Geregu Power pays N6 billion owed investors on N40.09 billion bond

Geregu Power Plc has paid the sum of N6 billion (N6,026,093,363.1) owed to investors on its N40.09 billion Series 1 Senior Unsecured Bond, ending weeks of controversy over its default.

While the company has not officially announced this, sources close to the matter confirmed the development to Nairametrics.

The default, which Nairametrics first reported on August 9, had drawn criticism from across the capital market, with many analysts weighing implications for investor confidence in the corporate bond market.

Meanwhile, as of the time of filing this report, the status of the company’s bond remains ‘default’ on the FMDQ website.

What they are saying

Earlier in its response to the issue, Geregu Power reassured shareholders, investors, and regulators of its commitment to sustain the business.

• “The Company considers it important to reassure its shareholders, investors, regulators and the general public that it remains fully committed to the task of generating power for its consumers,” the company said in a statement.

It added that the current Board and Management had undertaken “a comprehensive review and reconciliation of the Company’s transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation” since assuming responsibility for the company’s affairs.

The company said it “remains actively engaged with relevant stakeholders and advisers regarding the resolution of the various challenges” and is “committed to achieving an orderly and mutually beneficial outcome,” while pledging continued transparency and updates on material developments.

Backstory

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.

• On its website, FMDQ Securities flagged Geregu’s Series 1 bond status as “credit default in the 8th coupon payment and 4th bullet principal repayment.”
• The default follows a sharp slowdown in operational cash flows for the generating company during recent quarters, driven by a collapse in both revenue and profitability.
• As a fallout from that, rating agency Agusto & Co withdrew the “A-” credit rating assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond.

Aside from the downgrade, Agusto & Co said it was also stepping away entirely, saying it cannot rely on Geregu Power’s financial reports right now.

What you should know

Geregu was among five power generation companies that signed settlement agreements with Nigerian Bulk Electricity Trading Plc, with the combined negotiated settlement amount for the five companies put at N827.16 billion.

Nairametrics reported that Geregu Power’s revenue fell sharply in the first half of 2026 amid major turbine maintenance, while the company’s earnings weakened significantly.

Revenue fell 78.7% to N18.66 billion from N87.63 billion, while profit after tax collapsed 87.6% to N2.50 billion from N20.28 billion.

The revenue and earnings crash stands in sharp contrast to the company’s own guidance earlier in the year, when it had forecast Q1 2026 revenue of N57.11 billion, above the N31.75 billion recorded in Q1 2025, alongside projected PAT of N12.02 billion, also above the prior year’s N10.43 billion.