Lenovo Closes Successful Debut 144A US$1 Billion Senior Unsecured Notes Offering

HONG KONG, October 30, 2020 – Lenovo Group (HKSE: 992) (ADR: LNVGY) announced the successful completion of a debut 144A/Reg S offering of US$1 billion 10-year senior unsecured notes at a coupon rate of 3.421% per annum.

This landmark transaction marks multiple milestones for Lenovo:

  • An inaugural offering under Rule 144A diversifying the investor base
  • A tenor of 10 years optimizing the capital structure
  • A concurrent tender offer to repurchase outstanding securities reducing the cost of financing
  • A rated format: Baa3/BBB-/BBB- by Moody’s, Standard & Poor’s, and Fitch

The issuance saw a significant interest from fixed-income investors across the world, reflecting investors’ confidence in Lenovo’s performance and outlook. The investor allocation was spread globally with 39% from US; 31% EMEA, and 30% Asia, further enhancing Lenovo’s global investor base. The order book was heavily oversubscribed by a factor of about 5 times.

The proceeds of the bonds are used to repurchase outstanding perpetual securities, as well as unsecured notes due in 2022 and 2023, and for working capital purposes.

The Joint Global Coordinators are: Citigroup, Morgan Stanley, Credit Suisse, J.P.Morgan, BNP Paribas and Goldman Sachs.

Commenting on the issuance, Lenovo CFO Waiming Wong, said: “We are pleased with the successful transaction of our debut 144A notes offering in a rated format against the volatile market backdrop. Together with our recent inaugural investment-grade issuer ratings from Moody’s, Standard & Poor’s and Fitch, this is a recognition of our strong sustainable long-term business and a significant milestone for Lenovo’s optimization of capital structure.”

 About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$50 billion Fortune Global 500 company, with 63,000 employees and operating in 180 markets around the world.  Focused on a bold vision to deliver smarter technology for all, we are developing world-changing technologies that create a more inclusive, trustworthy and sustainable digital society. By designing, engineering and building the world’s most complete portfolio of smart devices and infrastructure, we are also leading an Intelligent Transformation – to create better experiences and opportunities for millions of customers around the world. To find out more visit https://www.lenovo.com, follow us on LinkedInFacebookTwitterYouTube, InstagramWeibo and read about the latest news via our StoryHub.

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