Rating Release

Agusto & Co. assigns an indicative “Bbb+” rating to Geregu Sukuk Plc’s ₦20 billion Bond with a stable outlook

The rating expires on 03-06-23

Agusto & Co. assigns an indicative “Bbb+” rating to Geregu Sukuk Plc’s (“Geregu Sukuk”, “the SPV” or “the Issuer”) ₦20 billion Ijara Lease Sukuk Due 2029 (“Series 2”, “the Sukuk” or “the Issue”) under the ₦100 billion Multi-Instrument Issuance Programme. The assigned rating mirrors the standalone rating of Geregu Power Plc (“Geregu Power”, “GPP”, “the Sponsor” or “the Guarantor”) whose operating cash flow has been pledged as the primary source of repaying the Sukuk obligations. The Sponsor is rated “Bbb+” by Agusto & Co and the rating is valid until 31 December 2022.

Geregu Sukuk Plc is a special purpose vehicle incorporated by the Sponsor with the sole aim of raising funds from the debt capital market to support the latter’s capital expenditure. Geregu Power Plc operates one of the gas-propelled power assets in Nigeria (Geregu Power I), which it acquired in a government-led privatisation scheme in 2013. The current capacity of the plant stands at 435 megawatts with which the Company produces and supplies electricity through the national grid to the Nigerian Bulk Electricity Trading (NBET) Plc in line with the latter’s subsisting Power Purchase Agreement (PPA) with successor generation companies (GenCos) and other independent power producers (IPP). Geregu Power is a wholly-owned subsidiary of Amperion Power Distribution Company Limited after it successfully acquired the 20% equity stake previously owned by the Federal Government of Nigeria (through its agencies) in November 2021.

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.