Rating Release

Agusto & Co. hereby affirms the “A-” rating assigned to FMN Financing 1 PLC’s (“the Issuer”) ₦46 billion 3-Year 14.5% Series 1 Fixed Rate Senior Unsecured Bond Due 2026 (“Series 1 Bond”, “the Bond” or “the Issue”) under the ₦200 billion Bond Issuance Programme

The rating expires on 8 May 2026. 

Agusto & Co. hereby affirms the “A-” rating assigned to FMN Financing 1 PLC’s (“the Issuer”) ₦46 billion 3-Year 14.5% Series 1 Fixed Rate Senior Unsecured Bond Due 2026 (“Series 1 Bond”, “the Bond” or “the Issue”) under the ₦200 billion Bond Issuance Programme. The rating reflects the standalone credit profile of Golden Penny Foods Limited (“GPFL”, “the Group” or “the Sponsor”), rated “A-” by Agusto & Co. The Sponsor’s rating underscores its strong profitability, liquidity and cash flow profiles, supported by robust pricing power and market leadership in the domestic flour industry. GPFL’s rating also considers the potential revenue and cost synergies to be derived from the completed corporate restructuring. Nonetheless, the issue rating is moderated by the Group’s persistent short-term financing challenges, amid sustained inventory investments and rising intercompany receivables. The rating is also constrained by GPFL’s elevated debt profile, as well as the susceptibility of its future earnings and cash flow to commodity price risks due to its reliance on imported wheat.

As part of its restructuring initiative, Flour Mills of Nigeria PLC (FMN) was delisted from the Nigerian Exchange (NGX) on 30 December 2024. Subsequently, eight different entities within the FMN Group were merged to form Golden Penny Foods Limited, an initiative designed to streamline operations by enabling GPFL to focus on its core food business, improve cost efficiency and strengthen its financial position. Following the delisting and subsequent restructuring, FMN’s existing bonds were transferred to a special purpose vehicle – FMN Financing 1 PLC, with Golden Penny Foods Limited Group as the Sponsor.