Presco Offers Investors N100 Billion Bond for Subscription
Presco Plc is in the debt capital market to raise up to N100 billion via bonds offering to investors, Afrinvest Limited said in an emailed note to investors. The company the series 1 Bond issuance comes under its N150 billion Bond Programme.
The offer is scheduled to close on Friday, 10 January 2025. Presco, a subsidiary of SIAT SA, is a fully integrated agro-industrial establishment with oil palm plantations, palm oil mill, palm kernel crushing plant and vegetable oil refining and fractionation plants.
Presco 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 specializes in the cultivation of oil palm and in the extraction, refining and fractionation of crude palm oil into finished products. Presco is the market leader for supply of specialty fats and oils and assures a reliability of supply of its products year-round.
Presco holds the Obaretin Estate (a concession of 6,132 hectares), the Ologbo Estate (a concession of 13,552 hectares), and Ato Estate (a concession of 16,704 hectares) all located in Edo State.
The Cowan Estate -a concession of 2,769 hectares – also held by Presco, is located in Delta State. Analysts said the company’s financial ratios are impressive with gross profit and EBITDA margins of 63% and 62% respectively as of financial year 2023.
Interest coverage of 6.4x over the same period is extremely adequate and supportive of various expansion initiatives. Presco has an Issuer rating of Aa from Agusto & Co and A- from Global Credit Rating Company Limited. #Presco Offers Investors N100 Billion Bond for Subscription Ministry Seeks $2 billion Fibre Optics Funding
