Presco Plc has entered the debt capital market to raise up to N100 billion through a bond issuance under its N150 billion Bond Programme. Afrinvest Limited, in an investor update, disclosed that the Series 1 Bond offering will close on Friday, January 10, 2025.
A subsidiary of SIAT SA, Presco is a fully integrated agro-industrial company specializing in oil palm cultivation, crude palm oil extraction, and refining. The company operates palm oil mills, kernel crushing plants, and vegetable oil refining facilities. It also features packaging and biogas plants, the latter being the first of its kind in West Africa.
Presco holds extensive plantations, including the Obaretin Estate (6,132 hectares), Ologbo Estate (13,552 hectares), and Ato Estate (16,704 hectares) in Edo State, as well as the Cowan Estate (2,769 hectares) in Delta State.
Analysts praise Presco’s robust financial metrics, with gross profit and EBITDA margins of 63% and 62%, respectively, for the 2023 financial year. The company also boasts an interest coverage ratio of 6.4x, underscoring its financial stability and ability to support expansion initiatives.
Presco’s credit ratings include an “Aa” from Agusto & Co and an “A-” from Global Credit Rating Company Limited, reinforcing its strong standing in the debt market.
