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Presco issues N34.5bn bond

by Business News Report

Presco Plc has said that it is issuing N34.5 billion Series 1 seven-year Fixed Rate bonds under its N50 billion bond issuance programme. This is contained in a statement by Mr Felix Nwabuko, the company’s Managing Director made available to newsmen in Benin. 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. He commended institutional investor community for supporting the transaction during the bond issue signing ceremony which held at the company’s Obaretin Estate, Benin, Edo. Nwabuko said the bond issue was 24 per cent subscribed and priced at a coupon rate of 12.85 per cent.

“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.” 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.” He said the bond would be listed on the Nigerian Exchange Ltd and FMDQ Securities Exchange. Also speaking, Mr 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. “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.” Also, Managing Director/Chief Chief Exective Officer, Quantum Zenith Capital, Kennedy Ichibor and Michael Nzewi of Cardinal Stone, commended the company for creating conducive atmosphere for the transaction. They commended the company for keeping it’s path of growth over the years. (NAN)

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