Lenovo, based in Beijing, plans to build a research and development center in Riyadh and expand production capacity in the region.
mentioned Bloomberg Agency Lenovo plans to sell bonds convertible into shares worth $2 billion For the Public Investment Fund Saudi sovereign, to be the latest Chinese company to seek to raise financing by issuing such bonds within a few days.
The company set the initial conversion price of the bonds at 10.42 Hong Kong dollars per share, according to its disclosure on the stock exchange. Lenovo shares closed at 11.82 Hong Kong dollars yesterday, Tuesday.
The zero-yield bonds will be issued to Al Alat, an investment company backed by the Saudi Public Investment Fund, which has concluded a strategic deal with the personal computer manufacturer Lenovo.
Also Read: Kuwait is enhancing its refining capacity and moving towards organic fuels
The Beijing-based manufacturer of personal computers and artificial intelligence servers plans to build a research and development center in Riyadh and expand production capacity in the region.
The new shares, upon vesting, will represent approximately 12% of Lenovo’s existing capital, or approximately 11% of the company’s new capital after adding the shares converted from the bonds.
The computer maker said it proposed issuing three-year guaranteed bonds worth HK$1.15 billion, with an issue price of HK$1.43 to raise additional funds. This issuance will be under a specific authorization.
Alibaba Group Holding Ltd. last week sold $4.5 billion in convertible bonds, a record for dollar-denominated convertible bonds by an Asian company, with part of the proceeds used to buy back shares. This came just days after rival online retailer JD.com Inc sold a total of about $2 billion of these securities.
