Finance

Presco issues N34.5 billion series 1 bond

Presco

Market leader in the supply of specialty fat and oils, Presco Plc has announced successful issuance of  N34.5billion Series 1 seven-year Fixed Rate Bonds under its N50 billion Bond Issuance Programme.  

 Speaking on Tuesday at the signing ceremony held at the Company’s Obaretin Estate, Benin,  Edo State, Managing Director of Presco Plc, Mr Felix Nwabuko commended institutional investor community for supporting the transaction. 

According to the company, the Bond Issue was 247% subscribed and priced at a coupon rate of 12.85%.  

This is Presco’s debut bond issuance in the Nigerian debt capital markets and the Bond Issue attracted participation from a wide range of investors including pension funds, asset managers, insurance companies, banks and high net worth individuals.  

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Presco sought out to raise N30billion but the order book closed at N74billion, so the Company elected to issue an additional 15% to investors thus raising a total of N34.5 billion. 

Stanbic IBTC Capital Limited acted as Lead Issuing House to the Bond Issue, while CardinalStone Partners Limited and Quantum Zenith Capital and Investments Limited acted as Joint Issuing Houses to the Bond Issue. 

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Also speaking, 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.” 

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 Managing Director/Chief Chief Exective Officer, Quantum Zenith Capital, Kennedy Ichibor and Michael Nzewi of Cardinal Stone, commended Presco Plc for creating conducive atmosphere for the transaction and for keeping the  company on the path of growth over the years.   

 Meanwhile, the Bonds will be listed on Nigerian Exchange Limited and FMDQ Securities Exchange. 

Thisday

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