Geregu Power Plc has paid N6.03 billion owed investors under its N40.09 billion Series 1 Senior Unsecured Bond, weeks after missing scheduled interest and principal payments, sources familiar with the transaction said.
The payment, which totals N6,026,093,363.10, offers some relief to investors and may ease concerns in the capital market over the company’s debt obligations.
Sources confirmed the payment, although Geregu Power had not publicly announced it as of last night.
The development followed FMDQ Securities Exchange’s classification of the seven-year bond as being in credit default after the company failed to pay its eighth semi-annual coupon and fourth scheduled principal repayment. Issued on July 28, 2022, at a fixed 14.5 per cent interest rate under Geregu Power’s N100 billion debt programme, the bond matures on July 28, 2029.
The default raised concerns over Geregu’s liquidity and ability to meet its obligations amid weaker financial results.
Its unaudited results for the six months ended June 30, 2026, showed revenue fell 78.7 per cent year-on-year to N18.66 billion from N87.63 billion. Profit after tax dropped 88 per cent to N2.54 billion from N20.27 billion. Second-quarter revenue fell sharply to N419.1 million from N55.87 billion.
The weak results were linked mainly to lower generation and operational constraints, including a major turbine maintenance programme that affected capacity and cash flow. Geregu reportedly spent N61.47 billion on the programme.
Agusto & Co later withdrew its A-minus rating for Geregu and the bond, citing the default and concerns over the reliability of information used for its assessment.
Geregu said it had begun a review of its financial obligations and records, including transactions, liabilities, operational commitments and financing arrangements, while promising an orderly resolution. It also replaced its chief executive.
The latest payment is significant because N40.09 billion is the bond’s total issue size, not the amount due.
For investors, the payment may reduce pressure over the outstanding obligations, but questions remain about Geregu’s cash generation, operational recovery and financial statements.
