08:05 AM EDT, 07/03/2025 (MT Newswires) -- Alibaba Group ( BABA ) said Thursday it plans to issue approximately 12 billion Hong Kong Dollars ($1.53 billion) in zero-coupon exchangeable bonds due 2032 tied to Alibaba Health shares listed on the Hong Kong Stock Exchange.

The bonds, offered privately to non-US investors, will be exchangeable into Alibaba Health stock, cash, or both, based on terms finalized at pricing, the company said. The bonds carry no interest and may be exchanged starting 41 days after issuance until five days before maturity, the company said.

Alibaba Health, of which Alibaba ( BABA ) holds a 64% stake, will remain a consolidated subsidiary after any exchanges, Alibaba ( BABA ) said.

Alibaba ( BABA ) also said proceeds from the offering will fund general corporate purposes, including investments in cloud and global commerce operations.

Shares of the company were down 2.6% in recent premarket activity.