Geregu Power Eyes N40bn Bonds For Expansion, New Assets Acquisition

Geregu Power Plc, a power generation company that 80% owned, and operated by Amperion Power Distribution Company Limited, is set to issue its Series I bonds of up to ₦40bn, Fixed Rate Senior Unsecured Bonds, under its ₦100 billion Multi-Instrument Debt Programme.

Proceeds of the Naira-denominated Fixed Rate Senior Unsecured bonds due 2029, and with a 7-year tenor, semi-annual coupon payment, and a 24-month moratorium on principal repayment, will be used to expand the plants current power generation capacity and strategic acquisition of new power assets in Nigeria.

Minimum subscription for the bond with an issuer’s and issue rating of Bbb+ by Agusto & Co., and A from Global Credit Rating, is N10m and multiples of N1m thereafter, and shall be redeemed from the issuer’s operational cashflows.

Geregu power Plc, according to notice by Arthur Stevens Asset Management Limited to its clients on Friday, is registered and domiciled at Itobe – Ajaokuta Kogi State, with corporate office in Lagos State.

The power plant was constructed by the Federal Government of Nigeria and commissioned on February 16, 2007 to generate electric power and is now 20% co-owned on behalf of the Nigerian government by the Bureau of Public Enterprise and Ministry of Finance Incorporated. The Company is principally engaged in the business of electric power generation and sale of electric power through the National Grid of the Transmission Company of Nigeria (TCN) to the Nigerian Bulk Electricity Trading Plc (NBET).  

Natural gas is transported by Nigerian Gas Company (NGC) from SEPLAT via a 135km, 24” underground pipeline in the Niger Delta at 35bar pressure and reduced to 25bar operating pressure.

The plant supplies power directly to the national grid which serves as a “power pool” to which all the power plants and load centres are connected, via the Transmission Switchyard.

The bond which has as lead Issuing House, United Capital Plc; joint issuing houses- CardinalStone Partners Limited, Comercio Partners Capital Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, iWorld Financial Services Limited, Kairos Capital Limited, Lighthouse Capital Limited, Renaissance Securities (Nigeria) Limited, UCML Capital Limited, and Vetiva Capital Management Limited, is to be listed on the FMDQ Securities Exchange Limited and/or The Nigerian Exchange Limited.