Rating Release
Agusto & Co. hereby upgrades the rating assigned to Family Homes Sukuk Issuance Program Plc’s Series II ₦20 billion Sukuk to “A+“ with a stable outlook.
The rating expires on 19 September 2024.
Agusto & Co. hereby upgrades the rating assigned to Family Homes Sukuk Issuance Program Plc’s (“the Issuer” or “FHSIP”) ₦20 billion 14% Series II Ijara Lease Sukuk due 2029 (“the Issue” or “the Sukuk”) to “A+”. The Issuer is a special purpose vehicle established to raise long-term funds from the domestic capital market and pass the proceeds to Family Homes Funds Limited (“Family Homes”, “FHFL” or “the Sponsor”) to finance the construction of affordable housing estates in Nigeria. The proceeds of the Issue were deployed to finance the development of low-cost housing projects in Kebbi, Gombe, Kano and Enugu State. The rating of the Sukuk mirrors the standalone rating of the Sponsor. The Issue repayment is supported by a duly executed Irrevocable Standing Payment Order (ISPO) authorising monthly deductions from Family Homes’ account with the Central Bank of Nigeria. However, Agusto & Co. did not consider this as an enhancement due to a shortfall in the monthly deductions from the ISPO towards settling the final obligations of the Sukuk. FHFL’s rating is upheld by good asset quality, strong capitalisation, good liquidity and funding profile and strong support received from the Federal Government of Nigeria (FGN).
