Establishment of a NGN 30 billion Debt Issuance Programme by Interswitch Africa One Plc
Interswitch Limited: Establishment of a NGN 30 billion Debt Issuance Programme by Interswitch Africa One Plc
Interswitch Limited (the “Sponsor” or “Interswitch”), via the incorporation of a special purpose vehicle, Interswitch Africa One PLC (“Issuer”) registered a debt issuance programme (the “Programme”) with the Securities and Exchange Commission of Nigeria (“SEC”) on 24 June 2019 to explore strategic options for its business, which may include the possibility of issuing debt securities to institutional investors and the general public.
Any issuance of debt securities under the Programme would be backed by an undertaking issued by the Sponsor in favour of the Issuer and the trustees on behalf of the bondholders, supporting all the obligations of the Issuer under the Programme. It is intended that the proceeds of any debt securities issued by the Issuer under the Programme will be passed on to Interswitch through the purchase of debt instruments issued by Interswitch. The Programme accords the Sponsor the distinct advantage of accessing the debt capital markets in Nigeria for bespoke funding needs in a timely fashion.
As part of the registration process, the Sponsor was assigned an “Aa” (stable) ratings by Agusto & Co. and is in the process of securing an additional rating from an international rating agency. The “Aa” rating was assigned on account of the healthy financial position, characterised by strong profitability, sustainable cash flows, sufficient working capital and robust balance sheet. The rating is also supported by the Sponsor’s leadership position in the Nigerian financial technology industry, strong board of directors as well as its experienced and qualified management team.