Presco PLC has successfully raised ₦82.9 billion through a 7-year 23.75% senior unsecured fixed-rate bond issuance, marking a major milestone in its growth strategy. The issuance, part of the company’s ₦150 billion bond programme, was facilitated by Stanbic IBTC Capital Limited as the Lead Issuing House and registered with the Securities and Exchange Commission (SEC).
The funds raised from this transaction will primarily support Presco’s acquisition of a 100% equity stake in Ghana Oil Palm Development Company (GOPDC), a move aimed at strengthening its presence in the West African palm oil market. This acquisition aligns with Presco’s broader strategy to expand its planted area, improve operational efficiencies, and reinforce its position as a leading player in the edible oil and fats industry.
Presco’s Managing Director/CEO, Reji George, expressed confidence in the impact of the bond issuance, stating:
“The successful completion of our Series 1 Bond issuance solidifies Presco’s foundation for continued growth and expansion. This transaction enhances our market presence beyond Nigeria and allows us to better serve our customers while delivering sustainable value to our shareholders. We appreciate the unwavering support from Stanbic IBTC Capital and our advisory team throughout this process.”
The bond issuance stands out as one of the largest local currency corporate bond deals in recent years, highlighting investor confidence in Presco’s long-term strategy and the potential of Nigeria’s agricultural sector.
Oladele Sotubo, Chief Executive of Stanbic IBTC Capital, emphasized the significance of the deal, saying:
“This milestone underscores our deep expertise in capital markets and our commitment to delivering innovative financial solutions. Beyond reinforcing Presco’s strategic growth, the transaction enhances funding diversification within the agricultural sector, driving sustainable industry expansion.”
As Presco integrates GOPDC into its operations, the move is expected to boost its production capacity, strengthen supply chains, and position the company for greater competitiveness in the regional and global palm oil markets.
