People familiar with the matter revealed that Lenovo Group Co., Ltd. is seeking a loan of 2 billion US dollars, and the interest rate is superior to the original loan it plans to replace. Transactions in the Asian loan market are weak, and banks are still willing to lend credit to leading Chinese companies. Syndicated distribution has already started for this five-year loan, and the interest rate for guaranteed overnight financing increased by 75 basis points. This pricing was drastically narrowed compared to a loan of the same size in 2022; the loan that year saw an increase of 110 basis points in SOFR plus a credit adjustment spread. This difference stemmed from the switch of the benchmark interest rate from the London Interbank Loan Rate to SOFR.

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