PRESCO Plc has successfully issued N34.5 billion in series 1 seven-year fixed-rate notes as part of its N50 billion bond issuing program.
The company’s Managing Director, Felix Nwabuko, praised the institutional investor community for backing the transaction during the signing ceremony in Benin, Edo State.
According to him, the bond offering, which will be listed on the NGX and FMDQ Securities Exchanges, was 247 percent oversubscribed, with a coupon rate of 12.85 percent.
He went on to say that the bond drew interest from a diverse group of investors, including pension funds, asset managers, insurance firms, banks, and high-net-worth people.
The principal issuing house was Stanbic IBTC Capital Limited, with CardinalStone Partners Limited and Quantum Zenith Capital and Investments Limited acting as joint issuing houses.
“We are pleased by the success of our inaugural bond issue and appreciative to our institutional investor community for supporting the transaction,” Nwabuko continued.
“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.”
Kennedy Ichibor, Managing Director/Chief Executive Officer of Quantum Zenith Capital, and Michael Nzewi, Managing Director/Chief Executive Officer of Cardinal Stone, both spoke at the event and applauded Presco Plc for creating a favorable environment for the transaction and for continuing to grow the company over the years.
