Rating Release

Agusto & Co. hereby affirms the “Aa” rating assigned to Family Homes Sukuk Issuance Program Plc’s (“the Issuer” or “FHSIP”) ₦10 billion 13% Series I Ijara Lease Sukuk due 2028 (“the Issue” or “the Sukuk”) with a stable outlook 

The rating expires on 15 July 2027 

Agusto& Co. hereby affirms the “Aa” rating assigned to Family Homes Sukuk Issuance Program Plc’s (“the Issuer” or “FHSIP”) ₦10 billion 13% Series I Ijara Lease Sukuk due 2028 (“the Sukuk” or “the Issue”). The Issuer is a non-operating special purpose vehicle established to issue sukuk securities in the debt capital market and pass on the proceeds to Family Homes Funds Limited (“FHFL” or “the Sponsor”) to finance the construction of affordable housing projects across the country. The rating mirrors FHFL’s “Aa” long term rating from Agusto & Co., which reflects the Sponsor’s good asset quality upheld by the credit enhancement structures underpinning its credit facilities, including ISPOs for exposures to state governments, enabling payments to be deducted directly from statutory allocations. The Sponsor’s rating is also supported by the its strong capitalisation, low leverage, good liquidity and funding profile and strong support received from the FGN via the injection of capital in the form of grants. However, the rating is constrained by the vulnerability to political interference and bureaucratic delays arising from the absence of an enabling statute protecting FHFL’s operational independence and low profitability relative to other government-backed developmental institutions.