Axxela receives positive credit rating

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Axxela Limited, sub-Saharan Africa’s power 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).

The company was also accorded stable outlook even as the ratings is valid till September 2019.

The ratings are integral to Axxela’s strategic diversification plans of gas supply and trading, and the build out of power and virtual pipeline infrastructure.

According to a statement, the initiative further signifies the solid commitment from financial institutions to support the sustained growth and development of the Nigerian gas and power sector.

The gas firm achieved the credit ratings based on certain considerations including its leading position in the Nigerian natural gas distribution market, with the largest gas distribution capacity; it’s position which is strengthened by strategic partnerships, long term distribution arrangements, and strong relationship with technical partnership; and embarking on several gas infrastructure developments which are expected to be delivered in the short-medium term.

Commenting on the rating, the Chief Executive Officer, Axxela Limited, Bolaji Osunsanya, was quoted to have said in the statement that: “As we implement a dynamic and focused strategy of developing high yield portfolio investments across the gas and power value chain, we are pleased with our favourable initial rating which will bolster investor confidence in our day-to-day operations and mid-long term strategy.”

Osunsanya added: “With an upturn in gas exports, and industries requiring a cleaner, cost-efficient, and environmentally-friendly energy source, natural gas is now at the fore of global energy conversations. We now look forward to delivering on our commitments, and celebrating the successes of 2019.”

Axxela is a Helios Investment Partners LLP portfolio company, and a designated natural gas shipper on the West African Gas Pipeline (WAGP). It is also the pioneering private sector-led developer of natural gas distribution in Nigeria, delivering at peak, 80 million standard cubic feet (scf) 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.