JBS’s $3.5 billion global bond offering last June stands as one of the clearest demonstrations in recent years of how far a Latin American corporate can push the boundaries of the investment-grade market. In scale, tenor, pricing and execution, the transaction not only redefined the company’s own curve but also set new reference points for the region’s corporate debt universe, earning it the award for Corporate High-Grade Bond of the Year.
The transaction came at a moment of heightened scrutiny. Less than ten days after completing its landmark listing on the New York Stock Exchange, JBS returned to the US dollar bond market with its largest-ever issuance. The proximity to the equity deal raised the bar for execution, while global markets were still digesting geopolitical shocks that had unsettled risk sentiment only days earlier.
Despite that backdrop, JBS moved decisively. On June 23, the company priced a three-tranche senior unsecured offering totaling $3.5 billion, comprising long 10-year, long 30-year and, for the first time, a 40-year maturity. The notes were issued in 144A/Reg S format with registration rights and carried investment-grade ratings of Baa3/BBB-/BBB-.
What set the deal apart immediately was ambition. JBS had initially targeted $2 billion, largely to refinance upcoming maturities. Instead, demand built at exceptional speed, allowing the issuer to increase size materially while tightening pricing across all tenors.
Final sizing consisted of $1.25 billion of 10-year notes due 2036, $1.25 billion of 30-year notes due 2056 and $1 billion of 40-year notes due 2066. Coupons were set at 5.500%, 6.250% and 6.375%, respectively, with issue spreads of 125 basis points, 140 basis points and 155 basis points over US Treasuries.
“The spread over Treasury of the 40-year tranche was the lowest ever for a BBB- issuer, including US companies,” says JBS CFO Guilherme Cavalcanti. “And the 10-year bond got the lowest spread over Treasure for Brazilian corporate bonds.”
The orderbook dynamics were striking. Initial price thoughts incorporated concessions of roughly 25 to 40 basis points to stimulate demand, allowing books to fill rapidly and peak at around $16.5 billion. Even as guidance tightened sharply during execution, investor participation held firm, resulting in a heavily oversubscribed final book dominated by long-only institutional accounts.
“Demand was eight times higher than the offer that we had originally planned,” Cavalcanti says. “So we were able to increase the volume at the same time that we tightened spreads considerably.”
One institutional investor alone placed an order of $900 million, split evenly across the three tranches, underlining the depth of conviction behind the deal. Allocation data showed a strong tilt toward asset managers, with limited hedge fund participation — a hallmark of a high-quality, long-term investor base.
The maturity profile was equally notable. The 40-year tranche placed JBS among a very small group of Latin American corporates capable of issuing ultra-long tenor debt outside the quasi-sovereign space. Even more telling was the shape of the curve: the spread differential between the 10-year and 30-year tranches was just 15 basis points, reflecting investor comfort with the company’s long-term credit and aligning JBS with top-tier global investment-grade issuers.
Proceeds from the bond supported a comprehensive liability management exercise. The company launched a concurrent any-and-all tender offer for its 2027 notes, redeemed outstanding 2028 bonds, repaid short-term debt including commercial paper, and retained flexibility for general corporate purposes. The upsized transaction also enabled JBS to accelerate elements of its balance-sheet optimization and preserve optionality for capital returns.
Timing added to the deal’s complexity. The transaction launched following a weekend of heightened geopolitical tension, including US military action in Iran and renewed conflict in the Middle East — events that might have sidelined less prepared issuers.
“Our goal is to be always prepared to access the market,” Cavalcanti says. “The Iran bombing happened on Saturday, but we noticed that the market woke up calm on Monday and we decided to go ahead. Despite the geopolitical noise, we had no problems with the deal.”
The success of the issuance confirmed more than strong execution. It marked a decisive step in JBS’s evolution as a global investment-grade borrower, extending its maturity profile, flattening its curve and firmly distancing the company from its high-yield past.
In a year when investors were selective and market windows fleeting, JBS delivered a transaction that combined scale, innovation and precision. Few corporate bond offerings from Latin America in 2025 matched its ambition — or its impact.
JBS $3.5bn Senior Notes Issuance
Joint book-running managers: Bradesco; BTG Pactual; BB Securities; BBVA; BMO Capital Citi; ING; Itau; Markets Corp.; Mizuho; Rabo; RBC; Truist
Co-managers: Standard and Chartered; Regions Securities LLC; XP Investimentos Corretora de Câmbio; Títulos e Valores Mobiliârios S.A.; Banco Safra S.A.
Counsel to Issuer: White & Case; Lefosse
Counsel to Initial Purchasers: Davis Polk; Wardwell LLP; Machado, Meyer, Sendacz e Opice Advogados