Lenovo to Raise $2 Billion in Convertible Bonds, Plans Buyback

By P.R. Venkat

Lenovo Group, the world's largest personal-computer maker, plans to raise US$2 billion through a convertible-bond offering, proceeds of which will be used to repurchase existing debt and buy back shares.

The company's proposed zero-coupon convertible bonds due in 2033 and can be exchanged for 426.877 million shares at an initial conversion price of 36.70 Hong Kong dollars, equivalent to US$4.68 a share, Lenovo said Thursday.

The initial conversion price represents a 47.5% premium over the last closing price of HK$24.88 a share.

Part of the proceeds will be used to repurchase the company's US$675 million convertible bond due in 2029, which carries a 2.50% coupon. The remaining proceeds will be used for on-market share repurchases and general corporate purposes, Lenovo said.

Lenovo said the transactions would extend its debt maturities, reduce funding costs and help limit near-term dilution to existing shareholders.

J.P. Morgan, HSBC and BNP Paribas are among the banks advising Lenovo on the bond sale.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

June 17, 2026 20:12 ET (00:12 GMT)