Group Holding (HKG:9988) has completed the offering of about $3.2 billion in zero-coupon convertible senior notes due 2032, according to a Wednesday Hong Kong bourse filing.
Alibaba shares gained 2% in overnight trading.
Net proceeds will be used for general corporate purposes, with a focus on strengthening cloud infrastructure and expanding international commerce operations.
The notes carry an initial conversion rate of 5.1773 ADSs per $1,000, equivalent to a conversion price of $193.15 per ADS, a 31.25% premium to the reference share price.
Alibaba also entered into capped call transactions, effectively raising the conversion price to $235.46 per ADS, representing a 60% premium.
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