Lenovo issues debut CB as debt repayment looms

The Chinese technology giant has raised $675 million from its first hybrid securities issue. This might just reduce Lenovo's leverage.

Lenovo made its debut in Asia’s equity-linked market on Tuesday as the Chinese technology giant raised $675 million from a convertible bond issue to repay a massive US dollar debt due in four months.

The world’s largest personal computer maker tapped the hybrid security at a time when its gearing ratio hit its highest level since it went public in 1999. Its net debt-to-equity ratio reached 43% as of the end of March last year, up significantly from 4% a year earlier.

Through the years Lenovo has never raised any equity because the company was in a net cash position every year until the 201415 financial...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222