Changes in Hong Kong stocks | Alibaba Health (00241) opened nearly 5% lower and Alibaba issued HK$12 billion zero-interest convertible bonds in exchange for Alibaba Health shares

The Zhitong Finance App learned that Ali Health (00241) opened nearly 5% lower. As of press release, it fell 4.87% to HK$4.3, with a turnover of HK$41.426,200.

According to the news, on July 3, Alibaba issued an announcement stating that the total principal amount of HK$12 billion and zero-interest exchangeable bonds due in 2032 has been completed, and that the net capital raised from the bond issuance will be used to invest in cloud computing infrastructure construction and support the development of international e-commerce business. The bonds will be exchanged with reference to Alibaba Health Co., Ltd., a subsidiary holding approximately 64% of its shares. The initial exchange ratio is that every HK$1 million can be exchanged for 160,500 Alibaba Health shares, which is equivalent to an initial exchange price of HK$6.23 per share, a 48% premium over the offshore placement price of HK$4.21.

The bond issuance is expected to be completed on July 9, 2025, subject to customary delivery conditions. Once the bonds are issued, the bonds will constitute Alibaba Group's unsecured and non-subordinated liabilities. Bonds do not accrue regular interest. The bonds will expire on July 9, 2032, unless pre-redeemed, repurchased or exchanged prior to that date in accordance with the terms of the bonds.