Do you want to Make Money and Grow Money?

YES, I want it!


By: Marvin Germo | January 25, 2020

Dollar Bond Market Debut

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.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.

Stock Smarts Taiwan – February 15, 2020
Stock Smarts Manila: March 14, 15, 21, 22 & 28, 2020
Stock Smarts Singapore: May 16 – 17, 2020
Stock Smarts New Zealand: June 6 – 7, 2020
Stock Smarts Sydney: July 11 – 12, 2020
Stock Smarts London: April 18 – 19, 2020

Plan To Offer $400 million

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.

Partial Payment For Acquisition

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.

Use Of Proceeds

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.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders