Rating Release 

Agusto & Co. hereby affirms the “A” rating assigned to Fountain SPV Limited’s  ₦15 Billion Seven-Year 10% Fixed Rate Unsubordinated Medium Term Note Due 2027, with a stable outlook. 

The rating expires on 30 September 2027. 

Agusto & Co. hereby affirms the “A” rating assigned to Fountain SPV Limited’s (“Fountain”, “the Issuer”, “the SPV” or “the Company”) ₦15 Billion Seven-Year 10% Fixed Rate Unsubordinated Medium Term Note Due 2027 (“the Bond”, “the Note” or “the Issue”). The rating reflects the Ekiti State Government’s (“Ekiti State,” “EKSG,” or “the Guarantor”) consistent fulfilment of the Irrevocable Standing Payment Order (ISPO), which authorises the monthly deduction of ₦345 million from its share of centrally collected revenue (statutory allocation) into a dedicated Sinking Fund Account (SFA) for the timely servicing of the Bond obligations. The assigned rating is further upheld by a good Sinking Fund coverage ratio of 2.9x, based on the SFA balance plus future ISPO remittances. Notably, the SFA balance of ₦7.1 billion as at 30 June 2026 alone covers the outstanding Bond obligations of ₦4.5 billion 1.6x, positioning the Issuer to fully redeem the Bond even without recourse to the outstanding ISPO inflows.

In August 2020, the Ekiti State Government sponsored the incorporation of a special purpose vehicle – Fountain SPV Limited – to facilitate the issuance of private bonds for infrastructure development in the State. Subsequently, Fountain SPV Limited issued a ₦15 billion Private Bond in December 2020 to finance the construction of the Ekiti Cargo Airport and the digitisation of the State’s land registry. The Bond carries a fixed coupon rate of 10%, payable semi-annually in June and December, while the principal is being amortised on a half-yearly basis over its seven year tenor.