In a move to bolster its operations and drive expansion, Presco Plc said it is raising N100 billion bond issuance under its N150 billion bond programme.
This was contained in the company’s notice to the Nigerian Exchange Limited. Presco stated that the initiative has received the necessary approvals from the company’s board of directors and the Securities and Exchange Commission (SEC).
The bond issuance up to N100 billion, classified as Series 1 is scheduled to close on January 10, 2025.
Presco outlined plans to utilize the proceeds for the acquisition of Ghana Oil Palm Development Company (GOPDC) Limited and to fund the expansion of its existing operations, saying that this aligns with the company’s commitment to enhancing its footprint in the agricultural and agro-allied sector.
“Presco has obtained approval of its Board of Directors to access medium to long-term debt funding from the domestic capital market of up to N100bn series 1 bonds under its N150 billion bond programme.
“All the relevant approvals from the Securities and Exchange Commission in respect of the issuance have been received. The bond issue commences immediately to close on January 10, 2025.
“The proceeds of the funds will be applied towards funding the acquisition of Ghana Oil Palm Development Company (GOPDC) Limited and expansion on existing operations by Presco.
Analysts noted that the approval of this bond issuance marks a significant milestone for Presco as it positions itself for growth and increased market share in the West African region.
The move highlights Presco’s strategic focus on leveraging domestic capital market opportunities to finance its growth ambitions.
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 specialises 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.
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