Agusto & Co. hereby assigns a “Aa-” rating to Interswitch Africa One Plc’s (“the Issuer” or “SPV”) ₦23 Billion 7-Year 15% Fixed Rate Series 1 Senior Unsecured Callable Bonds Due 2026. This rating expires 30 October 2020.
The Issue rating is underlined by the unconditional and irrevocable support provided by Interswitch Limited through the pledging of its operating cash flow as the principal source of repayment. Ultimately, the risk of payment of coupon and principal on the Series 1 Bond rests with Interswitch Limited. The assigned Issue rating also reflects our opinion on the potential risks arising from the rapid changes in technology, increasing regulatory oversight due to multiple licenses, growing competition from emerging disruptive payment technologies and business models as well as higher operational risk due to rising scale of business operations.
Interswitch Limited (“the Sponsor”, “Interswitch” or “the Company”) sponsored the incorporation of a special purpose vehicle, Interswitch Africa One Plc, to finance the Sponsor’s funding requirements, by issuing Debt Securities or Bonds to the general public. The issuer is a non-operational special purpose company set up as a separate and distinct entity from the Sponsor.
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.
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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.