Rating Release

Agusto & Co. hereby affirms the “Aa-” rating assigned to Presco PLC’s ₦34.5 billion Seven-Year Senior Unsecured Fixed Rate Bonds Due 2029

The rating expires on 30 June 2024.

Agusto & Co. hereby affirms the “Aa-” rating assigned to Presco PLC’s ₦34.5 billion Seven-Year Senior Unsecured Fixed Rate Bonds Due 2029 (“Series 1 Bond” or “the Issue” or “the Bond”) under its ₦50 billion Bond Issuance Programme. The Issue rating mirrors the standalone rating of “Aa-” assigned to Presco PLC (“Presco” or “the Issuer” or “the Company”). The assigned rating reflects Presco’s good and sustainable profitability and cash flow levels, bolstered by the revenue and cost synergies resulting from the business integration with Siat Nigeria Limited (SNL), adequate working capital and moderate leverage positions. The rating is further strengthened by the Company’s dominant position in the Nigerian Oil Palm Industry, the robust local demand for crude and refined oil, and the government’s efforts to achieve food sufficiency for its large population, which we expect to continue to have a positive impact on Presco’s business in the near to medium term. However, the rating is moderated by the inherent cyclical nature of the Company’s earnings and cash generation, stemming from susceptibility to external factors, including commodity price fluctuations and climatic conditions.

Presco PLC is an integrated agro-industrial company with oil palm plantations, a palm oil mill, a palm kernel crushing plant, and vegetable oil refining and fractionation plants in Edo and Delta states. The Company produces and sells various specialty fats and oil products. Presco is a member of Societed’Investissement pour l’AgricultureTropicale (“SIAT SA”) Group – a Belgian agro-industrial company with investments in plantations of tree crops and allied processing industries. In 2021, Presco completed a 100% acquisition of Siat Nigeria Limited (SNL), which is also engaged in a similar business as the Company.

The opinions expressed in this rating release do not represent any investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.