Rand Merchant Bank Nigeria has said it served as the joint lead issuing house for Presco Plc in Series 1 of its N150 billion Bond Issuance Programme.
The issuance, which saw Presco raise N82.89 billion, is acknowledged as the largest corporate bond issuance in Nigeria since 2022.
It is also regarded as the largest bond issuance by an agricultural company in Nigeria. The bond, which has a tenor of seven years, was issued at a coupon (interest) rate of 23.75 per cent. The raise was also targeted to the acquisition of Ghana Oil Palm Development Company Limited, as Presco seeks to expand its operations.
Commenting on the issuance, executive director at Rand Merchant Bank Nigeria Limited, Chidi Iwuchukwu, noted, “Advising on Nigeria’s largest corporate bond issuance since 2022 has been a privilege.”
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He noted, “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.”
RMB also played a key role by providing debt advisory services to Presco, guiding the company through a flexible acquisition structure to help determine the best funding mix for its expansion plans.
It was noted that 16 pension fund administrators, representing 73 per cent of the PFAs in Nigeria participated in the process. Thus, it marks a record-breaking level of PFA participation in a corporate bond issuance. This level of participation defies the sentiments of the Nigerian pension regulators towards corporate fixed-income instruments. Recall that in December 2024, the National Pension Commission issued a directive to PFAs to pause investments in commercial papers.
The regulator also emphasised that PFAs may only invest in commercial papers (CPs) issued by companies with a minimum credit rating of ‘A’ or in CPs from companies rated ‘BBB’, provided they are guaranteed by an multilateral development finance entity with a credit rating of ‘A’ or higher.
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