Rating Release
Agusto & Co. hereby affirms the “Aa” rating assigned to Aradel Holdings PLC’s ₦10.318 billion Five-Year 17% Fixed Rate Senior Unsecured Bond Due 2028, with a stable outlook
The rating expires on 30 June 2027.
Agusto & Co. hereby affirms the “Aa” rating assigned to Aradel Holdings PLC’s (“Aradel Holdings”, “Aradel”, “the Company” or “the Issuer”) ₦10.318 billion Five-Year 17% Fixed Rate Senior Unsecured Bond Due 2028 (“Series 1 Bond”, “the Bond” or “the Issue”). The assigned rating reflects the Company’s strong earnings and operating cash flow generation, sizeable hydrocarbon reserves and enlarged production base, strengthened by the consolidation of ND Western Limited (NDW) and Renaissance Africa Energy Holdings Limited (Renaissance) in December 2025. The rating also considers Aradel’s integrated upstream, midstream and downstream operations, diversified revenue streams, significant dollar-linked earnings and demonstrated capacity to meet the Bond’s coupon and principal obligations from internally generated cash flows. Furthermore, the Issuer’s ongoing field development, gas commercialisation, refinery expansion and integration of the enlarged asset portfolio are expected to support production growth and recurring earnings over the medium term. However, the rating is constrained by the Company’s increased leverage and financing costs following acquisition-related borrowings, as well as exposure to industry-wide risks, including crude oil price volatility, crude theft, pipeline vandalism, security-related disruptions and regulatory uncertainties.
Aradel Holdings PLC is an integrated indigenous energy company with operations across the upstream, midstream and downstream segments of Nigeria’s Oil & Gas Industry. The Company’s flagship upstream asset is the Ogbele Field (PML 14), an integrated oil and gas hub with crude processing, gas handling and modular refining infrastructure. The Issuer also holds a 100% interest in the Omerelu, Olo and Olo West Fields, alongside participation in Oil Prospecting Licence (OPL) 227.