Rating Release

Agusto & Co. hereby assign an indicative “Aaa” rating to LFZC Funding SPV Plc.’s ₦25 Billion with a stable outlook

The rating expires on 28-02-23

Agusto & Co. hereby assign an indicative “Aaa” rating to LFZC Funding SPV Plc.’s (“LFZC Funding SPV” or “the Issuer”) ₦25 Billion 20-Year Senior Guaranteed Fixed Rate Infrastructure Bond Due 2041 (“Series 2 Bond”, “the Bond” or “the Issue”). The assigned rating is hinged on the strength of the unconditional and irrevocable guarantee provided by Infrastructure Credit Guarantee Company Limited (“InfraCredit” or “the Guarantor”) assuring the prompt payment of the Series 2 Bond obligations as and when due. The guarantee allows InfraCredit to step in and fund the Payment Account should the Issuer and Lagos Free Zone Company (“LFZC”, “the Co-Obligor” or “the Sponsor”) fail to do so within the specified time, thus shielding Bondholders from default risk. In July 2021, Agusto & Co. affirmed the “Aaa” rating assigned to InfraCredit reflecting its impeccable financial condition and overwhelming capacity to meet obligations as and when due.

LFZC Funding SPV Plc is a special purpose vehicle incorporated by Lagos Free Zone Company with the sole purpose of raising funds from the debt capital market to pass through to the Co-Obligor. LFZC is the licensee and operator of the Lagos Free Zone – the first privately owned economic zone in Nigeria. The 830-hectare Lagos Free Zone, which is integrated with a deep seaport (“the Lekki Deep Seaport”), is promoted by Singapore-based Tolaram Group Incorporated. The Zone is being developed as a “Live-Work-Play” community and equipped with built-up standard industrial and warehouse facilities. About 23 registered enterprises including some notable international brands have operational bases in the Zone as at year-end 2021.

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.