Presco announces successful issuance of N34.5 billion bond

Presco Plc has announced the successful issuance of N34.5 billion series 1 seven-year fixed-rate bonds under its N50 billion-bond issuance programme.

Speaking at the signing ceremony held in Benin, Edo State, the Managing Director of the company, Felix Nwabuko, commended the institutional investor community for supporting the transaction.

According to him, the bond issuance, which would be listed on the NGX and FMDQ Securities Exchange, was 247 per cent oversubscribed and priced at a coupon rate of 12.85 per cent.

He said the bond attracted participation from a wide range of investors, including pension funds, asset managers, insurance companies, banks and high net worth individuals.

Stanbic IBTC Capital Limited acted as the lead issuing house while CardinalStone Partners Limited and Quantum Zenith Capital and Investments Limited acted as joint issuing houses.

Explaining further, Nwabuko said: “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.”

Also speaking at the event, the Chief Executive of Stanbic IBTC Capital, 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 (IPO) and listing on the Nigerian Exchange Limited (NGX) two decades ago.”

The Managing Director/Chief Executive Officer, Quantum Zenith Capital, Kennedy Ichibor and Michael Nzewi of Cardinal Stone who also spoke at the event, commended Presco Plc for creating a conducive environment for the transaction and for keeping the company on the path of growth over the years.