GCR upgrades Axxela’s issuer ratings
GCR Ratings has upgraded the national scale long-term and short-term issuer ratings of Axxela Limited, a leading sub-Saharan Africa gas and power solutions company, to A(NG) and A1(NG), from A-(NG) and A2(NG), with a positive outlook.
In a statement, Axxela said the agency also upgraded Axxela Funding 1 Plc’s bond programmes.
The N16.4bn Series 1 senior unsecured bond was raised to A(NG) from A-(NG), while the N11.5bn Series 1 senior secured bond moved to A(NG)(EL) from A-(NG)(EL).
According to the statement, GCR said the upgrades reflected Axxela’s above-budget earnings performance, improved free cash flows, and a significant strengthening in leverage metrics.
The agency had noted that the company’s sustained earnings growth, which reached a new peak in 2024, was driven by favourable currency translation, tighter cost controls, and scale efficiencies.
Group Chief Executive Officer of Axxela, Timothy Ononiwu, described the development as a reaffirmation of the company’s strategy and operational strength.
“This rating reaffirms our sound strategy, operational resilience, prudent financial management, and execution excellence. Buoyed by this upgrade, we are even more determined to scale our infrastructure footprint, deepen partnerships, deliver cleaner energy solutions that power Nigeria’s industries and communities, and extend such to the West African region,” Ononiwu said.
The company said the latest upgrade builds on its consistent track record, following the recent uplift of its corporate credit rating by Agusto & Co. from ‘A’ to ‘Aa-’, with a stable outlook.
Over the past five years, Axxela said it has demonstrated financial discipline, strategic execution, and a well-diversified customer base across multiple sectors, consolidating its position as a leading private sector provider of gas and energy solutions in Nigeria and West Africa.
Axxela, co-owned by Helios Investment Partners and Sojitz Corporation, is the pioneer private sector developer of natural gas solutions and captive power generation in Nigeria.
The company is a designated natural gas shipper on the West African Gas Pipeline and a member of the West African Power Pool, delivering natural gas to industrial and commercial customers through a network of over “400 kilometres “ pipelines.
