Rating Release

Agusto & Co. hereby affirms the “A-” rating to Flour Mills of Nigeria Plc’s ₦4.89 billion Bond with a stable outlook

The rating expires on 15-12-23

Agusto & Co. hereby affirms the “A-” rating to Flour Mills of Nigeria Plc’s (“Flour Mills”, “FMN”, “the Issuer” or “the Company”) ₦4.89 billion 5-Year 5.5% Fixed Rate Senior Unsecured Bond Due 2025 (“Tranche A”) and ₦25 billion 7-Year 6.25% Fixed Rate Senior Unsecured Bond Due 2027 (“Tranche B”), which are jointly referred to as the Series 4 Bonds. The rating mirrors the standalone rating of Flour Mills, especially as its operating cash flow has been irrevocably and unconditionally pledged as the primary source of repaying the Series 4 Bonds obligations.

The Series 4 Bonds were issued on 14 December 2020 to refinance the Company’s existing debt obligations. While the fixed coupon rates on the Tranche A & B Bonds are payable semi-annually (on the fourteenth day of June and December every year) over their tenors, the principal amounts will be redeemed in full by way of bullet repayments on the Bonds’ maturities in 2025 and 2027 for the Tranche A & B respectively. FMN has continued to meet payment obligations on its outstanding Bonds (including the Series 4 Bonds) as and when due. As at 31 August 2022, the Issuer had made three coupon payments amounting to ₦0.4 billion and ₦2.3 billion to the Tranche A and B Bondholders respectively with the next coupon payment due on 14 December 2022.

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.