Alibaba unveils use of proceeds from $1b sustainability bond

Most of the net proceeds were used in constructing green data centres and buildings.

Alibaba Group had allocated proceeds from a $1b sustainability bond to support projects ranging from energy-efficient data centres to relief efforts to recycling programs, the company revealed in a press release.

The company gained net proceeds of about $986.9m from its dollar-denominated bond sale last year, of which $451m went to constructing energy-efficient data centres. Some $352m were used for erecting and refurbishing green buildings.

The rest of the proceeds were put towards COVID-19 relief efforts, including technical support, merchant relief and rural support programs; the purchase of solar and wind power; and recycling and waste management programs.

The company has engineered 1.9 million square meters in gross floor area of energy-efficient buildings with the funds, Alibaba said. It has purchased over 1 million MWh of renewable energy and installed more than 13,000 recycling stations and bins.

On Feb. 4 last year, the e-commerce platform issued an inaugural $1b sustainability bond, due 2041 and yielding 2.7%.