Agusto assigns “A” rating to Odu’a Investment with stable outlook

Agusto & Co, a leading credit rating agency in Nigeria, has assigned an “A” rating to Odu’a Investment Company Limited (OICL), with a stable outlook.

The rating reflects OICL’s diversified portfolio of investments across key sectors of the Nigerian economy, the diverse backgrounds and vast experience of the board and management team, as well as the efforts that have been made to reposition the business in recent years.

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According to Agusto & Co, “the assigned rating reflects the company’s good operating cash flows supported by its diversified income streams and portfolio of subsidiaries and associates, adequate working capital upheld by its lean operating structure and low leverage on account of its strong equity funding buffer”.

Otunba Bimbo Ashiru, the group chairman said, “We are walking the talk to be a world-class conglomerate for the benefit of our owner states, and other stakeholders”.

Over the past three years, OICL has implemented a range of strategic initiatives, including governance structure enhancements, asset optimization, and the expansion of investments and profitability. These actions have aligned the company with current market trends, demonstrating a commitment to staying competitive.

Notably, OICL transferred the management of its investment properties to Wemabod Limited, transforming it into a full-service property management, property development, and facility management subsidiary. Additionally, the company inked a joint venture (JV) agreement to remodel and upgrade the Premier Hotel in Ibadan into a five-star hotel.

“This is the result of the consistent hard work of the past few years of the Board, Management and Staff. We are really excited,” Adewale Raji, group managing director said.

The rating will further aid the implementation of OICL’s growth strategy which will be funded through equity, debt and joint venture partnerships.

In a statement released by the firm, it noted that, “… the core of its strategy are plans to leverage its substantial property portfolio to develop new residential, commercial and hotel assets notable amongst which is the Lagos Airport Hotel in Ikeja, Lagos.”

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It was also noted in a statement that that the firm has plans to create new businesses across high-growth sectors of the Nigerian economy including Oil and Gas, Power, ICT/ Digital, Agriculture, Transportation and Logistics, and Healthcare.