October 25, 2019 (Lagos, Nigeria) — Axxela Limited ( “Axxela” or the “Company”), Africa’s preferred fast-growing gas & power portfolio company, has been assigned national scale issuer ratings of BBB+(NG) and A2(NG) in the long term and short term respectively by Global Credit Ratings (“GCR”) with the outlook accorded as Stable.
Commenting on the rating, Axxela’s Chief Executive Officer, Bolaji Osunsanya remarked: “GCR’s rating of our company is a significant indicator of our improved performance, strategic initiatives, and overall impact of our operations in providing innovative energy solutions within key economic clusters across the region. As the partner of choice, we have a formidable stable of stakeholders positioned to actualise our projects, especially within the virtual pipeline, gas processing and distribution, and embedded power spaces.”
The ratings are a continued affirmation of Axxela’s leading position as it expands its operations within the West African natural gas market, whilst also operating the largest gas distribution infrastructure in Nigeria.
Also speaking on the rating, Axxela’s Chief Financial Officer, Tim Ononiwu said: “The attainment of this rating for the second year running speaks volumes about our corporate reputation, fiscal credibility, profitability, and balance sheet optimisation, which are integral to our growth initiatives. We take immense pride in our corporate governance and fiscal responsibility, thus better positioning us to anticipate the needs of our client base and the larger market.”
GCR has accorded the aforementioned credit ratings based on the following key considerations:
- Axxela is embarking on several gas infrastructure developments which are expected to be delivered in the short-medium term.
- Axxela has reported strong revenue growth, supported by rising volumes, higher selling prices and an expanded clientele base.
- Axxela’s position is also strengthened by strategic partnerships, long term distribution arrangements, and strong relationship with technical partners.
In a related development, Axxela recently received an upgraded corporate credit rating from “Bbb” to “Bbb+” with a Positive Outlook by Agusto & Co., one of Nigeria’s foremost rating agencies.
Axxela is a Helios Investment Partners LLP portfolio company, and a designated natural gas shipper on the West African Gas Pipeline (WAGP). Axxela is also the pioneering private sector led developer of natural gas distribution in Nigeria, delivering at peak 80 million standard cubic feet per day to over 160 industrial and commercial customers via a vast network of gas infrastructure. With over 280km in gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, and Central Horizon Gas Company Limited.