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”) ₦35 Billion 26% Series 1 Floating Rate Bond Due 2032 (“the Bond”, “Series 1 Bond” or “the Issue”) with a stable outlook 

The rating expires on 31 December 2026.

Agusto & Co. hereby affirms the “Bbb+” rating assigned to the CRS Funding SPV Limited’s (“CRS Funding”, “the Issuer”, “SPV” or “the Company”) ₦35 Billion 26% Series 1 Floating Rate Bond Due 2032 (“the Bond”, “Series 1 Bond” or “the Issue”) under the ₦100 Billion Debt Issuance Programme. The rating reflects the consistent execution of the Irrevocable Standing Payment Order (ISPO), which mandates the monthly deduction of specified amounts from Cross River State Government’s (“CRS”, “Cross River State” or “the State”) statutory allocation into a designated Sinking Fund Account (SFA) to ensure timely fulfilment of coupon and principal repayment obligations.

On 31 January 2025, CRS Funding SPV Limited issued a ₦35 Billion 26% Series 1 Floating Rate Bond Due 2032, under its ₦100 Billion Debt Issuance Programme. Coupon on the Bond is payable semi-annually at a rate tied to the Federal Government of Nigeria’s bond yield with similar term to maturity, plus a fixed premium of 6.49%, subject to a cap of 29% and floor of 15%. Principal redemption is on a semi-annual basis over the 7-year tenor of the Issue, following the expiration of a 12-month moratorium. The proceeds from the Issue were utilized by Cross River State to finance infrastructure projects as well as purchase an aircraft for Cally Air – the State’s commercial airline. The Bond is backed by an Irrevocable Standing Payment Order maintained by CRS, authorizing the deduction of ₦512,347,771.27 monthly for the first twelve months, and thereafter ₦811,442,377.95 for the next seventy-two months, from its share of Statutory Allocation. The funds are held in a SFA under the control and management of the Bond Trustees for the benefit of the Bondholders in line with the Series 1 Trust Deed.