Monde Nissin Pays Down Majority of Remaining Term Loans

  • IPO proceeds that were earmarked for capital expenditures will now be used to pay down the
    majority of remaining term loans of Php 15.6 bn, resulting in approximately Php 700 mn in
    interest savings

  • Capital expenditure plans and growth strategy remain unchanged and will now be funded by
    operating cash flow and lines of financing already available

MAKATI CITY, PHILIPPINES – August 9, 2021 – Monde Nissin Corporation’s (“Monde Nissin” or the
“Company”; PSE stock symbol: MONDE) board of directors has approved, in its regular meeting today, the
change in use of IPO proceeds, previously earmarked for capital expenditures, to pay down the majority
of the remaining term loans of Php 15.6 bn, resulting in interest expense savings of approximately Php
700mn assuming interest rates remain at current levels. This action was done to avoid the significant
negative carry associated with large cash balances as these have substantially lower investment returns
than the interest payments on the outstanding debt.

The Board confirms that there is no change in the capital expenditure plans as stipulated in the IPO
Prospectus, amounting to Php 26.5bn or 57.2% of the net proceeds, and considers that the above change
in the use of net proceeds is in the best interests of the Company and its shareholders.

Henry Soesanto, Monde Nissin’s CEO, commented: “Given the current interest rate environment where
returns on cash are negligible and where Monde Nissin has a large amount of cash due to our IPO, it was
determined that the most prudent course of action for shareholders is to pay down debt, resulting in
significant interest savings and a reduction in interest rate risk. We continue to have strong conviction of
the long-term growth opportunities of our businesses and capital expenditure plans and growth strategy
will remain unchanged. Funding will be provided by our strong operating cash flows supplemented with
existing lines of credit if needed. “

About Monde Nissin

Monde Nissin Corporation is a global food and beverages company headquartered in the Philippines, with
a portfolio of iconic and market leading brands across fast-growing categories, including Lucky Me!
noodles, SkyFlakes crackers, Fita crackers, Monde baked goods and Quorn meat alternative products. The
Company aspires to improve the well-being of people and the planet, and create sustainable solutions for
food security. That aspiration is reflected in our commitment to continuously improve our products to
make them more delicious, nutritious, and better for the planet. For more information, please visit

About Quorn

Quorn Foods is a global market leader in healthy, sustainable protein. Headquartered in Stokesley, North
Yorkshire in the United Kingdom, the company offers a wide range of great-tasting products to appeal to
the rapidly expanding group of people wanting to reduce their meat consumption. The company employs
around 900 people and exports to 15 countries around the world, including Australia, Singapore and the
United States. Quorn® is one of the United Kingdom’s top 40 FMCG brands. Quorn Foods Ltd is the
reporting group which includes a main trading company, Marlow Foods Ltd. Quorn Foods Ltd
encompasses all international operations of Quorn® and Cauldron®. For more information, please visit

Investor Relations
Michael Paska

Media Contact (Philippines)
Mark Tiangco

You may view the Disclosure on Pay Down of Majority of Remaining Term Loans filed to PSE here.


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