Rating Release
Agusto & Co. hereby assigns an indicative “A-” rating to Sundry Foods Funding SPV PLC’s up to ₦5.5 Billion Five-Year Fixed Rate Senior Unsecured Bond Due 2028
The rating expires on 30 June 2024.
Agusto & Co. hereby assigns an indicative “A-” rating to Sundry Foods Funding SPV PLC’s (“Sundry Foods SPV”, “the SPV”, or “the Issuer”) up to ₦5.5 Billion Five-Year Fixed Rate Senior Unsecured Bond Due 2028 (“Series 2”, “the Bond” or “the Issue”) under the ₦20 Billion Bond Issuance Programme. The assigned rating mirrors the standalone “A-” rating of Sundry Foods Limited (“Sundry Foods”, “SFL”, “the Company”, or “the Sponsor”) assigned by Agusto & Co1 , as the Sponsor irrevocably and unconditionally pledges its operating cash flow as the primary source of repaying the Series 2 Bond obligations. The rating is supported by SFL’s good profitability upheld by its diverse meal offering and its wide geographical spread with footprints in 16 states in Nigeria. The rating also factors in the Sponsor’s good cashflow position based on its cash sales model of operation and its acceptable working capital.
Sundry Foods Limited is a major player in the Food Service Industry in Nigeria, operating under the brand names – Kilimanjaro, Pizza Jungle, Kiligrill and Nibbles Creamery. The Company was incorporated in 2003 and owns a total of 162 outlets (as at 31 March 2023) consisting of restaurants and bakeries and operates 16 canteens on behalf of its corporate clients.
The opinions expressed in this rating release do not represent any investment or other advice and should therefore not be construed as such. Visit www.agusto.com for further information.
