Sources with inside knowledge of the situation have revealed that Alibaba intends to establish the conversion premium rate for its US$3.2 billion convertible bonds at 31.25%. The company has also cautioned investors that subscriptions made at a rate lower than this might not be successful. As of now, Alibaba has refrained from making any official statements regarding this issue. These particular convertible bonds are eligible for conversion into Alibaba's American Depositary Receipts. Around 80% of the proceeds from this bond issuance will be allocated towards bolstering cloud infrastructure. This includes initiatives such as the expansion of data centers, technological upgrades, and service optimization. The remaining 20% of the funds will be earmarked for the expansion of Alibaba's international business operations, reflecting the company's strategic focus on global growth.