Agusto & Co. hereby upgrades the rating assigned to Paras Energy and Natural Resources Development Limited to A-

Rating Category: Corporates

Rating Release

Agusto & Co. hereby upgrades the rating assigned to Paras Energy and Natural Resources Development Limited to A-

The rating expires on 30 June 2025.

Agusto & Co. hereby upgrades the rating assigned to Paras Energy and Natural Resources Development Limited (“Paras Energy” or “the Company” or “PENRDL”) to A- on account of the better working capital position compared to the prior year. The rating also reflects the Company’s good financial condition characterised by healthy profitability and cash flow positions, low leverage and a stable and experienced management team. In addition, the rating takes into cognizance Paras Energy’s resilience to economic shocks upheld by its export-centred business model which provides significant upsides in periods of foreign currency volatilities, as seen in the review year. However, the rating is tempered by the Company’s concentrated customer base.

Paras Energy is the power generation arm of the African Industries Group, a conglomerate with over five decades of operations spanning various sectors in Nigeria including mining, steel manufacturing, glass manufacturing, power generation from gas and solar, decoratives, agriculture, logistics, chemicals, packaging, and research and development. In the review year, the Company was licensed by the National Electricity Regulatory Commission (NERC) to produce 96 megawatts (MW) of grid-connected electricity. However, in May 2024, NERC increased the Company’s on-grid electricity generation license to  170MW. In FY 2023, Paras Energy’s output was mainly for exports and sold to a singular customer – Société Béninoise de Production d’Électricité (SBPE), a state-owned company in the Republic of Benin. In addition, the Company signed two corporate clients in Nigeria in November 2023 to supply 2MW of electricity and an export off-taker in the Republic of Togo in August 2024 to supply up to 40MW. Looking ahead, the Company plans to diversify its customer base by targeting more corporate clients in Nigeria under the captive power model and expanding electricity supply in the Republic of Togo.

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.
Send via WhatsApp
Search

Finance & Leasing

COMPANY RATING EXPIRY OUTLOOK COUNTRY
LECON Finance Company Limited Aa-/A1+ Jun 30 , 2027 Stable Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Lagos Free Zone Company Bbb/A2 Jun 30 , 2027 Stable Nigeria
Geregu Power PLC and its ₦40.09 Billion Bond A- Jun 30 , 2027 WITHDRAW Nigeria
Greenpeg Nigeria Limited Bbb+ Jun 30 , 2027 Stable Nigeria
Payaza Africa Limited A-/A1 Jun 30 , 2027 Stable Nigeria
United Nigeria Airlines Company Limited Bbb-/A3 Jun 30 , 2027 Stable Nigeria
Golden Fertilizer Company Limited A-/A1 Sep 30 , 2027 Stable Nigeria
Geregu Power Plc A-/A1 Jun 30 , 2027 Stable Nigeria
Zeenab Foods Limited A-/A1 Jun 30 , 2027 Stable Nigeria
Pivot Integrated Energy Services Limited Bbb- Jun 30 , 2027 Stable Nigeria
Stratos Trading Limited Bbb-/A3 Jun 30 , 2027 Stable Nigeria
MTN Nigeria Communications PLC Aaa/A1+ Jun 30 , 2027 Stable Nigeria
Layer3 Limited Bbb/A2 Jun 30 , 2027 Stable Nigeria
BUA Cement PLC Aa-/A1+ Jun 30 , 2027 Stable Nigeria
Cardinal Torch Company Limited Bbb-/A3 Jun 30 , 2027 Stable Nigeria
CIG Motors Company Limited Bbb/A2 Jun 30 , 2027 Stable Nigeria
Arco WorldWide Services Limited A/A1 Sep 30 , 2026 Stable Nigeria
Dimension Data Limited Bbb+/A2 Sep 30 , 2026 Stable Nigeria
Arco WorldWide Services Limited A/A1 Sep 30 , 2026 Stable Nigeria
Cutix PLC Bbb+ Oct 31 , 2026 Stable Nigeria

Corporate Bonds

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Primero BRT Securitization SPV Plc's ₦14.5 Billion Series 1 Bond Bbb-sf Oct 22 , 2026 Stable Nigeria
Wemabod Financing SPV Limited’s ₦3 billion Senior Guaranteed Bond Aa- Mar 21 , 2027 Stable Nigeria
Stratos Trading Limited’s ₦5 Billion Series 1 Not Bbb- May 31 , 2027 Stable Nigeria
MTN Nigeria Communications PLC’s ₦110 billion Series 1 Bond Aaa Apr 30 , 2027 Stable Nigeria
Craneburg EKSG Motorway Company PLC’s ₦32.5 Billion Bond Aaa Apr 23 , 2027 Stable Nigeria
Dimension Data SPV Funding Plc’s ₦5 billion Bond Bbb+ Apr 18 , 2027 Stable Nigeria
TSL SPV Plc’s ₦12 Billion Infrastructure Bond Aaa Oct 06 , 2026 Stable Nigeria
FMN Financing 1 PLC’s ₦4.89 Billion and ₦25 Billion Bonds A- Dec 15 , 2026 Stable Nigeria
GEL Utility Funding SPV Plc’s ₦13 Billion Bond Aaa Aug 31 , 2026 Stable Nigeria
MTN Nigeria Communications PLC's ₦10,085,600,000 and ₦104,914,400,000 Bonds Aa+ Sep 30 , 2026 Stable Nigeria
GPC-SPV Company PLC’s ₦20 Billion Bond Aaa Nov 23 , 2026 Stable Nigeria
Lagos State Government's ₦100 Billion Bond Aa Sep 30 , 2026 Stable Nigeria
MTN Nigeria Communications PLC's ₦89.99 Billion Bond Aa+ Sep 30 , 2026 Stable Nigeria
Lagos State Government's ₦38.7 Billion and ₦5.34 Billion Bonds Aa Sep 30 , 2026 Stable Nigeria
Lagos State Infrastructure Sukuk SPV Plc's ₦19.815 Billion Aa Sep 30 , 2026 Stable Nigeria
Lagos State Government's ₦137.3 Billion Bond Aa Sep 30 , 2026 Stable Nigeria
Lagos State Government's ₦115 Billion Bond and Hybrid Instruments Issuance Programme. Aa Sep 30 , 2026 Stable Nigeria
BUA Cement PLC’s ₦115 Billion Bond A+ Dec 31 , 2026 - Nigeria
UAC of Nigeria PLC's up to ₦75 billion Bond A- Nov 30 , 2026 Stable Nigeria
Lagos State Government's Proposed ₦14.8 Billion Green Bond and Hybrid Instruments Issuance Programme Aa Sep 30 , 2026 Stable Nigeria
Lagos State Government's proposed ₦200 Billion Bond and Hybrid Instruments Issuance Programme Aa Sep 30 , 2026 Stable Nigeria
Presco PLC’s ₦82.9 Billion Bond Aa Jan 31 , 2027 Stable Nigeria
CRS Funding SPV Limited’s ₦35 Billion Bond Bbb+ Dec 31 , 2026 Stable Nigeria
Paras Energy Funding SPV PLC’s ₦15 Billion Bond A+ Oct 30 , 2026 Stable Nigeria
LFZC Funding SPV Plc’s ₦25 Billion Infrastructure Bond Aaa Mar 04 , 2027 Stable Nigeria
LFZC Funding SPV Plc’s ₦17.5 Billion Infrastructure Bond Aaa Mar 04 , 2027 Stable Nigeria
NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria