Rating Release
Agusto & Co. upgrades the rating assigned to NEN Infrastructure Limited’s ₦40.975 Billion 25% Fixed Rate Senior Guaranteed Series 1 Bond Due 2033 to “A-”, with a stable outlook
The rating expires on 22 March 2026.
Agusto & Co. hereby upgrades the rating assigned to NEN Infrastructure Limited’s (“NENI”, “the Issuer”, “the SPV” or “the Company”) ₦40.975 Billion 25% Fixed Rate Senior Guaranteed Series 1 Bond Due 2033 (“Series 1 Bond”, “the Bond” or “the Issue”) to “A-”. The rating upgrade highlights the significant strengthening of the Bauchi State Government’s fiscal position (“Bauchi State” or “the Guarantor”), driven by the beneficial effects of fuel subsidy reform and higher crude oil prices and production levels, which boosted the pool of funds shared by the three tiers of government in 2024. The rating also reflects the continued adherence to the Federal Irrevocable Standing Payment Order (ISPO), which authorises the monthly deduction of ₦757.6 million from Bauchi State’s (“the State” or “the Guarantor”) share of centrally collected revenue, along with a Local ISPO of ₦200.9 million from the State’s Internally Generated Revenue, both of which are allocated to fulfill the bond obligations.
NEN Infrastructure Limited (NENI) is a private limited liability company incorporated in September 2023 as a special purpose vehicle (SPV) to raise funds from the debt capital market for infrastructure development in Bauchi State. The Company employs the Build-Operate-Transfer (BOT) and other public-private partnership (PPP) models to deliver critical infrastructure and promote sustainable development in the State.