Geregu Power Pays N6bn to Bond Investors After Default

Geregu Power Plc has made a payment of N6,026,093,363.10 to bond investors under its N40.09 billion Series 1 Senior Unsecured Bond, following a default on scheduled interest and principal payments. This payment comes weeks after the company failed to meet its debt obligations, which raised concerns in the capital market.

The bond, issued on July 28, 2022, at a fixed interest rate of 14.5%, is set to mature on July 28, 2029. The company’s financial performance has deteriorated, with a reported revenue drop of approximately 78.7% year-on-year for the six months ending June 30, 2026, and an 88% decline in profit after tax.

Contributing factors included reduced generation capacity due to a major turbine maintenance program, which cost about N61.47 billion. Following the default, Agusto & Co withdrew the A minus rating for Geregu Power and its bond, citing payment issues and concerns about the reliability of financial information.

Geregu Power has initiated a review of its financial obligations and replaced its chief executive.