Jollibee Foods Corporation (JFC) has made its dollar bond market debut with the offering of $600-million guaranteed senior perpetual capital securities. This was offered by Jollibee Worldwide Pte. Ltd. (JWPL), its wholly-owned subsidiary. This transaction was finished on January 23, 2020, and the proceeds went directly to the account of JWPL. Yesterday, the securities were planned to be listed at the Singapore Exchange Securities Trading Ltd. This was the first-ever bond or perpetual securities issuance from JFC. It was also the first time that JFC tapped the capital market since 1993 during its initial public offering. Here are the other parts of the news.
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The original plan of JFC was just to raise $400 million from its issuance of dollar-denominated bonds. But since it was oversubscribed 10 times, the amount was pushed to $600 million. The final pricing was tightened from 4.25% to 3.9%. JFC disclosed that this marks the lowest pricing for five-year perpetual security issued by a Philippines company that reflects solid demand for a JFC bond and the reputable credit standing of the company. The securities are unrated and payable semi-annually. There are no maturity dates for the securities as they are treated as perpetual bonds. This means that investors will not be able to redeem their investments but rather get a stable stream of payments for interest.
Jollibee Foods Corporation (JFC) said that it has plans to use the dollar bond market so it could issue senior perpetual securities. The proceeds from this issuance will then be used to pay for a portion of the acquisition of Coffee Bean & Tea Leaf (CBTL). JFC said on PSE that its subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) has tapped banks to manage and organize the issuance of bonds. Citigroup Global Markets Singapore Pte. Ltd. and J.P Morgan (S.E.A) Ltd. will be the joint global coordinators while the joint lead managers and joint bookrunners are Citigroup, Credit Suisse, Mizuho Securities, and J.P Morgan.
The proceeds will initially go to refinancing the short-term debt from the acquisition of International Coffee and Tea, LLC or the CBTL, which was completed on September 24, 2019. It will also go to the fund initiatives aligned with the JWPL’s general corporate purposes. JFC added that the securities will be attributed to as equity securities to strengthen the balance sheet of JFC while complying with the policy of prudent financial management.