Lenovo Group (00992) has completed the issuance of $2 billion convertible bonds.

Lenovo Group (00992) announced that all the prerequisites for the bond subscription agreement and the warrant subscription agreement have been met, and the bond issuance and warrant issuance were completed on January 8, 2025. On January 8, 2025, convertible bonds with a principal amount of $2 billion have been issued to investors by a wholly-owned subsidiary in accordance with the terms and conditions of the bond subscription agreement. As of the date of this announcement, the conversion price has been adjusted to HK$10.02 per share in accordance with the adjustment provisions of the bond subscription agreement and the terms and conditions of the convertible bonds. Assuming the convertible bonds are converted at the adjusted conversion price, the convertible bonds would be convertible (converted into HK dollars at a fixed exchange rate of HK$7.8115 to US$1) into 1.559 billion shares, representing: (i) approximately 12.57% of the total number of issued shares as of the date of this announcement; and (ii) approximately 11.17% of the total number of issued shares as of the date of conversion of the convertible bonds through the issuance of conversion shares (assuming no subsequent changes in the conversion price and total number of issued shares from the date of this announcement). On the same day, the company also entered into production and operation plan agreements and business development cooperation agreements as part of the planned strategic cooperation with the investors. Simultaneously with the issuance of the convertible bonds, in accordance with the terms and conditions of the warrant subscription agreement, all warrants (i.e. 1.15 billion warrants) have been fully subscribed and issued, with: (i) 655 million warrants (approximately 56.97% of the total warrants) allocated to at least six independent underwriters; (ii) 221 million warrants (approximately 19.27% of the total warrants) allocated to Wisdom Summit Limited, an investment holding by management participants; and (iii) 273 million warrants (approximately 23.76% of the total warrants) allocated to the initial warrant subscribers. The total proceeds from the bond issuance amount to $2 billion, while the total proceeds from the warrant issuance amount to HK$1.645 billion.