Jollibee seeks offshore debt for global expansion plans

Jollibee Foods Corp. (JFC), a major fast-food chain from the Philippines, plans to raise money in the overseas debt market. This is part of its strategy to expand its store network globally. In a recent announcement, JFC stated that its subsidiary, Jollibee Worldwide Pte. Ltd., is working with several banks to offer bonds. These bonds will be in US dollars and have a five-year term. The bonds JFC plans to issue are known as Regulation S notes, which means they will be sold outside the United States. The company will issue senior unsecured notes, which are not backed by specific assets in case of default. However, there will be guarantees in place to ensure repayment if needed. JP Morgan Securities Asia and Morgan Stanley Asia are the main coordinators for this bond offer. They will work with BPI Capital Corp. and The Hongkong and Shanghai Banking Corp. to lead the effort. These banks will start a series of meetings with potential investors. JFC's move comes as the company announced plans to invest around 21 billion pesos this year to open up to 800 new stores. With this expansion, JFC aims to surpass 10,000 locations worldwide.