Nigerias leading gas company, Axxela Limited has been awarded favourable national scale issuer ratings of BBB+(NG) and A2(NG) in the long term and short term by Global Credit Ratings (GCR).Agusto & Co also recently revalidated Axxelas corporate credit rating as Bbb+ with a stable outlook.The ratings were ascribed due to Axxelas strategic initiatives, continued diversification of revenue sources, and robust business continuity plans.According to the GCR report, Axxelas ratings reflect its leading position within the nations natural gas distribution market, supported by long-term distribution franchises in Lagos and Port Harcourt.The report noted that other key strengths, which have underpinned the stability of earnings and cash flows, included long-term agreements with suppliers and customers, as well as a shipper license on the West African Gas Pipeline which enables Axxela supply gas to other West African countries.Axxela evidenced resilient performance in third quarter of financial year 2020, despite the COVID-19 disruptions, and reported strong revenue growth over the review period underpinned by a larger client base, rising volumes, and firmer selling prices, GCR stated.Chief Executive Officer, Axxela, Bolaji Osunsanya, noted that given the global headwinds faced by many sectors due to the pandemic, the companys rating profile reaffirms its healthy financial status and competitive position.He added that the ratings also underscored the application of environmental, social, and governance (ESG) standards across the companys sustainable business model.As an industry leader, Axxela will continue to spur wider industrialisation to develop communities and maximise shareholder value, Osunsanya said.Axxela recently became the first Nigerian midstream company to achieve a dual-listing of debt securities on the Nigerian Stock Exchange (NSE) and the FMDQ markets.The listing of the N11.5 billion Series 1 Bonds is part of a multi-year N50 billion debt issuance programme issued through a special purpose vehicleAxxela Funding 1 PLC. GCRs ratings are valid until September 2021 while Agusto rating is valid until June 30, 2021.Chief Financial Officer, Axxela, Timothy Ononiwu said the positive credit ratings further enhanced Axxelas anticipated portfolio diversification initiatives.Confidence in our companys future increases the certainty of access to capital markets, which are critical to our continued growth and midterm regional expansion strategy, Ononiwu said.He said it was commendable that the financial community continued to recognise the enterprise and steadfastness of the company.Axxela is a Helios Investment Partners LLP portfolio company, and the first privately-owned designated natural gas shipper on the West African Gas Pipeline (WAGP).Axxela is also the pioneering private sector-led developer of natural gas distribution, delivering at peak 80 million standard cubic feet daily to over 180 industrial and commercial clients via a vast network of gas infrastructure.With over 330 km in gas pipeline infrastructure, Axxela provides unique energy solutions through its subsidiaries: Gaslink Nigeria Limited, Gas Network Services Limited, Central Horizon Gas Company Limited, and Transit Gas Nigeria Limited.
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