Interswitch, Pan African integrated fintech firm has incorporated a special purpose vehicle, Interswitch Africa One Plc to register a debt issuance programme with the Securities and Exchange Commission(SEC) 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.
Information emanating from the company stated that the programme accords Interswitch the distinct advantage of accessing the debt capital markets in Nigeria for bespoke funding needs in a timely fashion.
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As part of the registration process, Interswitch 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, a strong board of directors as well as its experienced and qualified management team.