Agusto & Co. hereby affirms the “Aaa” rating assigned to GEL Utility Funding SPV PLC’s ₦13 Billion Bond with stable outlook
The rating expires on 31-08-23
Agusto & Co. hereby affirms the “Aaa” rating assigned to GEL Utility Funding SPV PLC’s (“the Issuer”) ₦13 Billion Fifteen-Year 15.15% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond Due 2034 (“Series 1 Bond”, “the Bond” or “the Issue”) under the ₦50 Billion Programme. The assigned rating reflects the low credit risk associated with the Issue buttressed by the irrevocable, unconditional and enforceable undertaking by the Infrastructure Credit Guarantee Company Limited (“InfraCredit or the Co-Guarantor 1”) and the United States Agency for International Development (“USAID or the Co-Guarantor 2”) to guarantee the prompt payment of the coupon and principal due on the Series 1 Bond. InfraCredit is rated Aaa by Agusto & Co. with a stable outlook.
GEL Utility Funding SPV PLC issued a ₦13 billion Series 1 Bond on 28 August 2019. The Bond proceeds were passed through to GEL Utility Limited (“GEL” “the Company” or “the Sponsor”). The Bond was co-guaranteed by InfraCredit (50%) and USAID (50%) based on the Deeds of Guarantee with the Bond Trustee. The Bond constitutes senior direct obligations of the Issuer and shall at all times rank pari passu with any existing debt of the Sponsor. The Series 1 Bond proceeds were used to refinance GEL’s existing loan obligations (70%), while the balance was used to construct power infrastructure as well as to fund the Debt Service Reserve Account (DSRA).
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.