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 Agusto & Co. affirms “Bbb+” rating and attaches a stable outlook assigned to TAK Agro Plc’s ₦15 Billion Bond

Rating Release

 Agusto & Co. affirms “Bbb+” rating and attaches a stable outlook assigned to TAK Agro Plc’s 15 Billion Seven-Year 16.49% Fixed Rate Senior Secured Bond Due 2026.

This rating expires 30 September 2020.

The rating assigned to TAK Agro Plc’s ₦15 Billion 16.49% Seven-Year Fixed Rate Senior Secured Bond Due 2022 (“Series 1”, “the Bond” or “the Issue”) mirrors the standalone rating of TAK Logistics Limited (“TAK Logistics”, “the Sponsor” or “the Obligor”), which is rated Bbb+ by Agusto & Co.  The Sponsor irrevocably and unconditionally pledges its operating cash flow as the primary source of repaying the Bond obligations. In addition, we have considered the funds set aside in a Cash Reserve Account (“Reserve Account”) as a form of security arrangement for the Issue.

The Series 1 Bond was issued on 15 November 2019 to finance the Sponsor’s capital expansion through the acquisition of 250 new trucks. Both the amortised principal portion and the fixed rate coupon are payable semi-annually in arrears over the seven-year tenor of the Bond from the operating cash flow of the Sponsor.

The opinions expressed in this rating release do not represent investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.

 

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.