Rating Release

 Agusto & Co. hereby assigns an “A-” rating and a stable outlook to the NCNR SPV Limited’s (“NCNR”, “the Issuer”, “the SPV” or “the Company”) ₦10.5 Billion 14% Seven-Year Fixed Rate Bond Due 2027 (“Bond” or “the Issue”).

The Issue rating is underpinned by the unconditional and legally binding support provided by Niger State Government through (the State Executive Council and the House of Assembly resolutions) the issuance of an Irrevocable Standing Payment Order (ISPO) authorising monthly deductions of ₦217.8 million over seven years from the State’s statutory allocation (SA) into a sinking fund account to meet the Bond obligations. In addition, the rating mirrors the existing rating assigned to the Niger State’s existing Bonds in issue (primarily repayable from monthly ISPO deductions from the State’s share of SA) as well as the credit quality of the transaction structure.

The Bond will attract a fixed coupon rate of 14% payable semi-annually in arrears over the seven years, while the Bond principal will be redeemed every six months over the tenor of the Issue. The Bond proceeds will be used to finance the development of toll road projects in Niger State.

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.