Agro-industrial giant, Presco Plc, has announced the issuance of N34.5 billion Series 1 7-year Fixed Rate bonds under its N50 billion bond issuance programme.
This is coming on the heels of the company’s recent impressive performance in the capital market as it continues to enjoy investors’ positive sentiments.
This disclosure is contained in a statement issued by the Managing Director of Presco Plc, Mr Felix Nwabuko, on Tuesday in Benin.
According to NAN, Nwabuko said that the bond attracted participation from a wide range of investors including pension funds, asset managers, insurance companies, banks and high networth individuals.
Managing Director of Presco Plc commends the success of the bond issue
Nwabuko, during the bond issue signing ceremony at the company’s office in Benin, commended institutional investors for supporting the transaction, adding that it was 24% subscribed and priced at a coupon rate of 12.85%.
He said, “Presco sought out to raise N30 billion but the order book closed at N74 billion, so the company elected to issue an additional 15 per cent to investors thus raising a total of N34.5 billion.
“Stanbic IBTC Capital Ltd acted as Lead Issuing House to the bond issue, while CardinalStone Partners Ltd and Quantum Zenith Capital and Investments Ltd acted as joint issuing houses to the bond issue.
“We are pleased by 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.”
He said the bond would be listed on the Nigerian Exchange Ltd and FMDQ Securities Exchange.
What the Advisers to the transaction are saying
Speaking at the occasion, the Chief Executive Officer of Stanbic IBTC Capital, Mr Funso Akere, 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.
“We thank the institutional investor community for supporting the issue, as its success should encourage other similar companies to access the domestic debt capital markets for their strategic funding needs.
“We also thank the board and management of Presco for giving the Issuing Houses a free hand to guide the process.
“Stanbic IBTC Capital is especially delighted to have worked on this landmark issuance, having handled Presco’s Initial Public Offering and listing on Nigerian Exchange Ltd two decades ago.”
What you should know
Nairametrics had earlier reported that Presco Plc share price appreciated by 27.88% in March 2022, enjoying investors’ positive sentiment as it rose from N104.00 to N133.00 at the end of March. The company grew its capitalization from N104.00 billion to N133.00 billion.
It also recorded a 97.68% growth in revenue in its most recent fourth-quarter financial result for the period ended December 30, 2021, increasing from N23.89 billion to N47.23 billion in the period being reviewed.
The agro-industrial giant recorded a massive 258.57% growth in profit, increasing from N5.26 billion in 2020 to N18.87 billion within the same corresponding period.
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