Rating Release

 Agusto & Co. assigns “Bbb+” rating and a stable outlook to Axxela Limited.

This rating expires 24 June 2021.

Agusto & Co. hereby affirms the “Bbb+” rating assigned to Axxela Limited (‘Axxela’ or ‘the Company’). The assigned rating reflects our opinion on the Company’s satisfactory financial condition underlined by the following: i) acceptable profitability level spurred by ongoing international diversification initiatives ii) adequate working capital supported by short term financing surpluses over the last three years iii) moderate leverage underpinned by lower borrowing costs and satisfactory equity cushion iv) stable and experienced management team and v) strong parental support from Helios Investment Partners – a private equity firm with over $3.6 billion funds under management. In addition, the rating also takes into cognisance the adverse impact of COVID-19 pandemic on Axxela’s business operations across the West African region and the strategic initiatives been implemented by the Company to minimise the negative effects.

Axxela Limited is a leading player in the mid-stream gas marketing and distribution industry in Nigeria, providing gas, a cleaner, cost-efficient energy fuel, to top-tier industrial consumers in three major commercial cities in Nigeria (Lagos, Port Harcourt and Sagamu). The Company has developed over 300 km of gas pipeline and supplies gas to over 175 industrial and commercial companies in Nigeria and also exports natural gas to the national electric power companies in Togo via the West African gas pipeline network, in line with its strategic move to diversify its revenue sources geographically.

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.