Geregu pays N6bn owed to investors on N40bn bond after default – Report

Geregu Power Plc has 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 confirm the payment.

The payment, reportedly made on Wednesday, comes weeks after the power generation company defaultedon the eighth coupon payment and fourth bullet principal repayment on its N40.09 billion series 1 senior unsecured bond.

The bond was raised to support the company’s funding requirements and planned expansion projects.

According to FMDQ Securities Exchange, the bond was issued on July 28, 2022, under the company’s N100 billion multi-instrument issuance programme, carries a 14.5 percent coupon and is scheduled to mature on July 28, 2029.

Responding to the concerns raised, on August 13, Geregu said it was engaging relevant stakeholders and advisers concerning its N40.09 billion bond repayment obligations.

“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,” the company had said.

According to Geregu, the review is aimed at ensuring “transparency, accuracy and prudent financial management,” while discussions with relevant stakeholders and advisers on the challenges are ongoing.

Meanwhile, the default had made Agusto & Co., a pan-African rating agency, to withdraw the ‘A-‘ credit rating assigned to Geregu Power.

The credit rating agency said the withdrawal was also due to its inability to obtain sufficient reliable information to maintain an opinion on the power company’s creditworthiness.(TheCable)