Odu’a Investment Company Limited has received a national scale long-term issuer rating of AA-(NG) and a short-term issuer rating of A1+(NG) from GCR Ratings, with a Stable outlook, in recognition of its strong investment portfolio, conservative financial profile and disciplined capital management.
The rating, according to the company, represents a significant endorsement of its financial strength, quality of assets and governance practices, as the Group positions itself for further expansion across strategic sectors of the economy.
Group Chairman, Dr Tola Kasali, in a statement signed by Victor Ayetoro, Head, Branding & Communications described the rating as a strong validation of Odu’a’s five-decade legacy of prudent stewardship and value creation.
He said the rating affirmed the resilience of the company’s investment model, which combines strategic holdings in listed equities with increasing contributions from its operating subsidiaries.
Kasali noted that Odu’a’s strong rating was supported by its conservative leverage, robust liquidity and quality underlying assets. He also highlighted the company’s governance structure, stressing that the Group has maintained its independence and professional management despite being owned by state governments.
The Group Managing Director, Mr Abdulrahman Yinusa, said the rating followed a rigorous assessment by GCR and confirmed the strength of Odu’a’s liquidity position.
According to him, the Group has liquidity coverage of approximately 2x over the next 24 months, supported by a listed investment portfolio valued at more than N80 billion and N4.8 billion in unencumbered cash.
Yinusa explained that the Group’s balance sheet remains largely ungeared, adding that the approximately N3 billion bond obligation at its subsidiary, Wemabod Limited, remains comfortably within the Group’s servicing capacity.
He disclosed that Odu’a is now preparing for a major phase of strategic expansion, with plans to deploy up to $200 million over the next three to five years into hospitality, real estate, logistics and power.
He said the investments are designed to diversify the Group’s portfolio, strengthen its operating businesses and create sustainable long-term earnings.
“The Stable outlook provides a solid platform for us to pursue these growth initiatives while maintaining the conservative financial discipline that has defined Odu’a over the years,” Yinusa said.
GCR, in its assessment, identified the quality of Odu’a’s portfolio as a key positive factor, citing the liquidity of its listed investments and stable cash flows generated by its operating subsidiaries.
The rating agency noted that most of the Group’s equity investments are publicly listed, providing transparent valuations and access to active secondary markets.
GCR also identified Odu’a’s low leverage as a major strength, noting that the Group maintained an largely ungeared balance sheet over most of the review period and demonstrated strong debt-servicing capacity.
Its assessment further showed that the Group’s liquidity sources exceed projected uses by approximately two times over the 24-month horizon, even after a 25 per cent stress test was applied to listed holdings to account for risks associated with frontier markets.
On governance, GCR assessed Odu’a’s structure as neutral to the rating, citing its well-defined corporate structure, appropriately constituted boards, transparent financial reporting, consistent clean audit opinions and history of dividend payments.
The AA-(NG) rating and Stable outlook therefore provide Odu’a Investment Company with a stronger platform to pursue its expansion strategy while preserving the financial prudence and governance standards that have characterised the Group’s operations over the years.
