Jollibee tops up $300-M from dollar notes

Jollibee Foods Corp. (JFC) stands to raise up to $300 million from its comeback in the U.S. dollar bond market.

In a stock exchange disclosure on Wednesday, the homegrown fast-food giant said the five-year senior unsecured guaranteed notes, issued by its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL), carry a fixed coupon of 5.332 percent, payable semi-annually.

The unrated notes, its first since 2020, will be listed on the Singapore Exchange Securities Trading Limited, opening up access to global investors.

“The significant investor demand played a key role in allowing JFC to tighten 35 basis points from initial price guidance, eventually landing at a spread of 125 basis points over the five-year U.S. Treasury,” the company said.

The offering generated overwhelming interest, with total orders surpassing $2 billion — an oversubscription rate of approximately seven times.

The company said proceeds from the offering will be used for “general corporate purposes and/or refinancing of JWPL’s existing borrowings.”

The transaction is expected to settle on or about April 2, subject to customary closing conditions.

JFC said that the robust demand from both international and domestic investors is a testament to confidence in its “compelling credit story and global market appeal.”

The company is the first local corporate issuer to tap the international bond market this year, setting the stage for other local firms to follow.