The board of Geregu Power Plc, a Nigerian power generation company (GenCo), on Thursday assured the country’s investment community of its commitment to resolving the various challenges confronting it.
This follows media reports of the company’s default in repayment obligation regarding its seven-year N40 billion bond issued on July 28, 2022, at a fixed rate of 14.50 percent under a N100 billion debt issuance programme, with semi-annual coupon distributions and amortising principal repayments and expected to mature on July 28, 2029.
In a notice on the Nigerian Exchange portal, Geregu Power whose majority stake was recently acquired by Senator Abdulazeez Yari, former governor of Zamfara State from Mr. Femi Otedola, chairman and core investor in First Holding Company, acknowledged the concerns among stakeholders, including regulators following the reports, following which it is actively engaged with relevant stakeholders to resolve the various challenges and ensure “an orderly and mutually beneficial outcome.”
The statement by The Structure HQ, its company secretary, said discussions are ongoing between Geregu Power Plc with the various parties, assuring that “the company will continue to act in good faith in fulfilling its responsibilities.”
While reassuring shareholders, investors, regulators and the general public of its full commitment “to the task of generating power for its consumers,” company expressed the commitment of its board and management “to transparency, responsible corporate governance and constructive engagement with all stakeholders.
“Since assuming responsibility for the Company’s affairs, the current board and management have undertaken a comprehensive review and reconciliation of the Company’s transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation. This process is aimed at ensuring transparency, accuracy and prudent financial management.”
