Stanbic IBTC, Lead Issuing House For Presco Plc In Debut Issuance of ₦34.5 billion 12.85% Series 1 Bonds

The Bond Issue was 247% subscribed and priced at a coupon rate of 12.85%. This is Presco’s debut bond issuance in the Nigerian debt capital markets which attracted participation from a wide range of investors including pension funds, asset managers, insurance companies, banks and high net worth individuals. Presco sought out to raise 30 billion but the order book closed at 74 billion, so the Company elected to issue an additional 15% to investors thus raising a total of 34.5 billion.

Commenting on the Bond Issue, Mr. Felix Nwabuko, Managing Director of Presco, said “We are pleased at the success of our debut Bond Issue and grateful to our institutional investor community for supporting the transaction. This is a landmark transaction for Presco and it has broadened our sources of long-term funding. The success of this transaction evidences the resilience of our business, its strong cash generation and a long-term future with enormous potential for sustainable growth, in a pivotal sector for the country’s agri-food promotion strategy, made possible by our market-leading position in Nigeria, Africa’s largest market for palm oil products. This is supported by our A+ rating by Agusto & Co and A- rating from GCR.”

Speaking at the signing ceremony which held at the Company’s Obaretin Estate in Edo State, Funso Akere, Chief Executive of Stanbic IBTC Capital, said:

“Stanbic IBTC Capital, CardinalStone Partners and Quantum Zenith Capital are delighted to have advised Presco on its debut issuance in the Nigerian debt capital markets. This transaction is Presco Plc's debut issuance in the Nigerian debt capital markets and comes exactly two decades after Presco Plc's IPO and listing on Nigerian Exchange Limited, which Stanbic IBTC Capital also handled."

The Bonds will be listed on Nigerian Exchange Limited and FMDQ Securities Exchange.