Presco Plc, Nigeria’s leading palm oil producer, is set to raise ₦100 billion in the first tranche of its ₦150 billion bond issuance programme. This marks the largest corporate bond issuance in Nigeria’s palm oil sector, with a seven-year tenure and a competitive yield range of 23.25% to 23.75%.
The company, rated Aa by Agusto & Co. and A- by GCR, demonstrates a strong credit profile. This bond issuance is Presco’s second foray into the capital market, following a successful ₦34.5 billion raise in 2022 at a 12.85% coupon rate.
Presco’s move underscores renewed confidence in Nigeria’s capital markets, which saw declining corporate bond activity in 2024. While corporate bond issuances dropped to ₦69.37 billion in 2024 from ₦126 billion in 2023, Presco’s decision to pursue long-term funding highlights its optimism about market recovery.
Presco’s robust 2024 performance, featuring one of the country’s highest returns on equity and triple-digit net profit growth, positions the company as a top investment choice. This strategic bond issuance is poised to bolster investor sentiment and reaffirm the potential of Nigeria’s capital markets amidst high-interest rate pressures.
Before this move, notable issuances included MTN Nigeria’s ₦115 billion bond in 2022 and Dangote Group’s ₦112.42 billion raise the same year. Presco’s record-breaking venture sets a new benchmark in the industry, solidifying its leadership position.
