GEREGU POWER IN DEBT TROUBLE After Defaulting On ₦40.09BN BOND
Geregu Power Plc has defaulted on the eighth coupon payment and fourth bullet principal repayment of its ₦40.09 billion Series 1 senior unsecured bond, according to an updated listing status by FMDQ Securities Exchange.
The development raises fresh concerns over the company’s ability to meet its debt obligations as it continues to pursue expansion projects in Nigeria’s challenging power sector.
The bond, issued on July 28, 2022, has a seven-year tenor and carries a 14.5 per cent coupon, with maturity scheduled for July 28, 2029.
FMDQ, in its updated listing details, stated: “Credit Default in the 8th coupon payment and 4th bullet principal repayment.”
The Series 1 bond was issued under Geregu Power’s ₦100 billion multi-instrument issuance programme and ranks pari passu with the company’s other unsecured and unsubordinated indebtedness.
Geregu had raised the funds to support its financing requirements and planned expansion projects.
GCR WARNED OF REFINANCING RISKS
The default comes against the backdrop of earlier concerns raised by Global Credit Rating, which assigned the bond an A(Na) national-scale long-term rating at issuance.
GCR had identified liquidity challenges in Nigeria’s power sector, Geregu’s concentrated customer base and potential pressure on its leverage metrics as key risks.
The rating agency also warned that delays in project execution could increase the company’s refinancing risks and put further pressure on its leverage.
It had further identified aggressive dividend payments, alongside weaker-than-expected earnings resulting from production losses, as possible factors that could trigger a downgrade.
₦9 DIVIDEND APPROVED
The latest development is also coming after Geregu’s board approved a ₦9 dividend per share earlier this year.
The bond default could therefore place renewed attention on the company’s cash flow management, debt-servicing capacity and funding strategy as investors assess its financial position.
OTEDOLA’S ₦1.088TRN EXIT
The development comes about eight months after businessman Femi Otedola, the company’s former chairman, sold his majority stake in Geregu Power for ₦1.088 trillion in December 2025.
With Geregu now officially listed as being in default on the bond, investors and bondholders will be watching closely for the company’s response and its plans to address the outstanding obligations.
