Geregu misses N40bn bond payments, raises fresh investor concerns
Geregu Power Plc has defaulted on its N40.09 billion bond payments, missing both coupon and principal repayments. This development has raised significant concerns among investors regarding the company's liquidity and operational health.
Why it matters
As a major player in Nigeria's power sector, this default signals potential instability in the energy market and impacts investor confidence in Nigerian corporate debt.
Geregu misses N40bn bond payments, raises fresh investor concerns - Businessday NG
Geregu misses N40bn bond payments, raises fresh investor concerns
Geregu Power Plc has defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, missing both its eighth semi-annual coupon obligation and its scheduled fourth principal bullet repayment, according to an updated listing status published by FMDQ Securities Exchange.
The default marks a notable escalation in debt service friction for one of Nigeria’s premier listed power generation companies, arriving as the firm’s operational cash flows have collapsed alongside a sharp deterioration in earnings.
The 7-year bond, issued on July 28, 2022, at a fixed rate of 14.50 percent under the company’s N100 billion debt issuance programme, was structured with semi-annual coupon distributions and amortising principal repayments running through to a July 28, 2029 maturity.
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