Stanbic IBTC Capital Limited has taken the lead role in helping Presco Plc issue a large bond worth N82.89 billion.
In a statement released on Thursday, it was announced that this bond will have a fixed interest rate of 23.75 percent and will be unsecured, meaning it isn’t backed by any specific assets. This bond is part of a larger plan where Presco is allowed to issue a total of N150 billion in bonds over time. The main goal of this bond issuance is to help Presco expand its operations in West Africa.
Presco plans to use the money raised from this bond to buy a complete ownership stake in a company called Ghana Oil Palm Development Company. This acquisition is part of Presco’s strategic efforts to grow its business.
Reji George, the Managing Director and CEO of Presco, shared his thoughts on this development, stating, “Successfully completing this bond issuance strengthens our foundation for ongoing growth and expansion. It aligns with our goals to increase our palm oil plantations and eventually become a leader in Africa’s edible oils and fats industry. The funds will primarily be used to acquire a significant stake in the Ghana Oil Palm Development Company.”
He also highlighted that this move will not only make Presco operate more efficiently but also enhance its presence and competitiveness in the palm oil market, extending beyond Nigeria. Furthermore, he expressed gratitude to Stanbic IBTC Capital and all the advisors for their support throughout the process.
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Oladele Sotubo, the Chief Executive of Stanbic IBTC Capital, also commented on the deal, saying, “We are honored to have assisted Presco PLC with the successful issuance of this N82.9 billion Series 1 bond. This is significant as it marks one of the largest corporate bond issuances in Nigerian currency in recent years. It’s a testament to our deep understanding of capital markets and our dedication to providing innovative financial solutions.”
He added that this bond deal not only supports Presco’s growth ambitions but also helps diversify funding sources within the agricultural sector, facilitating sustainable growth in the industry. Sotubo thanked Presco PLC for their trust in Stanbic IBTC Capital and the team of advisors who played a role in successfully finalizing this important deal.
Presco itself is a comprehensive agro-industrial venture that includes oil palm farms, a palm oil processing mill, a plant for crushing palm kernels, and a facility for refining and processing vegetable oil.
