Rating Release

Agusto & Co. hereby affirms the “Bbb+” rating assigned to the CRS Funding SPV Limited’s (“CRS Funding”, “the Issuer”, “SPV” or “the Company”) ₦22.8 Billion Seven-Year 15.5% Series 1 Fixed Rate Development Bond Due 2029 with a stable outlook 

The rating expires on 5 August 2026.

Agusto & Co. hereby affirms the “Bbb+” rating assigned to the CRS Funding SPV Limited’s (“CRS Funding”, “the Issuer”, “SPV” or “the Company”) ₦22.8 Billion Seven-Year 15.5% Series 1 Fixed Rate Development Bond Due 2029 (“the Bond”, “Series 1 Bond” or “the Issue”) under the ₦35 Billion Debt Issuance Programme (“DIP”). The rating reflects the consistent fulfilment of the Irrevocable Standing Payment Order (ISPO), authorising monthly deductions of specified amounts from Cross River State Government’s (“CRS”, “Cross River State” or “Guarantor”) share of centrally allocated revenue into a dedicated Sinking Fund Account (SFA) to ensure the timely servicing of coupon payments and principal obligations on the Issue.

In April 2022, the Cross River State Government facilitated the incorporation of a special purpose vehicle – CRS Funding SPV Limited – to raise funds from the capital market. Subsequently, CRS Funding SPV Limited issued a ₦22.8 billion Seven-Year 15.5% Fixed Rate Series 1 Bond in August 2022 to refinance existing commercial bank loans previously utilized for development projects in the State. The Bond is fully backed by resolutions from the Cross River State Executive Council and the House of Assembly, authorising monthly deductions of ₦77.1 million for the first seven months and ₦541.3 million for the next seventy-seven months as a first-line charge (ISPO) from the State’s share of statutory allocation to cover the Bond obligations. Coupon on the Series 1 Bond is paid semi-annually, while the principal is being amortised bi-annually over the seven-year tenor of the Issue