Lenovo in $1.25 Billion Dual-Tranche Offering and Concurrent Liability Management Transaction

Cleary Gottlieb represented Lenovo Group Limited (Lenovo) in a dual-tranche Rule 144A/Reg S offering comprising of $625 million 6.536% green notes due 2032, $625 million 5.831% Series B notes due 2028, and a concurrent tender offer for its 2023 notes, the largest debut technology sector Environmental, Social, and Governance bond globally in 2022 so far.

The transaction is Lenovo’s inaugural green bond offering in the international capital markets and further diversifies its investor base. Lenovo intends to use the proceeds from the green notes to finance or refinance its new or existing projects such as green buildings and renewable energy projects in accordance with Lenovo’s green finance framework.

The proceeds of the Series B notes were used to fund the tender offer and for working capital purposes.

The transactions closed on July 27, 2022, and the notes were listed on The Stock Exchange of Hong Kong Limited.

Lenovo is the world’s largest PC vendor and holds the No. 1 position in the global PC market across both commercial and consumer segments. The company was founded in China in 1984, and its common shares are listed on The Stock Exchange of Hong Kong. Lenovo expanded its business and operations to a global scale through the acquisition of IBM’s PC division in 2005. In 2014, Lenovo acquired Motorola Mobility and IBM’s x86 server hardware and related maintenance services business. Focused on a bold vision to deliver smarter technology for all, Lenovo is undergoing an “Intelligent Transformation” by designing, engineering, and building the world’s most complete portfolio of smart devices and infrastructure.