Presco Begins Subscription for N30bn Bond Issuance

By Aduragbemi Omiyale

One of the leading integrated agro-industrial companies, Presco Plc, is looking to borrow N30 billion from investors through the issuance of bonds.

Subscription for the bond issuance commenced on Monday, February 28, 2022, and will close on Monday, March 7, 2022, according to details of the exercise obtained by Business Post.

The debt instrument, which has a tenor of seven years, would be sold at a coupon rate between 12.25 per cent and 12.75 per cent, with the principal repayments to be amortised following a 36-month moratorium.

The fixed-rate senior unsecured bonds are callable either in part or in whole, and can be exercised by the issuer from the expiration of 48 months from the issue date, in accordance with the provisions of the Series I Trust Deed.

According to Presco, the funds raised from the exercise would be used to refinance bank facilities and for working capital requirements.

Interested bond traders can purchase the notes with a minimum of N10 million and multiples of N1,000 thereafter and after issuance, they could be listed on the Nigerian Exchange (NGX) Limited and/or the FMDQ Securities Exchange.

Presco is a subsidiary of SIAT SA and has interests in oil palm plantations, palm oil mill, palm kernel crushing plant and vegetable oil refining and fractionation plants.

The firm also has olein and stearin packaging plants and a biogas plant to treat its palm oil mill effluent which is the first of its kind in West Africa.

Presco specialises in the cultivation of oil palm and in the extraction, refining and fractionation of crude palm oil into finished products and is the market leader for supply of speciality fats and oils and assures a reliability of supply of its products year-round.

The company holds the Obaretin Estate (a concession of 6,387 hectares), the Ologbo Estate (a concession of 13,545 hectares), and Sakponba Estate (a concession of 16,738 hectares) all located in Edo State. The Cowan Estate (a concession of 2,739 hectares), also held by Presco, is located in Delta State.