Lenovo Group plans to issue $2 billion in convertible bonds and also plans to buy back.

The world's largest personal computer manufacturer Lenovo Group plans to raise $2 billion by issuing convertible bonds, with the proceeds to be used for repurchasing existing debt and shares. Lenovo Group said on Thursday that the zero-coupon convertible bonds due in 2033 that the company plans to issue can be converted into 4.26877 billion shares at a preliminary conversion price of HK$36.70 per share, representing a 47.5% premium over the latest closing price of HK$24.88 per share. Some of the proceeds will be used to repurchase $675 million of the company's 2.50% convertible bonds due in 2029. The remaining proceeds will be used to repurchase shares in the market and for general corporate purposes. Lenovo Group said that these transactions will extend the maturity of its debt, lower financing costs, and help limit the dilutive impact on existing shareholders in the near term. The banks providing advice for Lenovo Group's bond issuance include JPMorgan, HSBC, and BNP Paribas.