Asia Tech Wire (May 29) -- Chinese PC maker Lenovo Group Ltd (0992.HK) has announced plans to set up a new regional headquarters in Riyadh to serve the Middle East and Africa region.

Lenovo said in a statement early Wednesday morning that the company has entered into a strategic cooperation framework agreement with Alat, a wholly owned subsidiary of Saudi Arabia's Public Investment Fund (PIF).

Under the agreement, Lenovo will establish a new regional headquarters in Riyadh, Kingdom of Saudi Arabia, to serve the Middle East and Africa (MEA) region, which will include a customer center as well as a research and development center focusing on the region.

In conjunction with the new regional headquarters, the company will establish a new manufacturing facility in Saudi Arabia, which will initially focus on producing PCs and servers for the MEA region.

In addition, Lenovo has entered into an agreement to issue $2 billion in zero-coupon convertible bonds to Alat.