Presco Plc, Nigeria’s largest palm oil producer, is set to make history with a N100 billion bond issuance, the largest corporate bond in the industry.
This move is part of the company’s N150 billion bond programme.
The 7-year bond will offer a competitive yield range of 23.25% to 23.75%. Presco Plc boasts an impressive credit profile, with an Aa rating from Agusto & Co. and an A- rating from GCR.
This bond issuance marks Presco Plc’s second foray into the capital market, following a successful N34.5 billion raise in 2022. That issuance was also a 7-year bond with a 12.85% coupon rate.
Presco Plc’s bond issuance comes on the heels of other significant corporate bond offerings in Nigeria. Notably, Dangote Group raised N112.42 billion in December 2022, while MTN Nigeria secured N115 billion in September 2022.
In recent times, Nigeria’s high-interest monetary environment has led corporate issuers to favor shorter-tenured commercial papers.
However, Presco Plc’s decision to raise N100 billion reflects a renewed confidence in Nigeria’s capital markets.
This strategic move has the potential to positively influence corporate sentiment toward the capital markets.
Presco Plc’s solid fundamentals, including one of the highest returns on equity in the country in 2024 and a projected triple-digit growth in net profit, position the company as a standout player in Nigeria’s corporate landscape.
With its robust financial performance, Presco Plc is poised to attract institutional and individual investors, further reinforcing its appeal in the market.
