Lenovo Completes US$1.25 Billion Bond Offering, with Inaugural Tranche of Green Bonds Supporting Vision to Achieve Net-Zero by 2050
July 28, 2022 – Lenovo Group (HKSE: 992) (ADR: LNVGY) today announced that it has successfully completed its inaugural issuance of greenbacks (“Green Bonds”) in a $1.25 billion two-tranche bond offering. dollars US Rule 144A / Regulation S. The US$625 million 5.5-year senior unsecured notes and US$625 million 10-year senior unsecured green notes were valued at a rate coupon rates of 5.831% per annum and 6.536% per annum, respectively.
The two-tranche bond offering was well received by a diverse group of conventional and green investors. 5.5-year bonds were widely distributed, with a geographic distribution of 30% US, 29% EMEA and 41% APAC. Green bonds received strong demand from green investors around the world, who made up around half of the final allocation, with a geographic spread of 40% US, 28% EMEA and 32% APAC, diversifying further Lenovo’s investor base.
Tech industry’s largest first environmental, social and governance (“ESG”) bond to date in 2022the first green bond offering marks an important milestone in Lenovo’s ESG journey and supports its vision to reach Net-Zero by 2050. This is a key development as the company continues to pursue its goals and ambitions on climate and sustainability, enabling the company to fund projects and initiatives that support its ESG commitments and build a smarter, more sustainable future for all.
An amount equivalent to the net proceeds of 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 the other proceeds raised will fund the Company’s concurrent tender offer for its notes due 2023 and will be used for working capital purposes. Eligible projects, as outlined in the Green Finance Framework, fall into five green categories including: Energy Efficiency, Renewable Energy, Green Buildings, Circular Economy Products, Production and Processes , and clean transport.
“At Lenovo, we believe that business success and building a sustainable future should go hand in hand,” said Wong Wai Ming, CFO of Lenovo. “We are delighted with the overwhelming support from investors around the world, the success of our landmark two-tranche and inaugural green bond offering is all the more exceptional in the volatile market environment. Establishing our green financing framework is an important milestone, reflects our broader commitment to sustainability as we embrace green financing, and further demonstrates our unwavering commitment to having a positive environmental and social impact, so that we can build a more resilient and brighter future for everything.”
John Cerretani, Vice President, Associate General Counsel and Chief Corporate Responsibility Officer, Lenovo, added, “As a global company, Lenovo’s ESG initiatives are focused on supporting a resilient path while creating long-term value for our stakeholders, and this offering exemplifies our ongoing 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) LLC, HSBC, JP Morgan and Morgan Stanley. BNP PARIBAS was Green Structuring Advisor.
Lenovo ESG Commitments
Lenovo has a proven track record and clear ESG aspirations. After exceeding its 2020 emissions reduction targets a year ahead of schedule, Lenovo has committed to achieving net zero by 2050 and is working with the Science Based Target Initiative set goals that support this vision. Lenovo has reported on sustainability topics since 2008, including describing its work and goals around climate change mitigation, circular economy, and sustainable materials. Lenovo has been recognized by the following organizations for its ESG efforts:
Lenovo plans to release its FY2021/22 Environmental, Social and Governance Report in August 2022.
Lenovo (HKSE: 992) (ADR: LNVGY) is a US$70 billion global technology powerhouse, ranked #159 on the Fortune Global 500, employing 75,000 people worldwide and serving millions of customers every day across more of 180 markets. Focused on a bold vision to deliver smarter technology for everyone, Lenovo has built on its success as a global PC leader by expanding into new growth areas of infrastructure, mobile, solutions and services. This transformation, coupled with Lenovo’s breakthrough innovation, is building a more inclusive, trusted, and sustainable digital society for everyone, everywhere. To find out more visit https://www.lenovo.comand discover the latest news via our StoryHub.
 Source: Dealogic, Asia excluding Japan, jumbo deals over $1bn (equivalent).