Philippine fast-food giant Jollibee Foods Corporation (JFC) has completed its issuance of $600-million guaranteed senior perpetual capital securities while listed lender BDO Unibank is selling its controlling stake in leasing arm BDO Leasing and Finance.
Jollibee completes $600m bond sale to refinance acquisition
Jollibee Foods Corporation has completed its dollar bond market debut with the issuance of $600-million guaranteed senior perpetual capital securities, according to its disclosure to the Philippine Stock Exchange.
The transaction represents the first-ever bond or perpetual securities issuance from Jollibee and the first time that the company has tapped the capital markets since its initial public offering in 1993. The issuance is one of the first by an Asian restaurant company.
Jollibee said proceeds from the offering are intended primarily to refinance the short-term debt from the acquisition of International Coffee and Tea, owner of American specialty coffee and tea brand The Coffee Bean & Tea Leaf. The Filipino company acquired 100 per cent of the US firm for $350 million, its biggest multinational acquisition so far.
Coffee Bean will be Jollibee’s second-largest business after the Jollibee brand while the coffee business will account for 14 per cent of the Philippine company’s worldwide system sales, Jollibee said.
BDO Unibank sells controlling stake in leasing arm
BDO Unibank, the largest bank in the Philippines, has agreed to sell a controlling stake in its publicly-listed subsidiary, BDO Leasing and Finance (BDOLF), to a third party for an undisclosed amount.
BDO did not provide details on the buyer but said that the deal is part of the restructuring of its leasing business. Financial details were also not disclosed.
The restructuring of BDO’s leasing business is being undertaken to “optimize the financial needs of clients in light of new accounting regulations covering lease transactions,” the bank disclosed.
IFRS 16, which took effect in January 2019, requires leases to be recognised on balance sheet, similar to a loan facility. BDO said this rule makes lease transactions a less attractive option to corporate borrowers compared to the past.
BDOLF will be re-named and its Articles of Incorporation and By-laws will be amended to reflect the new business direction.
