BABA: Convertible Bond Boom Lifts Alibaba — But a $433M Settlement Still Casts a Shadow

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA is helping lead a surge in equity-linked bond issuance across Asia, tapping into red-hot demand for instruments that combine low interest costs with upside exposure to rising stock prices.

In 2025 so far, Alibaba has raised HK$12B (≈US$2B) in zero-coupon bonds convertible into shares of Alibaba Health, capitalizing on favorable rates and strong investor appetite amid stalled Fed cuts and resurging Chinese equity markets.

📈 Asia’s five largest deals — including those by Alibaba, Baidu, and Ping An — paid zero interest, reflecting investor confidence in near-term equity upside and the defensive appeal of hybrid securities.

💬 “Market conditions have never been healthier,” said JPMorgan’s Gautam Sareen.

🧩 For Alibaba, this funding method not only reduces cost of capital, but also strengthens liquidity as it doubles down on AI, ESG, and platform growth. Yet legal overhangs remain.

While markets rally, Alibaba is still navigating its investor class action tied to the collapse of Ant Group’s IPO in 2020 and subsequent regulatory fallout.

• Nov 3, 2020: Ant IPO suspended; BABA drops 8%.
• Dec 24, 2020: SAMR antitrust probe triggers 13% single-day plunge.
• Apr 2022: Shareholders sue for failure to disclose risks.

• Eligible holders: Owned BABA between Dec 23, 2020 – Mar 26, 2025
• Late claims still being accepted, subject to court approval
• Payouts usually issued 8–12 months post-final approval

👉 You can check more information about it and file for a payout HERE.

With convertible issuance booming and equity markets rebounding, BABA may be unlocking capital at the perfect time — but past missteps still require closure.