China’s Lenovo issues $2bn bonds to repay Saudi Alat debt

China’s Lenovo issues $2bn bonds to repay Saudi Alat debt

China’s Lenovo Group has issued $2 billion in convertible bonds to Alat, a Public Investment Fund (PIF)-backed technology manufacturing company, to repay its existing debt and boost working capital. As part of the agreement, the Hong Kong-headquartered personal computer maker will open a new PC and server manufacturing facility and establish its Middle East and Africa […]China’s Lenovo Group has issued $2 billion in convertible bonds to Alat, a Public Investment Fund (PIF)-backed technology manufacturing company, to repay its existing debt and boost working capital.

As part of the agreement, the Hong Kong-headquartered personal computer maker will open a new PC and server manufacturing facility and establish its Middle East and Africa (MEA) headquarters in Saudi Arabia.

The new facility will enable Lenovo to expand its global supply chain and serve customers in the MEA region.

The initial conversion price of the convertible bonds has been set at HK$10.42 per share. The bonds will be converted to nearly 1.50 billion shares after three years.

The MEA’s IT and business services market size is expected to reach $38 billion by 2027, according to IDC, a global consultancy firm.

Lenovo plans to build a tech and manufacturing hub in Saudi Arabia, which Alat will benefit from, said chairman and