Stanbic IBTC Capital Limited has successfully led the issuance of Presco Plc’s N82.89 billion bond, reinforcing its role as a major player in Nigeria’s capital market. The seven-year, 23.75% senior unsecured fixed-rate Series I bond is part of Presco’s N150 billion bond issuance programme, designed to support the company’s strategic expansion across West Africa.
Presco Plc disclosed that the proceeds from this bond will be used to fund its acquisition of a 100% equity stake in Ghana Oil Palm Development Company, marking a significant step in the company’s growth strategy.
Speaking on the transaction, the Managing Director/Chief Executive Officer of Presco Plc, Mr. Reji George, highlighted the importance of the bond issuance to the company’s expansion plans. “The successful completion of our Series 1 Bond issuance solidifies Presco’s foundation for continued growth and expansion. Aligned with our strategic objectives of increasing our planted area of palm oil and leading Africa in the fully integrated edible oil and fats business, the proceeds will primarily fund the acquisition of a majority equity stake in Ghana Oil Palm Development Company. This enhances our operational efficiencies, strengthens our market presence, and improves our competitive advantage in the palm oil sector beyond Nigeria.”
George added that the acquisition would enable Presco to better serve its customers and deliver sustainable value to shareholders, while appreciating the support of Stanbic IBTC Capital and other advisors involved in the transaction.
Also commenting on the deal, Chief Executive of Stanbic IBTC Capital, Oladele Sotubo, expressed pride in the company’s role. “Stanbic IBTC Capital is proud to have advised Presco Plc on the successful issuance of its N82.9 billion Series 1 bond. As the largest local currency corporate bond issuance in the Nigerian market in recent years, this milestone underscores our expertise in capital markets and our commitment to delivering innovative, high-impact financial solutions.”
Sotubo further emphasized that the transaction not only supports Presco’s growth ambitions but also contributes to funding diversification within Nigeria’s agricultural sector, driving sustainable industry expansion.
The bond issuance is seen as a landmark deal in Nigeria’s corporate finance landscape, reflecting investor confidence in Presco Plc’s business model and growth prospects.
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