Geregu Power pays 8th coupon, part principal on N40.1bn bond

GEREGU Power Plc has paid the 8th coupon and part of the principal on its N40.085 billion Series 1 Fixed Rate Bond.

The power generation company disclosed the payment in a notice to the Nigerian Exchange Limited and the investing public on Thursday.

Geregu said the payment, made to the bond trustees, covered its interest obligation as well as a portion of the principal amount outstanding under the bond.

The Series 1 bond was issued as part of the company’s Bond Issuance Programme, with a total value of N40.085 billion.

The latest payment comes as Geregu continues to address legacy matters that pre-date the current board, assuring investors that the issues would not affect its ability to meet its financial obligations.

“The Board of Directors reaffirms its commitment to all stakeholders as part of its ongoing dedication to preserving shareholder value and upholding the highest standards of corporate governance,” the company said.

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Geregu also acknowledged the engagement of bondholders, the Securities and Exchange Commission, NGX and the Nigerian Electricity Regulatory Commission as efforts to resolve the outstanding matters continue.

The company reaffirmed its commitment to fulfilling all obligations under the bond and complying with applicable capital market regulations.

For investors, the payment is significant because coupon and principal repayments are key indicators of a bond issuer’s ability to meet its fixed-income obligations.

While the coupon represents interest paid to bondholders, principal repayment involves returning part of the original amount borrowed.

By making the eighth coupon payment alongside part repayment of principal, Geregu has indicated that it remains current on the obligations attached to the N40.085 billion bond.

Geregu had earlier defaulted on payment of the 8th coupon. The default followed recent ownership shifts and questions surrounding N31bn in restricted cash.
Chairman of Geregu Power Plc, Senator Abdul’aziz Abubakar Yari, personally funded the clearance of the company’s outstanding bond obligation, reports said.

In a statement released by his Media Office, Yari said he personally stepped in to protect the company, reassure bondholders and safeguard shareholder value while bosting efforts to strengthen Nigeria’s power sector under President Bola Tinubu’s Renewed Hope Agenda.

“As a stakeholder and Senator of the Federal Republic of Nigeria, I consider it my duty to do everything within my capacity to ensure the success of the Renewed Hope Agenda. I commend Mr President for his support for the power sector,” Yari said.