Chinese technology giant Alibaba Group is seeking to raise approximately HK$12 billion (US$1.53 billion) through the issuance of exchangeable bonds, the company announced on Thursday.

The move is aimed at bolstering Alibaba’s investments in cloud infrastructure and its expanding global commerce operations.

The bonds will be exchangeable for shares in Alibaba Health Technology, a Hong Kong-listed subsidiary in which Alibaba holds a 44% stake. Notably, the bonds will carry zero interest, allowing investors to convert them into Alibaba Health shares at a later date instead of receiving regular coupon payments.

This latest fundraising effort comes on the heels of Alibaba’s US$5 billion dual-currency bond offering in November, the largest deal of its kind in the Asia-Pacific region in 2024.

The timing of Thursday’s bond sale reflects growing investor interest in Asian credit markets, buoyed by recent monetary and fiscal stimulus measures introduced by Chinese policymakers to revive the economy.

Despite the announcement, Alibaba Group’s shares fell 2.9% to close at HK$106.20 in Hong Kong trading, while shares of Alibaba Health ended the day down 2.8%.

The capital raise underscores Alibaba’s ongoing focus on strengthening its strategic growth areas, particularly as the company navigates increased competition and regulatory scrutiny in China’s evolving tech landscape.