Rating Release

Agusto & Co. assigns an indicative “Bbb+” rating to Dimension Data SPV Funding Plc’s proposed up to ₦5 billion Three-Year Senior Secured Fixed Rate Bond Due 2029, with a stable outlook 

The rating expires on 18 April 2027. 

Agusto & Co. assigns an indicative “Bbb+” rating to Dimension Data SPV Funding Plc’s (“the Issuer” or “the SPV”) proposed up to ₦5 billion Three-Year Senior Secured Fixed Rate Bond Due 2029 (“Series 1 Bond”, “the Bond” or “the Issue”) under its ₦20 billion Bond Issuance Programme. While the bond is secured by a fixed debenture over Dimension Data Limited’s (“Dimension Data”, “DDL”, “the Company” or “the Sponsor”) assets, our assessment of the issuer’s creditworthiness is based primarily on DDL’s ability to meet obligations from ongoing operations. The assigned rating reflects DDL’s improving core earnings, supported by its diversified service offerings across connectivity, systems integration and managed ICT services, as well as efficiency gains from recent network upgrades. The rating is also upheld by favourable market fundamentals in Nigeria’s Information and Communications Technology (ICT) Solutions Industry (including increasing enterprise digitalisation and rising demand for connectivity and cloud-based services), alongside the Sponsor’s planned capacity expansion and fibre rollout, which are expected to support further growth in operating cash flows. However, the rating is constrained by Dimension Data’s rising leverage and persistent long-term financing needs, reflecting the capital-intensive nature of its operations and the ongoing requirement for infrastructure upgrades to enhance service delivery. The assigned rating is further moderated by the Company’s exposure to adverse foreign exchange movements, imported input costs, and execution risks associated with the planned network expansion and capacity enhancement.

Dimension Data Limited is an indigenous ICT solutions provider offering enterprise connectivity, systems integration services, including the design, deployment and maintenance of information technology (IT) infrastructure, as well as cloud solutions such as data hosting, storage and virtual computing. The Company also offers managed services covering outsourced network operations, cybersecurity and IT support. Dimension Data operates a Tier III-compliant data centre in Lagos and has enhanced its Internet Protocol (IP) backbone to a 5-gigabits-capable network with scalability of up to 100 gigabits (GB), enhancing capacity and service reliability. DDL’s clientele includes several leading financial institutions and blue-chip corporates such as Internet Solutions SA, United Bank for Africa, Rand Merchant Bank, Stanbic IBTC Bank Plc, Access Bank Plc, Nigerian Bottling Company Plc, SAP Nigeria, Schlumberger Nigeria Limited, among others.