Geregu Power Plc has confirmed the payment of the eighth coupon and part of the principal due under its N40.08 billion Series 1 Fixed Rate Bond.
The company disclosed this in a notice filed with the Nigerian Exchange Limited on August 20, and signed by its company secretary, StructureHQ Limited.
Geregu Power said the funds due to bondholders had been remitted to the designated trustees under the bond programme.
“The Board of Geregu Power Plc hereby discloses to Nigerian Exchange Limited and the investing public that the 8th coupon and part principal repayment due under the Company’s N40.085 billion Series 1 Fixed Rate Bond have been paid to the Trustees,” the company stated.
The power generation company reaffirmed its commitment to stakeholders, saying it remained focused on protecting shareholder value and upholding strong corporate governance standards.
It also said it was engaging relevant stakeholders to resolve legacy issues that predated the current board, adding that the issues would not affect its ability to meet future financial obligations.
The confirmation follows reports that the company had paid about N6.03 billion owed to investors under the bond, ending weeks of uncertainty over the missed payment.
The default had raised concerns in the capital market over its potential impact on investor confidence in Nigeria’s corporate bond market.
The bond was issued on July 28, 2022, under Geregu Power’s N100 billion multi-instrument issuance programme. It has a seven-year tenor, a fixed coupon rate of 14.5 per cent and is scheduled to mature on July 28, 2029.
Before the payment was made, FMDQ Securities Exchange had flagged the instrument as being in default following the non-payment of the eighth coupon and fourth bullet principal repayment.
The development also affected the company’s credit rating, as Agusto & Co withdrew its “A-” rating previously assigned to Geregu Power and the Series 1 Senior Unsecured Bond.
The rating agency said the withdrawal was triggered by the default and its inability to obtain sufficient reliable information to maintain a rating opinion on the company.
