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Agusto & Co. affirms the Bbb+ rating to assigned to Bayelsa State Government’s ₦11.32 Billion Bond

RATING RELEASE

Agusto & Co. affirms the Bbb+ rating to assigned to Bayelsa State Government’s (“Bayelsa”, “the State” or “the Issuer”) 11.32 Billion 16.5% Seven-Year Fixed Rate Bond due in 2019. This rating expires 30 September 2019.

The Bayelsa State Government’s ₦11.32 Billion 16.5% Seven-Year Fixed Rate Bond (“the Issue” or “the Bond”) due in 2019 is backed by the duly executed Irrevocable Standing Payment Order (ISPO) authorising monthly deductions of ₦421.5 million (previously ₦1.24 billion) from the State’s statutory allocation (SA) into a sinking fund account (SFA) to meet the Bond obligations. The revised coupon rate of 16.5% is being paid semi-annually until maturity of the Bond in June 2019, while the outstanding Bond principal of ₦11.32 billion is being amortised semi-annually from June 2017.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.

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 given to Agusto & Co.

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.