Geregu Power Settles ₦6bn Debt Obligation After Bond Default

Geregu Power Plc has reportedly paid the N6 billion owed to investors under its N40.09 billion Series 1 Senior Unsecured Bond, according to sources familiar with the development.

TheCable could not independently verify the payment, which was reportedly made on Wednesday, weeks after the power generation company defaulted on its eighth coupon payment and fourth bullet principal repayment.

The bond, issued on July 28, 2022, under Geregu’s N100 billion multi-instrument issuance programme, carries a 14.5 percent coupon and is scheduled to mature on July 28, 2029. It was raised to support the company’s funding needs and expansion projects.

On August 13, Geregu said its board and management were conducting a comprehensive review of the company’s transactions, liabilities, operational commitments, financing arrangements and other financial obligations.

The company said the review was aimed at ensuring transparency, accuracy and prudent financial management, while discussions with relevant stakeholders and advisers continued.

The earlier default prompted Agusto & Co. to withdraw Geregu Power’s ‘A-’ credit rating. The pan-African rating agency said the decision was also influenced by its inability to obtain sufficient reliable information to maintain an opinion on the company’s creditworthiness.