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.