Jollibee Foods Corporation said investors have snapped up its offer of five-year notes with a “final order book exceeding $2 billion, an oversubscription rate of 6.7X.”
The fast food company said it has priced its $300 million five-year “senior unsecured guaranteed notes” at a coupon rate of 5.332 percent.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Jollibee said, “This underscored the robust participation from high-quality international accounts alongside strong domestic support.”
“The notes offering is expected to be settled on or about April 2, 2025, subject to the satisfaction of customary closing conditions,” the company disclosure said.
The notes, a Regulation S issuance, will be issued through Jollibee Worldwide Pte. Ltd. and the coupon will be paid semi-annually, the company said.
Regulation S refers to rules governing offers and sales of securities made outside the United States without registration under the Securities Act of 1933. Regulation S notes are securities sold in offshore transactions, relying on Regulation S of the US Securities Act.
The Jollibee notes offering marks the food company’s return to the dollar primary bond market since 2020, when it issued guaranteed perpetual notes to finance its acquisition of the Coffee Bean and Tea Leaf (CBTL) business.
This year, Jollibee became the first Philippine corporate issuer to access the international bond market.
Jollibee said this is a testament to investor confidence in the company’s “compelling credit story and global market appeal.”
“The significant investor demand played a key role in allowing Jollibee to tighten 35 basis points (bps) from the initial price guidance, eventually landing at a spread of 125 bps over the 5-year US Treasury,” it said.
Jollibee mandated JP Morgan Securities Asia Private Limited (JP Morgan), Morgan Stanley Asia (Singapore) Pte. (Morgan Stanley), BPI Capital Corp., The Hong Kong and Shanghai Banking Corporation Limited, and Singapore Branch (HSBC) to facilitate the fundraising.
On Tuesday, Jollibee Chief Finance Officer Richard Shin told reporters that the debt issue would allow the company to convert the perpetual debt to senior bonds, which would be “more cost-effective.”
