September 6, 2019 (Lagos, Nigeria) — Axxela Limited ( “Axxela” or the “Company”), Africa’s preferred fast-growing gas & power portfolio company has announced the upgrade of its corporate credit rating by Agusto & Co., one of Nigeria’s foremost rating agency, from “Bbb” to “Bbb+” with a Positive Outlook.
Commenting on the upgrade, the Chief Financial Officer of Axxela Limited, Timothy Ononiwu said “This rating upgrade reflects Axxela’s financial and operational stability particularly as we expand our footprint across Nigeria and West Africa. This outcome recognizes the progress we have made as an organisation thus far, and we are excited about our future. We remain committed to providing gas and power solutions for businesses and industries across Africa whilst delivering value to our stakeholders. Interestingly, our new rating profile is symbolic as we prepare to embark on a debt issuance program to drive our growth and development projects”.
Speaking on the new achievement, the Chief Executive Officer of Axxela Limited, Bolaji Osunsanya remarked that Axxela continues to deliver exceptional performance across all the markets in which it operates with an intense focus on excellence and innovative service delivery. According to Agusto & Co., the upgrade is underpinned by the Company’s acceptable profitability, adequate working capital, satisfactory cash flow, moderate leverage and an experienced management team. Furthermore, the rating takes into cognizance Axxela’s revenue diversification initiatives resulting in gas trading in neighbouring West African countries, as well as the ownership of the Company – Helios Investment Partners – a private equity firm with over $3.6 billion funds under management. The rating agency also noted that it expects the Company’s financial performance to improve, leveraging its growing and expanding customer base in the energy sector, as well as the positive impact of gas exports.
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 scfd 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.