Technology company Lenovo Group (00992) has announced its intention to issue new convertible bonds to institutional investors.

The terms of the proposed bond issuance, including its size, issue price, and other conditions, will be determined through a bookbuilding process. Once the terms are finalized, the company will enter into agreements with certain arrangers for the issuance.

This relates, in part, to the company's existing $675 million 2.50% convertible bonds due 2029, which were issued on August 26, 2022. Under the terms and conditions of these existing 2029 bonds, specifically condition 8(f) concerning purchases, the company or any of its subsidiaries may repurchase the bonds at any time and from time to time in the open market or through other means at any price.

Concurrently with the proposed new bond issue, the company intends to use the proceeds to repurchase part or all of the outstanding principal amount of the existing 2029 convertible bonds under the aforementioned terms.

On June 17, 2026, the company entered into an agreement with transaction arrangers, who have been appointed to assist in gathering indications of interest from existing holders of the 2029 bonds who are willing to sell their bonds to the company.

To ensure that the equity interests of all existing shareholders are not diluted, the company plans to conduct share buybacks on the market from time to time following the completion of the proposed bond issue and the concurrent repurchase, provided the scale of such buybacks does not trigger a mandatory general offer obligation under the Takeovers Code.

The company will seek shareholder approval at upcoming annual general meetings to grant the board a general mandate for share repurchases, facilitating this potential market buyback activity before the maturity date of the new convertible bonds.