Rating Release

Agusto & Co. hereby affirms the “Bbb+” rating assigned to Kogi State Government’s ₦5 billion Series 1 Bond

The rating expires on 29 December 2024.

Agusto & Co. hereby affirms the “Bbb+” rating assigned to Kogi State Government’s (“Kogi State”, “KOSG” or “the Issuer”) ₦5 Billion 15% Fixed Rate Infrastructure Development Series 1 Bond (“the Issue” or “the Bond”) Due 2023. The rating reflects our opinion on the adequate Sinking Fund Account (SFA) balance, which is sufficient to meet the final coupon and principal obligations to the Series 1 Bondholders. Also, the relatively stable political climate in the aftermath of the governorship election in the State further supports our opinion on the Series 1 Bond redemption. The Series 1 Bond, which was originally issued in December 2013 at a fixed coupon rate of 15%, was restructured in 2017 following approval from the Securities and Exchange Commission (SEC). These entailed the extension of the Bond tenor by three years to 2023, while the principal repayment structure was changed from a bullet to amortising. However, the Bond’s coupon rate was maintained at 15% payable half-yearly alongside a portion of the principal until final maturity on 29 December 2023.

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.