Axxela Limited, a prominent player in the West African energy sector, has received a significant boost in its corporate rating, upgraded from ‘A’ to ‘Aa-‘ with a stable outlook by the renowned credit rating agency, Agusto & Co. This upgrade also extends to Axxela Funding 1 Plc’s substantial N11.5 billion and N16.4 billion bond programmes. This positive assessment underscores Axxela’s robust financial standing, its strategic investments in critical natural gas infrastructure, and its commitment to driving industrial growth within Nigeria and the broader West African region. The upgrade signifies enhanced confidence in Axxela’s ability to meet its financial obligations and reflects positively on its overall creditworthiness.
Agusto & Co.’s decision to upgrade Axxela’s rating is firmly grounded in the company’s impressive financial track record. This includes consistent profitability, moderate leverage, and efficient funding structures, all of which demonstrate Axxela’s prudent financial management. The agency also acknowledged the strategic significance of Axxela’s investments in natural gas infrastructure across key industrial hubs in Lagos, Sagamu, and Port Harcourt. These investments not only strengthen Axxela’s operational capacity but also contribute to the development of Nigeria’s energy infrastructure and support the burgeoning industrial sector. Furthermore, Axxela’s ambitious expansion plans across Nigeria and the wider West African region signal the company’s growth trajectory and its potential to become a leading energy player in the region.
Axxela’s prudent balance sheet management is a key factor contributing to the rating upgrade. The company maintains a healthy working capital position, enabling it to manage its short-term obligations effectively. Furthermore, the efficient structuring of its funding mechanisms ensures access to capital at favorable terms, enhancing its financial flexibility and resilience. This financial stability is crucial for navigating the dynamic energy landscape and pursuing strategic investments for future growth. The combination of strong financial performance, strategic investments, and prudent financial management paints a picture of a company well-positioned for sustainable growth and success.
The rating upgrade is a significant endorsement of Axxela’s strategic direction and operational efficiency. Timothy Ononiwu, Group Chief Executive Officer of Axxela, expressed his satisfaction with the recognition from Agusto & Co., emphasizing that it validates the company’s commitment to financial discipline, strategic infrastructure investments, and a long-term vision for growth. He reiterated Axxela’s focus on building a resilient enterprise that not only fosters industrial growth in Nigeria but also contributes to the region’s energy transition agenda. This commitment to sustainability positions Axxela as a responsible player in the energy sector, aligning its operations with the broader global shift towards cleaner and more sustainable energy solutions.
Yetunde Demuren, Head of Corporate Finance & Treasury Management at Axxela, highlighted the significance of the upgrade in the context of the current challenging economic climate. She views the ‘Aa-‘ rating as a testament to Axxela’s prudent capital management and robust treasury practices, demonstrating the company’s financial strength and stability. The upgraded rating places Axxela among the highest-rated corporates within Nigeria’s competitive energy sector. This distinction not only enhances the company’s credibility but also strengthens its position to attract investors and secure favorable financing for future projects.
Axxela’s future prospects appear bright, with a robust project pipeline, strong regional partnerships, and a restructured business model that positions the company for sustainable growth and increased influence within the West African energy landscape. The company’s strategic focus on expanding its footprint within the region and its commitment to sustainable development are expected to further solidify its position as a key player in the West African energy sector. This strategic vision, combined with its strong financial performance and prudent management, underscores Axxela’s potential to deliver long-term value to its stakeholders and contribute significantly to the region’s economic growth.
