Presco Plc, Nigeria’s leading palm oil producer, is poised to make history with its N100 billion Series 1 bond issuance, the largest corporate bond offering in the industry. This landmark transaction is part of the company’s N150 billion bond programme.
The 7-year bond will offer a competitive yield range of 23.25% to 23.75%, reflecting Presco’s strong credit profile, which boasts an Aa rating from Agusto & Co. and an A- rating from GCR. This issuance marks the company’s second foray into the capital market, following its successful N34.5 billion raise in 2022.
Presco’s decision to tap into the capital market is a testament to its confidence in Nigeria’s economic prospects. This move is expected to have a positive impact on corporate sentiment, encouraging other companies to explore the capital markets.
In a year marked by high-interest rates, Presco’s solid fundamentals and impressive financial performance make it an attractive investment opportunity. With one of the highest returns on equity in Nigeria in 2024 and a projected triple-digit growth in net profit, Presco is well-positioned for continued success.
This bond issuance is a significant development in Nigeria’s capital markets, demonstrating Presco’s commitment to strategic growth and expansion. As the company continues to drive innovation and excellence in the palm oil industry, its strong financial foundation and investor confidence are expected to propel it to even greater heights.
