Rating Release

Agusto & Co. hereby upgrades the rating assigned to Presco PLC’s ₦34.5 billion Bond with a stable outlook

The rating expires on 30-06-23

Agusto & Co. hereby upgrades the 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 to “Aa-“. The Issue rating mirrors the standalone rating of Presco PLC (“Presco” or “the Issuer” or “the Company”), which was upgraded to “Aa-“. Presco’s rating reflects the Company’s good and sustainable profitability level buttressed by its ability to pass on cost increases to customers, very strong cash flow position, low leverage metrics, adequate working capital and a stable, qualified and experienced management team. The rating is also supported by Presco PLC’s dominant position in the Nigerian Oil Palm Industry, strong local demand for crude and refined oil and sustained government support, which we expect to continue to positively influence Presco’s business fundamentals in the near to medium term.

Presco is a fully-integrated agro-industrial company with oil palm plantations in Edo and Delta states. Presco PLC has a diversified portfolio of speciality fats and oil products. The Company is a member of Societed’Investissement pour l’AgricultureTropicale (‘SIAT SA) group – a Belgian agro-industrial company specialized in industrial and smallholder plantations of tree crops as well as allied processing industries including palm oil milling and refining, soap making and crumb rubber factories. In the financial year ended 31 December 2021, Presco completed the 100% acquisition of Siat Nigeria Limited (also engaged in a similar business) to the Company.

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