Emirates NBD Capital (EmCap), the investment banking for Emirates NBD Group, on Monday, facilitated a $500 million syndicated revolving credit facility (RCF) for computer maker Lenovo Group Limited.
A Syndicated Revolving Credit Facility (RCF) is a type of loan provided by a group of lenders, in this case, it includes EmCap, AL Ahli Bank of Kuwait, Mashreqbank, Abu Dhabi Commercial Bank, Gulf Bank, and more, allowing Lenovo to withdraw, repay, and redraw funds as needed within an agreed-upon limit and timeframe.
The firm said the credit facility represents the ThinkPad maker’s entry into the Middle East syndicated loan market with an aim to support the technology leader’s corporate and operational financing needs.
The funds will be utilized for a range of corporate objectives, including general corporate purposes, working capital needs, and other refinancing requirements. Initially, the offering garnered significant market interest, with demand surpassing twice the initial launch amount of $300 million.
“This inaugural transaction in the Middle East demonstrates Lenovo’s strength as a major well-diversified IT vendor in attracting global capital, said Hugh WU, Vice President of Lenovo and added, “We are pleased to have Emirates NBD Capital led this landmark transaction and facilitated in our path to have a more diversified funding source.”
“This landmark transaction also underscores our strategy to be the go-to bank for international issuers looking to access regional liquidity,” said Hitesh Asarpota, Chief Executive Officer at Emirates NBD Capital.
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