Geregu Power Plc has defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, missing both its eighth semi-annual coupon obligation and its scheduled fourth principal bullet repayment, according to an updated listing status published by FMDQ Securities Exchange.
The default marks a notable escalation in debt service friction for one of Nigeria’s premier listed power generation companies, arriving as the firm’s operational cash flows have collapsed alongside a sharp deterioration in earnings.
The 7-year bond, issued on July 28, 2022, at a fixed rate of 14.50 percent under the company’s N100 billion debt issuance programme, was structured with semi-annual coupon distributions and amortising principal repayments running through to a July 28, 2029 maturity.
The missed payment therefore represents a breach midway through the bond’s life, rather than at maturity, raising fresh questions about Geregu Power’s near-term liquidity position.
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At issuance, the offering stood out as the largest corporate bond sale by a Nigerian power generation company and drew heavy demand from pension fund administrators, banks, asset managers and insurers, a reflection of the confidence investors placed in a business seen as a cash-generative anchor of the country’s electricity market. That confidence is now being tested directly.
FMDQ’s listing status update, which tracks compliance by issuers on its platform, flagged the missed coupon and principal instalment without elaborating on the company’s remediation timeline or discussions with bondholders.
Neither the amount outstanding on the missed obligations nor any grace-period arrangement was disclosed in the notice.
More details later…….
