Emirates NBD Capital, the investment banking division of Emirates NBD, has announced the successful arrangement of a $500 million Revolving Credit Facility (RCF) for Lenovo Group, marking the computer company’s debut in the Middle East Syndicate Loan Market.
In a statement, Lenovo emphasized that the credit agreement reflects its ongoing commitment to innovation in PC manufacturing and smartphone production, aiming to provide advanced technology solutions for both businesses and consumers. The funds secured through this facility will support various corporate objectives, including general corporate purposes, working capital needs, and other refinancing requirements.
Highlighting the significance of this financing, Lenovo stated, “The facility will be instrumental for Lenovo as it seeks to maintain and strengthen its leading position in the PC market across the Middle East and Africa. Currently commanding a market share of 29.1 percent in unit sales, Lenovo’s presence is particularly dominant in the Arabian Gulf, with a market share of 33.8 percent.”
The offering garnered significant market interest, with demand exceeding twice the initial launch amount of $300 million. Lenovo expanded the facilities to accommodate this robust regional demand from 11 financial institutions across the UAE, Jordan, Kuwait, and Bahrain. Following a considerable scale-back, the transaction concluded at a final size of $500 million.
Hitesh Asarpota, CEO of Emirates NBD Capital, commented, “We are proud to have played a pivotal role in facilitating Lenovo’s inaugural venture into the Middle East syndicated loan markets. This landmark transaction also underscores our strategy to be the go-to bank for international issuers looking to access regional liquidity.”
Hugh Wu, Vice President and Treasurer at Lenovo, added, “This inaugural transaction in the Middle East demonstrates Lenovo’s strength as a major well-diversified IT vendor in attracting global capital. We are pleased to have Emirates NBD Capital lead this landmark transaction and facilitate our path to a more diversified funding source.”