Agusto & Co. hereby affirms the “Aaa” rating assigned to TSL SPV Plc’s ₦12 Billion Bond

Rating Category: Corporate Bonds

Agusto & Co. hereby affirms the “Aaa” rating assigned to TSL SPV Plc’s ₦12 Billion Bond

Rating Release

Agusto & Co. hereby affirms the “Aaa” rating assigned to TSL SPV Plc’s ₦12 Billion Bond

The rating expires on 30 October 2023.

Agusto & Co. hereby affirms the “Aaa” rating assigned to TSL SPV Plc’s (“TSL SPV”, “the Issuer”, or “the Company”) ₦12 Billion 10-Year 10% Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond Due 2030 (“Series 1 Bond”, “the Bond” or “the Issue”) under the ₦50 Billion Bond Issuance Programme. The rating mirrors the “Aaa” rating of Infrastructure Credit Guarantee Company Limited1 (“InfraCredit” or “the Guarantor”) and underscores the low default risk associated with the Series 1 Bond. Agusto & Co did not appraise the financial condition of Transport Services Limited (“TSL”, “the Co-Obligor” or “the Sponsor”) but has hinged the rating affirmation on the credit substitution qualities of the subsisting guarantee arrangement that promises the full and timely payment of the Series 1 Bond obligations.

The Series 1 Bond was issued on 6 October 2020 at a fixed coupon rate of 10% payable semi-annually over ten years. The Bond principal will be redeemed bi-annually(beginning from 6 April 2023) until its final maturity on 6 October 2030 following the expiration of a two-year moratorium. The net proceeds of the Series 1 Bond were utilised by the Co-Obligor to refinance existing bank loans, support the acquisition of new vehicles to bolster its fleet size and fund the minimum reserve account, which is the equivalent of a one-time coupon payment. The Bond constitutes a direct, unconditional, senior and unsecured obligation of the Issuer and Co-Obligor (together referred to as Obligors). The payment obligations of the Obligors under the Bond and of the Guarantor under the Deed of Guarantee shall at all times rank at least equally with all their other unsubordinated indebtedness and monetary obligations (present and future).The Sponsor has met four coupon payments (amounting to ₦2.4 billion) to the Series 1 Bondholders. Should the Sponsor fail to fund the Payment Account, InfraCredit becomes liable and will continue to honour coupon and principal obligations on the due dates as specified in the amortisation schedule.

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