Rating Release
Agusto & Co. hereby affirms the “A-” rating assigned to Flour Mills of Nigeria Plc’s ₦20 billion Series 3 Bonds
The rating expires on 27 March 2024.
Agusto & Co. hereby affirms the “A-” rating assigned to Flour Mills of Nigeria Plc’s (“Flour Mills”, “FMN”, “the Issuer”, or “the Company”) ₦7.5 billion 5-Year 11.1% Fixed Rate Senior Unsecured (“Tranche B”) Bond Due 2025. The rating mirrors the standalone rating of Flour Mills, which is rated “A-” by Agusto & Co, considering that its operational cash flows have been irrevocably and unconditionally pledged as the primary source of repaying the Series 3 (Tranche B) Bond obligations. In February 2020, Flour Mills of Nigeria Plc raised two Bonds – a ₦12.5 billion 3-Year 10% Fixed Rate Senior Unsecured Bond Due 2023 (“Tranche A”) and a ₦7.5 billion 5-Year 11.1% Fixed Rate Senior Unsecured Bond Due 2025 (“Tranche B”), which are jointly referred to as the Series 3 Bonds. The Series 3 (Tranche A) Bond was fully redeemed upon maturity on 27 February 2023. The coupon rate on the outstanding Series 3 (Tranche B) Bond is payable on the twenty-seventh day of February and August over its remaining tenor, while the principal amount will be redeemed by way of a bullet repayment on 27 February 2025.
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.