Meat Giant JBS Says Investor Demand for Its Bonds Undercuts ESG Concerns

JBS NV signage at the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 25, 2025. JBS NV shares started trading in New York on June 13, giving the world's largest meat producer a market value of about $15 billion as it culminated a years-long effort to reach a broader pool of investors. Photo by Michael Nagle /Bloomberg

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(Bloomberg) — JBS NV’s New York listing was met with fierce opposition from activist groups and politicians over the meat producer’s ESG record. Many investors, however, seem willing to look the other way.

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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. 

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“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. 

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The deal’s success suggests investors are inclined to shrug off troubling issues — from past scandals involving the brothers who control JBS to the company’s alleged role in deforestation — as long as the company continues to grow and keep its finances under control. 

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The 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. 

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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. 

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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.

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On Wednesday, 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. 

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JBS has also 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. Cavalcanti said in a Bloomberg TV interview that the company now has a “very robust” compliance program in place.

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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. 

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