Geregu Power defaults on N40bn bond payments
Geregu Power Plc has defaulted on its N40 billion bond interest and principal payments, according to FMDQ Securities Exchange data. The company faces ongoing challenges including sector illiquidity and pressure on its leverage metrics, which were previously flagged by credit rating agencies.
Why it matters
The default highlights the financial instability within Nigeria's power sector and the risks associated with infrastructure-focused corporate debt.
Geregu Power Plc has defaulted on the eighth coupon or interest payment and fourth bullet principal repayment of its N40.09 billion series one senior unsecured bond.
This is contained in an updated listing status published by FMDQ Securities Exchange, seen on Sunday.
The bond, which was issued on July 28, 2022, has a seven-year tenor and is scheduled to mature on July 28, 2029, according to details published by the FMDQ.
The bond carries a 14.5 percent coupon and was issued under Geregu Power’s N100 billion multi-instrument issuance programme.
“Credit Default in the 8th coupon payment and 4th bullet principal repayment,” the FMDQ listing details said.
“The Series 1 bond was issued as a senior, direct, irrevocable and unsubordinated obligation of Geregu Power. It ranks pari passu with the company’s other unsecured and unsubordinated indebtedness.”
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