Agusto & Co. affirms the ‘Bbb-’ rating assigned to NOVAMBL Investments SPV Plc’s ₦10 billion 7-year Fixed Rate Series 1 bond with a stable outlook.

Agusto & Co. affirms the ‘Bbb-’ rating assigned to NOVAMBL Investments SPV Plc’s ₦10 billion 7-year Fixed Rate Series 1 bond with a stable outlook.

RATING RELEASE

Agusto & Co. affirms the ‘Bbb-’ rating assigned to NOVAMBL Investments SPV Plc’s (‘the Issuer’) ₦10 billion 7-year Fixed Rate Series 1 Subordinated Unsecured Bond, with a stable outlook.

The rating expires on 31 December 2022.

Agusto & Co. hereby affirms the “Bbb-” rating assigned to NOVAMBL Investments SPV Plc’s (‘the Issuer’) ₦10 billion 7-year Fixed Rate Series 1 Subordinated Unsecured Bond (‘the Issue’ or ‘the Bond’) due in 2027. The Bond is part of a ₦50 billion Debt Issuance Programme registered in 2020 with the Securities and Exchange Commission. The obligations emanating from the Issue are fully guaranteed by Nova Merchant Bank Limited (‘Nova MBL’ or ‘the Sponsor’ or ‘the Bank’). The rating assigned to the Bond is a notch lower than the Sponsor’s standalone rating of ‘Bbb’ by Agusto & Co., given its subordinated status. The rating is upheld by Nova MBL’s good capitalisation, good liquidity profile and good asset quality. The rating is however constrained by the obligor and sectorial concentration in the loan book, the high turnover in the senior management team as well as the impact of the weak economic recovery and the harsh regulatory environment on the operating terrain.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

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