Lenovo Group Successfully Issues $2 Billion in New Convertible Bonds

Lenovo Group (HKEX: 00992) has announced the completion of its new convertible bond issuance.

The company confirmed that all conditions under the bond subscription agreement have been satisfied, finalizing the issuance of $2 billion in new convertible bonds on June 25, 2026.

Approval has been granted for the listing and trading of the conversion shares on the Stock Exchange of Hong Kong.

The new convertible bonds are expected to be admitted for trading and listing on the Vienna MTF, operated by the Vienna Stock Exchange, on or around June 26, 2026.

Assuming full conversion of the new bonds at the initial conversion price, the estimated net proceeds from the bond offering, after deducting commissions and related expenses, are approximately $1.979 billion.

This net issue price translates to about HK$36.31 per conversion share at the initial conversion price.

Planned Use of Proceeds

Based on current information available to the board, the net proceeds are intended for the following purposes.

Approximately $1.2 billion, or about 60.64% of the net proceeds, is planned to refinance the group's existing debt, including funding a concurrent repurchase of about $662 million, which is expected to be fully utilized by January 27, 2028.

The remaining $779 million, representing about 39.36% of the net proceeds, is earmarked for future share repurchases to offset potential dilution from the bond issuance, as well as for general corporate purposes, including payments to suppliers and manufacturers and other operational and corporate expenses.

This portion is expected to be fully utilized by June 25, 2032, the sixth anniversary of the issuance date.

Concurrent Repurchase Completed

The company also reported that all conditions for the concurrent repurchase under the transaction management agreement have been met, and the repurchase was completed on June 25, 2026.

Following this completion, approximately $225 million in principal amount of the existing 2029 convertible bonds have been repurchased and will be cancelled.

The remaining outstanding principal amount of the existing 2029 convertible bonds is approximately $450 million.

The company may, from time to time, repurchase the remaining $450 million of the existing 2029 convertible bonds in the open market or through other means, in accordance with their terms and conditions.