Rating Release
Agusto & Co. affirms the ‘Aaa’ rating assigned to LFZC Funding SPV PLC’s ₦25 billion 20-year 13.25% Senior Guaranteed Fixed Rate Infrastructure Bond Due 2042, with a stable outlook
The rating expires on 16 March 2026.
Agusto & Co. hereby affirms the “Aaa” rating assigned to LFZC Funding SPV PLC’s (“LFZC Funding SPV”, “the Issuer” or “the Company”) ₦25 billion 20-year 13.25% Senior Guaranteed Fixed Rate Infrastructure Bond Due 2042 (“Series 2 Bond”, “the Bond” or “the Issue”) under the ₦50 Billion Bond Issuance Programme. The assigned rating mirrors the standalone rating of Infrastructure Credit Guarantee Company Limited (“InfraCredit”, or “the Guarantor”) based on the continuing and irrevocable guarantee, which ensures that the Guarantor steps in to settle the Bond obligations, if required. In line with our credit substitution criteria, the Series 2 Bond rating is thus aligned with the Guarantor’s rating. This alignment is maintained regardless of our assessment of the financial condition of Lagos Free Zone Company (“the Co-Obligor” or “the Sponsor”), as the guarantee is the primary factor for the rating equalisation. InfraCredit is rated “Aaa” by Agusto & Co., reflecting its strong financial condition and robust capacity to meet its obligations as and when due.
In January 2017, InfraCredit was established as a development credit institution to provide local currency guarantee to debt instruments issued to finance eligible infrastructure projects in Nigeria. Since its inception, the Guarantor has mobilised a total capital of ₦235 billion distributed across projects in power, waste management, telecommunication, transportation and renewable energy, among others.
