Rating Release

Agusto & Co. affirms the “Aa-“ rating assigned to Wemabod Financing SPV Limited’s ₦3 billion 24% Fixed Rate Senior Guaranteed Bond, with a stable outlook 

The rating expires on 21 March 2027. 

Agusto & Co. hereby affirms the “Aa-” rating assigned to Wemabod Financing SPV Limited’s (“Wemabod Financing SPV” or “the Issuer”) ₦3 billion 24% Fixed Rate Senior Guaranteed Bond due 2027 (“Series 1 Bond”, “the Bond” or “the Issue”). The rating mirrors  the “Aa-” rating of Odu’a Investment Company Limited based on the subsisting corporate guarantee. The rating reflects Odu’a Investment’s stable financial performance, with operating income and cash flows supported by dividend receipts, investment returns from non-equity assets, and rental income. The rating also reflects the ongoing impact of the Guarantor’s repositioning efforts, including the exit from non-performing assets and the redeployment of capital into higher-yielding portfolios. The rating is further underpinned by a solid pool of investable and liquid assets, a well-diversified earnings base, a conservative capital structure, low leverage, and a portfolio of subsidiaries and associates with established positions in Nigeria’s core industries. Nevertheless, the rating remains constrained by the modest profitability of the Guarantor, reflecting the continued impact of legacy non-performing assets and the early-stage contribution of more recent investments.

Wemabod Financing SPV Limited is a special purpose vehicle established by Wemabod Limited (“the Sponsor”) to raise debt capital primarily to finance the latter’s property development activities. Wemabod Limited is a real estate and property development company with a diversified portfolio spanning commercial, industrial and residential assets across major Nigerian cities. The Sponsor operates as the real estate subsidiary of Odu’a Investment Company Limited (“the Guarantor”), a conglomerate owned by the governments of the former Western Region of Nigeria, comprising Oyo, Ogun, Ondo, Osun, Ekiti and Lagos States.