Lenovo Forges Saudi Pact With $2 Billion Convertible Bonds Issue

(Bloomberg) — Lenovo Group Ltd. plans to sell $2 billion worth of zero-coupon convertible bonds to Saudi Arabia’s sovereign wealth fund, part of a broader strategic pact with the tech-hungry kingdom.

Lenovo said it will issue bonds to Alat, an investment firm wholly-owned by the Public Investment Fund (PIF), at an initial conversion price of HK$10.42 ($1.33) per share. That’s a roughly 12% discount to Lenovo shares’ closing price the previous day, near a nine-year-high for the stock. Lenovo’s shares were down around 2% Wednesday.