
Meat Giant JBS Says Investor Demand for Its Bonds Undercuts ESG Concerns
A $3.5 billion bond sale earlier this week drew demand totaling five times the offering, slashing borrowing costs and providing strong evidence of investors' confidence in JBS, Chief Financial Officer Guilherme Cavalcanti said Wednesday during a conference with journalists in New York.
'The main funds were all there, eager to be allocated,' Cavalcanti said, after being asked how criticism of the company impacted investor perception. The issuance was well oversubscribed less than three hours after launch, he added, without naming any of the buyers.
The deal's success suggests investors are inclined to look past activists' criticism over issues such as the past scandals involving the brothers who control JBS and the company's alleged role in deforestation, placing more emphasis on the company's ability to grow and keep its finances under control.
JBS has taken steps to boost its environmental, social and governance credentials. The company has done 'transformative' work to slash cattle ranching-related deforestation in the Amazon region, Chief Executive Officer Gilberto Tomazoni said during the same conference. And it has now a 'very robust' compliance program in place, Cavalcanti said in a Bloomberg TV interview.
The company said in a statement that investors have repeatedly demonstrated confidence in JBS's actions to mitigate risks in areas such as governance and the environment 'thanks to the robust programs JBS has implemented.'
The bond sale was the first since the meat producer listed its shares on the New York Stock Exchange earlier this month in a move aimed at attracting a broader pool of investors and reducing capital costs.
Bondholders demanded a premium of 1.25 percentage points over Treasuries for its $1.25 billion in 10-year bonds — a record low for JBS offerings with similar maturities, and comparable to the levels required from high-grade US issuers such as Energy Transfer LP and NextEra Energy Inc.
Borrowers rushed to tap debt markets this week amid improved risk sentiment. Mexico, Chile and Latam Airlines Group SA are among those who came out with bond issuances this week.
JBS said earnings before items such as interest and taxes have potential to grow at an annual rate of as much as 7% over the next five years as the company seeks to expand into branded, value-added food products. Sales are projected by analysts at a record $82.5 billion this year.
The stock is headed for a 10% gain this week, the most among main peers.
To be sure, JBS still faces scrutiny from activist groups. Earlier this month, Greenpeace International Program Director Carmen Gravatt said the organization will do its part to make sure that JBS — which relocated its corporate address to the Netherlands — operates within Dutch law. The non-profit also urged investors not to invest in the company.
(Updates with company statement in sixth paragraph, and share move in 11th paragraph.)
More stories like this are available on bloomberg.com
©2025 Bloomberg L.P.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Economic Times
29 minutes ago
- Economic Times
Stellantis looks to rev up India investments to increase market share
Stellantis, aiming to bolster its presence in India's competitive automotive market, is contemplating further investments to expand its retail network and introduce new products. Despite a current market share of under 1%, the company plans to double exports from India and is focusing on localization and strategic product launches. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Paris: Stellantis is considering a fresh round of investment in India, as the Dutch group that owns automotive brands like Fiat, Jeep, Chrysler and Peugeot aims to grow its retail network and launch new products in a market where its current share is under 1%. The company, the world's fourth-largest automaker, is also seeking to double its exports from India, said its top which has so far spent Rs 11,000 crore in India, said the extent of the new investment will be guided by the scope of its future programmes and the balance between domestic and export-focused is a "long game" market that requires consistent investment, product relevance and deeper ecosystem integration, Stellantis India managing director Shailesh Hazela said, terming the India plans as part of a 2.0 strategy. "It is not an easy market where success comes quickly, but the fundamentals are in place. We're focusing on doing the right things that align with local needs," he told and Korean manufacturers have a majority share in India's automobile market, the third largest in the Tata Motors and M&M are also significant players, accounting for nearly a quarter of sales between which remains a marginal player in the local market, is taking a phased approach to expansion, focusing on back-end capability, localisation and select product plays, its executives said. Sustained growth though will depend on how well the company aligns its offerings with Indian consumer expectations and competitive pricing company's current India line-up includes the Jeep portfolio and Citroen models like the C3 hatchback, C3 Aircross, and the recently launched Basalt. However, none have yet delivered volumes at scale. The firm's retail network and brand visibility lag its domestic sales remain modest, India is gradually emerging as a back-end for Stellantis' global operations. "India is the priority for the Asia-Pacific region," said Hazela. "If India is strong, the region benefits in terms of local production, cost competitiveness and speed of response to the market."Last year, the company exported about 10,000 fully built vehicles, along with 300,000 engines and powertrains, from India. India currently accounts for roughly 2% of the group's global volume base of 5-6 million units. The component supply chain has also been significantly scaled up; it now works with 500 local suppliers.(This reporter was in Paris on the invitation of Stellantis)


Time of India
30 minutes ago
- Time of India
Stellantis looks to rev up India investments to increase market share
Paris: Stellantis is considering a fresh round of investment in India, as the Dutch group that owns automotive brands like Fiat, Jeep, Chrysler and Peugeot aims to grow its retail network and launch new products in a market where its current share is under 1%. The company, the world's fourth-largest automaker, is also seeking to double its exports from India, said its top executives. Stellantis, which has so far spent Rs 11,000 crore in India, said the extent of the new investment will be guided by the scope of its future programmes and the balance between domestic and export-focused operations. India is a "long game" market that requires consistent investment, product relevance and deeper ecosystem integration, Stellantis India managing director Shailesh Hazela said, terming the India plans as part of a 2.0 strategy. "It is not an easy market where success comes quickly, but the fundamentals are in place. We're focusing on doing the right things that align with local needs," he told ET. Japanese and Korean manufacturers have a majority share in India's automobile market, the third largest in the world. Homegrown Tata Motors and M&M are also significant players, accounting for nearly a quarter of sales between them. Stellantis, which remains a marginal player in the local market, is taking a phased approach to expansion, focusing on back-end capability, localisation and select product plays, its executives said. Sustained growth though will depend on how well the company aligns its offerings with Indian consumer expectations and competitive pricing structures. The company's current India line-up includes the Jeep portfolio and Citroen models like the C3 hatchback, C3 Aircross, and the recently launched Basalt. However, none have yet delivered volumes at scale. The firm's retail network and brand visibility lag its rivals. While domestic sales remain modest, India is gradually emerging as a back-end for Stellantis' global operations. "India is the priority for the Asia-Pacific region," said Hazela. "If India is strong, the region benefits in terms of local production, cost competitiveness and speed of response to the market." Last year, the company exported about 10,000 fully built vehicles, along with 300,000 engines and powertrains, from India. India currently accounts for roughly 2% of the group's global volume base of 5-6 million units. The component supply chain has also been significantly scaled up; it now works with 500 local suppliers. (This reporter was in Paris on the invitation of Stellantis)

Mint
2 hours ago
- Mint
Trump tariffs: EU to extend suspension of countermeasures as trade talks with US continue
The European Union (EU) announced on Sunday that it will extend the suspension of its trade countermeasures against the United States until 1 August 2025. The decision comes as the bloc seeks to continue negotiations with the US as President Donald Trump threatened to impose a new 30 per cent tariff rate on EU goods, Bloomberg reported. These countermeasures, initially adopted by the bloc in response to tariffs imposed by Trump on steel and aluminum, had been paused to allow for talks and are due to snap back automatically at midnight on Tuesday, said EU chief Ursula von der Leyen. The chief also said that meanwhile, the EU would continue to prepare further countermeasures, ensuring the bloc is 'fully prepared,' in case the negotiations falter. The extension comes after Trump, in a letter published on Saturday, warned the EU of a 30 per cent tariff rate next month if better terms can't be negotiated. Trump has been sending out letters to trading partners, tweaking his proposed tariff levels from April and inviting them to further talks. This latest move by the US president has punctured recent optimism in Brussels over the prospects for an 11th-hour agreement between the major economies. The current list of countermeasures, which has been paused, targets around €21 billion ($24.5 billion) of US goods. The EU also has a second list prepared which is valued around €72 billion, highlighting the potential economic impact if a trade resolution is not reached. The bloc's ambassadors are scheduled to meet on Sunday to discuss the trade situation. Cars and tariff levels on agriculture have emerged as key sticking points between the EU and the US as the two sides work toward a provisional trade agreement in the coming days. The EU is pushing for a tariff no higher than 10 per cent on agricultural exports. An offset mechanism that some carmakers had pushed as a way to grant tariff relief to companies in return for investments in the US isn't under consideration for now as concerns arise for the EU that it could shift production across the Atlantic. Instead, the bloc's negotiators are now focusing talks on car tariffs, the news agency reported. Von der Leyen also clarified that the EU's most powerful trade tool, the anti-coercion instrument (ACI) would not be deployed at this point. 'The ACI is created for extraordinary situations,' she said. 'We are not there yet.' The extension of the suspension of countermeasures will require approval from the EU member states, the news report said.