Abdulaziz Yari's Geregu Power defaults on N40 billion bond
Geregu Power Plc has defaulted on a ₦40 billion bond following a debt-financed takeover by MA'AM Energy Limited. The company cited a costly turbine overhaul and significantly lower-than-projected revenue as primary reasons for the financial shortfall.
Why it matters
This default highlights the financial volatility within the Nigerian energy sector and the risks associated with debt-financed corporate acquisitions.
Geregu Power Plc has defaulted on the ₦40.09 billion bond it issued four years ago, missing both a coupon payment and a scheduled principal repayment eight months after Senator Abdulaziz Yari's MA'AM Energy Limited bought control of the company in a $750 million debt-financed takeover.
FMDQ Securities Exchange, which lists the bond, has flagged the instrument as in credit default on its eighth coupon payment and fourth bullet principal repayment. Nairametrics reported the updated listing status on Sunday.
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