Emirates NBD Capital arranges $500 million Middle East revolving credit facility for Lenovo

Emirates NBD Capital, the investment banking arm of Emirates NBD, said it successfully arranged a $500 million Revolving Credit Facility (RCF) for Lenovo Group, which represented the China-US computer company's first entry into the Middle East Syndicate Loan Market.

"The credit agreement aligns with Lenovo's ongoing commitment to innovation in PC manufacturing and smartphone production, aimed at delivering cutting-edge technology solutions for businesses and consumers alike. The funds are earmarked for a range of corporate objectives, including general corporate purposes, working capital needs and other refinancing requirements," the company said in a statement.

"The facility will be instrumental for Lenovo as it strives to uphold and fortify its commanding position in the PC market in the Middle East and Africa, where it currently holds a market share of 29.1 per cent in unit, which is even more pronounced in the Arabian Gulf at 33.8 per cent."

The company added that the offering was met with "substantial" market interest, resulting in a demand that exceeded more than twice the initial launch amount of $300 million. "Fuelled by robust regional demand from 11 financial institutions spanning the UAE, Jordan, Kuwait and Bahrain, Lenovo decided to expand the facilities. After a considerable scale-back, the transaction concluded at a final size of $500 million."

Commenting on the announcement, Hitesh Asarpota, Chief Executive Officer, Emirates NBD Capital, said: “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, 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 led this landmark transaction and facilitated in our path to have a more diversified funding source.”