Jollibee: to borrow 100 million USD for China expansion

Manila / PH. (jfc) Jollibee Foods Corporation, the Philippines´ largest fast food group, said it was raising 100 million USD worth of Chinese Renminbi Yuan (CNY) loans from various local lenders to fund its expansion in China. The group, which is expanding aggressively overseas while continuing to outsell US-American chains in its home market, operates two fast food brands in China – Yonghe King and tea house Chun Shui Tang.

Jollibee has signed the deal for a three-year syndicated loan agreement with the Metropolitan Bank + Trust Co., Banco de Oro-Unibank Inc., Rizal Commercial Banking Corp. and the local branch of the Bank of Tokyo-Mitsubishi UFJ Ltd., Jollibee said in a statement. The Renminbi-denominated loan will amount to 700 million CNY, the company said.

The group said it would use the money in 2008 and 2009 to expand Yonghe King, invest in new facilities, and fund a previously announced acquisition of Hongzhuangyuan, a chain of restaurants located mostly in Beijing, for 55,5 million USD. «The funds they are lending us will enable Jollibee Foods Corporation to pursue its profitable expansion in one of the largest and fastest-growing consumer markets in the world», chairman Tony Tan Caktiong said in the statement.

_{About: Jollibee Foods Corporation, together with its subsidiaries, engages in the development, operation, and franchising of quick service restaurants primarily in the Philippines. In its home market, Jollibee operates its flagship hamburger and chicken chain with the same name, pasta and pizza store Greenwich, Chinese fast-food chain Chowking, the Red Ribbon bakery, and the Delifrance delicatessen. The group has 1’472 stores locally and 219 stores spread across Hong Kong, China, Vietnam, Dubai, Brunei, Indonesia and U.S. Territories (Saipan). The company also manufactures food products, as well as engages in leasing store sites to its independent franchisees. Jollibee Foods Corporation sells its food products under the Champ, Chicken Joy, and Zert Pies trademarks. The company was founded in 1975 and is based in Pasig City, the Philippines.}