Lenovo completes US$1.25 billion bond offering, with inaugural green bonds tranche supporting vision to achieve Net-Zero by 2050

28 July 2022 – Lenovo Group (HKSE: 992) (ADR: LNVGY) today announced that it has successfully completed its inaugural offering of green notes (“Green Bonds”) as part of a US$1.25 billion dual-tranche Rule 144A / Regulation S bond offering. The 5.5-year US$625 million senior unsecured notes and the 10-year US$625 million senior unsecured green notes were priced at a coupon rate of 5.831% per annum and 6.536% per annum, respectively.

The dual-tranche bond offering was well-received by a diverse group of both conventional and green investors. The 5.5-year bonds were widely distributed, with a geographical split of 30% US, 29% EMEA, and 41% APAC. The Green Bonds received strong demand from green investors globally, which represented roughly half of the final allocation, with a geographical split of 40% US, 28% EMEA, and 32% APAC, further diversifying Lenovo’s investor base.

The largest debut technology sector Environmental, Social, and Governance (“ESG”) bond globally so far in 2022[1], the debut green bond offering marks an important milestone in Lenovo’s ESG journey and supports its vision to achieve Net-Zero by 2050.  This is a key development as the Company continues to drive its integrated climate and sustainability objectives and ambitions, enabling the company to finance projects and initiatives that support its ESG commitments, and build a smarter and more sustainable future for all.

An amount equivalent to the net proceeds from the Green Bonds will be used to finance or refinance the Company’s new or existing eligible projects in accordance with the green finance framework (“Green Finance Framework”), while other proceeds raised will fund the Company’s concurrent tender offer for its notes due 2023 and will be used for working capital purposes. The eligible projects as outlined in the Green Finance Framework are across five green categories, including: energy efficiency, renewable energy, green buildings, circular economy adapted products, production and processes, and clean transportation.

“At Lenovo, we believe business success and building a sustainable future must go hand in hand,” said Wong Wai Ming, Chief Financial Officer of Lenovo. “We are pleased with the overwhelming support from investors around the world, the success of our landmark dual-tranche and inaugural Green Bonds offering is all the more exceptional against the volatile market backdrop. Establishment of our Green Finance Framework is an important milestone, reflects our broader commitment to sustainability as we embrace green financing, and further demonstrates our unwavering commitment to making a positive environmental and social impact, so that we can build a more resilient and brighter future for all.”

John Cerretani, Vice President, Deputy General Counsel and Chief Corporate Responsibility Officer of Lenovo, added, “As a global company, Lenovo’s ESG initiatives focus on supporting a resilient way forward while creating long-term value for our stakeholders, and this offering exemplifies our continuous ESG efforts across the organization.”

 The Joint Global Coordinators and Joint Bookrunners for the bond offering are: BNP PARIBAS, Citigroup, Credit Suisse, DBS Bank Ltd., Goldman Sachs (Asia) L.L.C., HSBC, J.P. Morgan and Morgan Stanley. BNP PARIBAS was Green Structuring Advisor.

Lenovo ESG Commitments

Lenovo has a proven track record and clear aspirations in ESG. After exceeding its 2020 emissions reduction goals a year ahead of schedule, Lenovo has committed to a vision to achieve net-zero by 2050 and is working with the Science Based Target initiative to establish goals that support this vision. Lenovo has reported on sustainability topics since 2008, including outlining its work and goals around climate change mitigation, the circular economy, and sustainable materials. Lenovo has been recognized by the following organizations for its ESG efforts:

Lenovo expects to publish its FY2021/22 Environmental, Social and Governance Report in August 2022.

 About Lenovo

Lenovo (HKSE: 992) (ADR: LNVGY) is a US$70 billion revenue global technology powerhouse, ranked #159 in the Fortune Global 500, employing 75,000 people around the world, and serving millions of customers every day in more than 180 markets. Focused on a bold vision to deliver smarter technology for all, Lenovo has built on its success as the world’s leading PC player by expanding into new growth areas of infrastructure, mobile, solutions and services. This transformation together with Lenovo’s world-changing innovation is building a more inclusive, trustworthy, and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.com, and read about the latest news via our StoryHub.

[1]  Source: Dealogic, Asia excluding Japan, jumbo deals in excess of US$1bn (equivalent).

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