Jollibee is tapping the overseas debt market to fund its aggressive global expansion program.
MANILA, Philippines – Homegrown fast-food giant Jollibee Foods Corp. (JFC) is set to tap the overseas debt market to raise funds amid plans to expand its store network across the globe.
In a stock exchange filing on Monday, JFC said its wholly owned subsidiary, Jollibee Worldwide Pte. Ltd., had tapped several banks for a potential Regulation S dollar-denominated bond offer. The issuance will have a tenor of five years.
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Regulation S notes refer to debt securities offered and sold outside the United States. JFC’s offer will also consist of senior unsecured notes, meaning these will not be backed by a specific collateral in case the company defaults.
The notes, however, are guaranteed, entailing that the guarantor promises to repay the loan should JFC default.
JP Morgan Securities Asia Private Ltd. and Morgan Stanley Asia (Singapore) Pte. will be the joint global coordinators and joint bookrunners. BPI Capital Corp. and The Hongkong and Shanghai Banking Corp. Ltd., Singapore will be the joint lead managers and bookrunners.
According to JFC, these banks will arrange a series of fixed-income investor meetings beginning on Monday.
This comes after JFC unveiled plans to spend P21 billion this year to open as many as 800 stores, which would zoom its network past the 10,000-store mark.