SINGAPORE (Reuters) – Lenovo Group Ltd (0992.HK ), the world’s top PC vendor, has no plans to issue bonds in the near term due to global market volatility and has sufficient cash in hand, its chief financial officer said.
Lenovo, which has been acquiring companies over the past few years to consolidate its market position, conducted roadshows in Hong Kong, Singapore and London in June, prompting expectations it would soon tap the market for its first U.S-dollar-denominated note issue.
“The debt market was actually in a turmoil probably a couple of weeks ago,” CFO Wong Wai Ming told Reuters in a telephone interview.
“So we are still observing the market, so when the market becomes stable, then we will decide on how to deal with this proposed bond issue. Obviously we are not in desperate need of cash in the short term.”
The company is cash-rich, with free cash flow around $1.6 billion at the end of 2012, but it would still need to raise funds for any large acquisition.
Lenovo has hired Credit Suisse (CSGN.VX ) and Goldman Sachs (GS.N ) as the joint global coordinators for the issue, Thomson Reuters publication IFR said.
IFR added that joint lead managers and bookrunners included BNP Paribas (BNPP.PA ), BOC International, HSBC (HSBA.L ) (0005.HK ), Mizuho Securities (8411.T ), The Royal Bank of Scotland (RBS.L ) and Standard Chartered (STAN.L ).
(Reporting by Lee Chyen Yee- Editing by Edwina Gibbs)
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