The Board of Geregu Power Plc, on Thursday said it has paid the 8th coupon and part principal repayment due under its ₦40.085 billion Series 1 Fixed Rate Bond issued under a Bond Issuance Programme, to the Trustees.
Investdata News recalls that Geregu Power’s seven-year Series 1 Senior Unsecured Bond issued in July 28, 2022 at a fixed coupon rate of 14.5%, which was rated A(NGR) by Global Credit Rating (GCR), fell into technical default class when the issuer missed its 8th coupon payment and fourth scheduled principal repayment. This resulted from the company’s severe cash flow challenge in the first half of 2026, when Geregu’s revenue tumbled by 78.71% to ₦18.65 billion, just as net profit suffered an 88% slump, all of which resulted from the company’s decision to shutdown operations for a ₦61.47 billion turbine maintenance in the second quarter of the year. The situation was made worse by what has been termed grid turbulence.
Proceeds of the Senior Unsecured bond (meaning holders have a general claim on assets but no specific collateral), with a semi-annual (coupons and amortizing principal instalments) was to support the acquisition of the 434-megawatt Geregu 1 power plant.
In a notice through the Nigerian Exchange platform, the company reaffirmed its ongoing dedication to preserving shareholder value and upholding the highest standards of corporate governance.
The statement by The Structure HQ, Company Secretary, expressed readiness to continue engaging “constructively with relevant parties to resolve legacy matters predating the current Board and confirms that this process will not impact the company’s ability to meet its obligations.
The directors appreciated the Bondholders, the Securities and Exchange Commission, the Nigerian Exchange Limited, and the Nigerian Electricity Regulatory Commission for their continued engagement and understanding while this matter was being resolved and reaffirms its commitment to full compliance with its obligations.
Geregu Power’s Chairman, Senator Yari, is said to have personally funded and cleared the outstanding ₦6,026,093,363.10 obligation as a way of protecting bondholders, thereby restoring investor confidence.
