Rating Release

Agusto & Co. hereby affirms the “Bbb-” rating assigned to Eat & Go Finance SPV Plc’s ₦11.5 Billion Bond

The rating expires on 31 December 2023.

Agusto & Co. hereby affirms the “Bbb-” rating assigned to Eat & Go Finance SPV Plc’s (“Eat & Go Finance SPV”, “the Issuer”, or “the Company”) ₦11.5 Billion 14.25% Seven Year Fixed Rate Senior Unsecured Bond Due 2026 (“Series 1 Bond”, “the Bond” or “the Issue”) under the ₦15 Billion Bond Issuance Programme. The assigned rating mirrors the standalone rating of Eat ‘N’ Go Limited1 (“Eat ‘N’ Go” or “the Sponsor”), which has irrevocably and unconditionally pledged its operating cash flow as the primary source of repaying the Bond obligations. The recovery prospect of the Series 1 Bond is further enhanced by the portion of the net proceeds being held in a Debt Service Reserve Account2 (“Reserve Account” or “DSRA”), which is sufficient to cover at least a semi-annual coupon and principal repayment obligation.

The Series 1 Bond was issued on 17 December 2019 to finance the Sponsor’s retail store expansion projects as well as to refinance its existing bank loans. The Series 1 Bond attracts a fixed coupon rate of 14.25% and will mature on 17 December 2026. Principal redemption started on 16 June 2022 following the expiration of the twenty-four months moratorium. The Series 1 Bond draws its credit quality from the Sponsor, whose operating cash flows have been pledged toward meeting both coupon and principal obligations. In addition to the pledged operating cash flows, the Series 1 Bond is equally backed by the funds held in the Debt Service Reserve Account, which represented 10% of the net bond proceeds. The balance in the DSRA is available to augment shortfalls in the Debt Service Account (“DSA”) on any scheduled payment date.

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”