Clifford Chance

Clifford Chance advises on Lenovo Group's innovative dual-tranche financing

Leading international law firm Clifford Chance advised the joint lead managers (Australia and New Zealand Banking Group Limited, Bank of Communications Co., Ltd. Hong Kong Branch, Barclays Bank PLC, BNP Paribas, China Construction Bank (Asia) Corporation Limited, Citigroup Global Markets Limited, Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd., Merrill Lynch International, Mizuho Securities Asia Limited, Morgan Stanley & Co. International plc, MUFG Securities EMEA plc, Société Générale and Standard Chartered Bank) on two simultaneous issuances by Lenovo Group Limited.

The issuance involved both a senior tranche of US$500 million 3.875% medium term notes due 2022 under its US$3 billion medium term note programme, which Clifford Chance advised the arranger and dealers on in 2016, and a subordinated tranche of US$850 million 5.375% perpetual securities in the form of cumulative preferred shares, with a performance guarantee from Lenovo Group Limited. The two tranches of securities were issued simultaneously.  

Partner Matt Fairclough said, "We were delighted to be involved in bringing this innovative transaction to the market here in Asia Pacific, highlighting Clifford Chance's role as a market leader for hybrid securities transactions in the region and globally. Using a preferred share structure with a performance guarantee to maintain the integrity of the SPV and the structure was certainly a new development for the market and led to a very successful transaction for the parties involved."

The team was led by Matt who was supported by senior associates Mark Chan and Michael Weaver and associate Nathan Wong.