FASTFOOD giant Jollibee Foods Corp. (JFC) is set to raise $600 million from the issuance of US dollar-denominated senior guaranteed perpetual capital securities — its first to tap the capital markets since going public in 1993.
In a disclosure on Friday, the company said it was finally pursuing a fund-raising activity in the capital market, stressing it has decided to upsize the offering from the initial target of $400 million amid strong demand witnessed from investors.
Final pricing was also set at 3.9 percent, non-call and payable semi-annually, from the original price guidance of 4.25 percent, it added.
According to JFC, the securities are unrated and will be listed on the Singapore Exchange Securities Trading Ltd.
The proceeds would help refinance its short-term debt from the purchase of International Coffee and Tea, LLC (The Coffee Bean & Tea Leaf) and general corporate matters.
It can be recalled that in September, JFC completed the $350-million buyout of The Coffee Bean & Tea Leaf, making it the first homegrown firm to make a bold move in the global coffee retailing market.
As it targets to snatch a spot in the top five restaurants in the world, JFC was expecting the multi-million deal to boost its global system-wide sales, total store network, worldwide sales contribution by 14 percent, 26 percent and 36 percent, respectively.
“The objective of management for this issuance is to further strengthen the balance sheet of JFC to build a stronger foundation for accelerating its growth,” it said.
JFC’s net income in January to Septmber 2019 dipped by 25.5 percent to P4.53 billion from P6.09 billion in the same period in 2018 due to losses from Smashburger and Red Ribbon.
Shares of JFC surged by 6.27 percent or P12.60 to close at P213.60 on Friday.