Axxela Announces Corporate and Issuer Rating Upgrade to “A-”/Stable Outlook ……. Company’s strong operating performance, portfolio diversification into West Africa and sustainable operating cashflow cited as reasons for the upgrade
July 14, 2021, Lagos, Nigeria — Axxela Limited (“Axxela”), one of sub-Saharan Africa’s leading energy solutions providers, today announced that Agusto & Co. has upgraded its ratings from “Bbb+” to “A-” with a Stable Outlook.
Following its periodic review, the rating agency upgraded Axxela’s corporate rating and the Axxela Funding 1 Plc Series 1 Bond issuer rating from their “Bbb+” ratings to “A-” ratings. The upgrades reflect the consistent improvement in Axxela’s profitability, bolstered by ongoing regional diversification of gas distribution to clients in West Africa as well as satisfactory demonstration of business sustainability, amidst global headwinds.
Commenting on this achievement, Mr. Timothy Ononiwu, Axxela’s Chief Financial Officer, said: “We appreciate Agusto & Co.’s recognition of Axxela’s strong financial and operating performance. The resulting upgrade reflects the resiliency of our business model. We remain focused on our commitment to delivering value to all our stakeholders and are well positioned to achieve our medium-term growth and expansion strategy.’’
The corporate and issuer ratings are valid until June 2022 and May 2022, respectively.
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 a peak 80 million standard cubic feet per day to over 180 industrial and commercial customers via a vast network of gas infrastructure.
With over 300km in gas pipeline infrastructure built, Axxela provides unique energy solutions primarily through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.