Axxela Accorded Favourable Issuer Ratings of BBB plus (NG) and A2(NG) by GCR

Friday, February 12, 2020 / 02:10PM / Axxela Limited / Header Image Credit: Axxela Limited

AxxelaLimited ("Axxela"), has been accorded favourable national scale issuer ratingsof BBB+(NG) and A2(NG) in the long term and short term by Global Credit Ratings("GCR"). The ratings are valid until September 2021 and were ascribed due toAxxela's strategic initiatives, continued diversification of revenue sources,and robust business continuity plans. Agusto & Co. also recentlyrevalidated Axxela's corporate credit rating as "Bbb+" with a stable outlookuntil June 30, 2021.

Commentingon the rating renewal, Bolaji Osunsanya, Axxela's Chief Executive Officer,said: "Given the global headwinds faced by many sectors due to the pandemic,the company's rating profile reaffirms our healthy financial status,competitive position, and the application of Environmental, Social, andGovernance (ESG) standards across our sustainable business model. As anindustry leader, Axxela will continue to spur wider industrialisation todevelop communities and maximise shareholder value."

Accordingto the GCR report, "Axxela's ratings reflect its leading position within theNigerian natural gas distribution market, supported by long term distributionfranchises in Lagos and Port Harcourt. Other key strengths which haveunderpinned the stability of earnings and cash flows include long termagreements with suppliers and customers, as well as a shipper license on theWest African Gas Pipeline which enables Axxela supply gas to other West Africancountries. Axxela evidenced resilient performance in 3Q FY20, despite theCOVID-19 disruptions, and reported strong revenue growth over the review periodunderpinned by a larger client base, rising volumes, and firmer sellingprices."

Axxelarecently became the first Nigerian midstream company to successfully achieve adual listing of debt securities on the Nigerian Stock Exchange (NSE) and theFMDQ markets. The listing of the N11.5bn Series 1 Bonds is part of a multi-yearN50 billion Debt Issuance Programme issued through a special purpose vehicle - Axxela Funding 1 PLC.

"Weappreciate the continued recognition of our enterprise by the financialcommunity, and the positive credit ratings further enhance Axxela's anticipatedportfolio diversification initiatives. Confidence in our company's futureincreases the certainty of access to capital markets, which are critical to ourcontinued growth and midterm regional expansion strategy," said TimothyOnoniwu, Axxela's Chief Financial Officer.