RMB facilitates landmark corporate bond issuance for Presco

Rand Merchant Bank (RMB) says it is pleased to have acted as joint lead issuing house for Presco PLC in its landmark Series 1 fixed rate senior unsecured bond issuance under the ₦150 Billion Bond Issuance Programme.

This issuance stands as the largest corporate bond transaction in Nigeria’s debt capital markets since 2022 and the highest-ever raised by an agro-industrial company in the nation. A statement said the milestone not only underscores Presco’s sector leadership but also highlights strong investor confidence in its strategic growth trajectory.

The Series 1 Bond, with a tenor of 7 years, was priced at a coupon rate of 23.75 percent following a rigorous book-building process that attracted substantial interest from institutional investors. The issuance recorded significant participation from 16 Pension Fund Administrators (PFAs), representing 73 percent of all PFAs.

“This overwhelming institutional demand reflects exceptional trust in Presco’s creditworthiness and strategic vision, particularly its planned acquisition of Ghana Oil Palm Development Company Limited. This strategic acquisition is set to accelerate Presco’s regional expansion and further solidify Nigeria’s leadership in the sustainable agro-industry in Africa,” the statement noted.

“This accomplishment demonstrates RMB’s expertise in guiding companies through the capital markets process and our commitment to driving growth”, the statement added.

In addition to the joint lead issuing house and bookrunner roles, RMB provided debt advisory services to Presco, advising the Company through a dynamic acquisition structure that was key to determining an optimal funding mix for its expansion plans.

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Speaking on the transaction registration, Reji George, managing director / CEO, Presco PLC commented, “The successful completion of our Series 1 Bond issuance further fortifies Presco PLC position for sustainable growth and strategic expansion.

”In line with our goals of transforming the business to lead Africa in the edible oil industry in the future, the funds raised will be primarily directed towards acquiring a majority stake in the Ghana Oil Palm Development Company (GOPDC).

”This achievement not only enhances our operational efficiencies as an organization, it also solidifies our market presence and competitive advantage in the palm oil sector beyond Nigeria. Most importantly, it positions us to provide even greater value to our customers while ensuring long-term returns for our shareholders.

”We extend our sincere gratitude to all the parties to this transaction including RMB as joint lead arranger for their unwavering support and expertise throughout this process, which played a pivotal role in the successful completion of this transaction.”

Chidi Iwuchukwu, executive director at Rand Merchant Bank Nigeria Limited, stated: “Advising on Nigeria’s largest corporate bond issuance since 2022 has been a privilege. Despite the elevated interest rate environment, the record-breaking participation from PFAs highlights the depth of Nigeria’s debt capital markets and the credibility of high-quality issuers like Presco. We remain committed to supporting Presco’s ambitious growth agenda.”

Bayo Ajayi, chief executive officer of Rand Merchant Bank Nigeria Limited, added: “This transaction marks a pivotal moment for Nigeria’s agro-industrial sector. By securing ₦82.89 billion at competitive pricing, Presco has demonstrated its ability to mobilize large-scale capital for transformative growth. We are proud to partner with Presco as it leads sustainable expansion across West Africa.”