Agusto & Co. hereby affirms the “Aaa” rating assigned to LFZC Funding SPV Plc’s ₦25 Billion Bond

Rating Category: Corporate Bonds

Agusto & Co. hereby affirms the “Aaa” rating assigned to LFZC Funding SPV Plc’s ₦25 Billion Bond

Rating Release

Agusto & Co. hereby affirms the “Aaa” rating assigned to LFZC Funding SPV Plc’s ₦25 Billion Bond

The rating expires on 31 March 2024.

Agusto & Co. hereby affirms the “Aaa” rating assigned to LFZC Funding SPV Plc’s (“LFZ Funding SPV”, “the Issuer”, or “the Company”) ₦25 Billion 20-Year 13.25% Senior Guaranteed Fixed Rate Infrastructure Bond Due 2042 (“Series 2 Bond”, “the Bond” or “the Issue”) under the ₦50 Billion Bond Issuance Programme. The rating reflects the low default risk associated with the Bond based on the subsisting corporate guarantee provided by Infrastructure Credit Guarantee Company Limited (“InfraCredit” or “the Guarantor”), which is rated “Aaa” by Agusto & Co. Therefore, the rating of the Series 2 Bond is equalised with the Guarantor’s rating under our credit substitution criteria for guaranteed instruments. This is irrespective of our assessment of the financial condition of Lagos Free Zone Company (“the Co-Obligor” or “the Sponsor”), as the guarantee acts as an overriding single factor for the rating equalisation.
The Series 2 Bond was issued on 10 May 2022 at a coupon rate of 13.25% payable on the sixteenth day of March and September every year for twenty years, while the principal amount will be amortised bi-annually following the expiration of a five-year moratorium. The net proceeds were used by the Sponsor to refinance a bridge loan, which was obtained from a commercial bank to support ongoing construction at the Lagos Free Zone
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 to Agusto & Co.
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Finance & Leasing

COMPANY RATING EXPIRY OUTLOOK COUNTRY
C& I Leasing Plc’s Series I ₦10 billion 7-year 15.5% Fixed Rate Senior Secured Bond Bbb+ Jun 30 , 2023 Stable Nigeria
C&I Leasing Plc Bbb- Jun 30 , 2023 Negative Nigeria
C& I Leasing Plc’s Series I ₦7 billion Fixed Rate Senior Secured Bond A- Jun 30 , 2023 Stable Nigeria
FundQuest Financial Services Limited Bbb- Jun 30 , 2023 Stable Nigeria
Fast Credit Limited Bbb Jun 30 , 2023 Stable Nigeria
Citihomes Finance Company Limited SR3 Nov 24 , 2023 Stable Nigeria
Lukefield Finance Company Limited Bbb- Jun 30 , 2023 Stable Nigeria
Credit Direct Limited Bbb Jun 30 , 2023 Stable Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
UAC of Nigeria Plc A- Jun 30 , 2023 Stable Nigeria
African Steel Mills Limited Bbb Jun 30 , 2023 Stable Nigeria
Abuja Steel Mills Limited Bbb+ Jun 30 , 2023 Stable Nigeria
GPC Energy & Logistics Limited Bbb Jun 30 , 2023 Stable Nigeria
Eat N Go Limited Bbb- Jun 30 , 2023 Stable Nigeria
UAC Foods Limited A- Jun 30 , 2023 Stable Nigeria
Lionseal Industries Limited Bbb- Jun 30 , 2023 Stable Nigeria
Lagos State Government Aa- Sep 30 , 2023 Stable Nigeria
BB Landmark Realty Limited Bbb Jun 30 , 2023 Stable Nigeria
Julius Berger Nigeria Plc A- Jun 30 , 2023 Stable Nigeria
BUA Cement PLC A+ Jun 30 , 2023 Stable Nigeria
Sundry Foods Limited A- Jun 30 , 2023 Stable Nigeria
GEL Utility Limited Bbb+ Jun 30 , 2023 Stable Nigeria
Industrial and Medical Gases Nigeria Plc A+ Jun 30 , 2023 Stable Nigeria
African Nonferrous Industries Limited A- Jun 30 , 2023 Stable Nigeria
North South Power Company Limited A- Jun 30 , 2023 Stable Nigeria
African Foundries Limited Bbb+ Jun 30 , 2023 Stable Nigeria

Corporate Bonds

COMPANY RATING EXPIRY OUTLOOK COUNTRY
AFIL SPV Plc Asset Backed Commercial Paper S3sf Dec 31 , 2023 Stable Nigeria
Flour Mills Nigeria Plc's ₦20 billion Series 3 Bonds (Tranche A & B) A- Feb 29 , 2024 Stable Nigeria
ABC Transport Plc's ₦900 Billion Five-Year 16.5% Fixed Rate Senior Secured Bond Due 2027 Bbb- Jun 30 , 2023 Negative Nigeria
Flour Mills of Nigeria Plc up to ₦40 billion 3-Year Fixed Rate Senior Unsecured Bond Due 2026 A- Dec 31 , 2023 Stable Nigeria
LFZC Funding SPV Plc’s up to ₦25 Billion 20-Year Senior Guaranteed Fixed Rate Infrastructure Bond Due 2042 Aaa Mar 31 , 2024 Stable Nigeria
Eat & Go Finance SPV Plc’s ₦11.5 Billion 14.25% Seven-Year Fixed Rate Senior Unsecured Bond Due 2026 Bbb- Dec 31 , 2023 Stable Nigeria
Sundry Foods Funding SPV Plc’s ₦2.5 Billion 5-Year 13.5% Series 1 Fixed Rate Bond Due 2026 A- Dec 31 , 2023 Stable Nigeria
TSL SPV Plc’s ₦12 Billion 10-Year 10% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond Due 2030 Aaa Oct 31 , 2023 Stable Nigeria
BUA Cement Plc's ₦115 billion 7.5% Seven-Year Senior Unsecured Fixed Rate Bond Due 2027 A+ Dec 31 , 2023 Stable Nigeria
NCNR SPV Limited’s ₦10.5 Billion 14% Fixed Rate Series 1 Bond Due 2027 A- Sep 30 , 2023 Stable Nigeria
LFZC Funding SPV Plc’s ₦10.5 Billion 20-Year 13.25% Senior Guaranteed Fixed Rate Infrastructure Bond Due 2041 Aaa Jun 30 , 2023 Stable Nigeria
Axxela Funding 1 Plc's ₦11.5 billion 14.3% Fixed Rate Bond Due 2027 A- May 31 , 2023 Stable Nigeria
MTN Nigeria Communications Plc’s up to ₦100 billion Series 1 Bond Aa+ Jun 30 , 2023 Stable Nigeria
Geregu Sukuk Plc’s ₦20 billion Bond Bbb+ Jun 30 , 2023 Stable Nigeria
GEL Utility Funding SPV PLC’s ₦13 Billion Bond Aaa Aug 31 , 2023 Stable Nigeria
Viathan Funding Plc.’s ₦10 billion 10-year Series 1 Senior Guaranteed Fixed Rate Bond Due 2027 Aaa Dec 31 , 2027 Stable Nigeria
NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria