Agusto & Co. affirms the “A-” rating and attaches a stable outlook to Flour Mills of Nigeria Plc.’s (‘Flour Mills’, ‘FMN’ ‘Issuer’ or ‘the Company’) ₦10.11 billion Series 1 3-Year 15.5% Fixed Rate Senior Unsecured Bond Due 2021 (‘Series 1’) and ₦10 billion Series 2 5-Year 16% Fixed Rate Senior Unsecured Bond Due 2023 (‘Series 2’)
The rating assigned to the Series 1 & 2 bonds mirrors the standalone rating of the Issuer, as the Bonds are senior and ranks pari passu with other senior debt. In addition, the repayment of the Bonds is from the operating cash flow of Flour Mills of Nigeria Plc.
The Series 1 Bond principal is redeemable as a bullet payment on the maturity date in October 2021 while the Series 2 Bond Principal has a one-year moratorium from issue date and will subsequently be redeemed in eight semi-annual instalments until maturity of the Bond in October 2023.
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