By Alexandria Grace C. Magno
JOLLIBEE FOODS Corp. (JFC) will redeem its $300-million guaranteed senior capital securities on Jan. 24, 2026, through its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL).
The securities, originally issued on June 24, 2020, under the $300-million Guaranteed Senior Capital Offering Circular, will probably be canceled and subsequently delisted from the Singapore Exchange Securities Trading Limited upon redemption, the corporate said in a disclosure to the stock exchange on Monday.
JFC said the Global Certificate representing the securities have to be presented or surrendered by Euroclear and/or Clearstream, Luxembourg, to the trustee and/or the paying agent.
SIMPLIFYING AND OPTIMIZING CAPITAL STRUCTURE
In accordance with Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., the redemption is aimed toward simplifying and de-risking Jollibee’s capital structure, making the most of the corporate’s improved operating performance and access to funding.
“These perpetual instruments were originally useful in providing balance-sheet support during expansion phases, but they typically carry higher effective funding costs and add complexity to leverage metrics,” he said in a Viber message.
“By redeeming them now — after successfully raising latest, more competitively priced senior debt earlier this yr — Jollibee is making the most of improved market conditions and investor confidence to streamline its liabilities,” he added.
Mr. Arce noted that the move reflects management’s confidence in the corporate’s money flow and balance sheet strength.
“It is a combination of cost optimization and capital-structure cleanup moderately than a defensive maneuver. Retiring perpetual securities reduces long-term financing costs, improves transparency within the capital stack, and enhances financial flexibility ahead of further expansion or refinancing needs. While not a strategic reset by way of business direction, it’s a strategic financial housekeeping step that reinforces Jollibee’s positioning as a more mature, globally scaled consumer company with a cleaner and more efficient balance sheet,” he said.
Similarly, Shawn Ray R. Atienza, equity research analyst at AP Securities, Inc., said the redemption shows that JFC has sufficient internal money flow and visibility into future inflows to streamline its balance sheet without issuing latest hybrid securities.
“The move should primarily be viewed as a cost-optimization decision, specifically aimed toward lowering interest expenses over the foreseeable future, with capital-structure simplification emerging as a secondary but favorable end result,” he added.
In March, JFC announced plans to boost at the least $300 million through a five-year, US dollar-denominated senior unsecured guaranteed notes issuance under Regulation S to refinance debt. Regulation S issuances are securities offered outside america that aren’t registered under the US Securities Act or any US state securities laws.
On Monday, JFC shares rose 2.64%, or P4.80, to P186.80 apiece.