Geregu Power Plc has defaulted on its N40.09 billion Series 1 Senior Unsecured Bond after missing its eighth semi-annual coupon payment and fourth scheduled principal bullet repayment, according to an updated listing status published by FMDQ Securities Exchange.
The missed obligations concern the company’s seven-year bond, issued on July 28, 2022, at a fixed rate of 14.50 percent under Geregu Power’s N100 billion debt issuance programme.
The bond was structured with semi-annual coupon payments and amortising principal repayments, with maturity scheduled for July 28, 2029.
The default occurred midway through the bond’s life rather than at maturity, raising questions about the company’s near-term liquidity position.
FMDQ’s listing status update flagged the missed coupon and principal instalment but did not provide details of a remediation timeline or discussions with bondholders.
The notice also did not disclose the amount outstanding on the missed obligations or whether a grace-period arrangement was in place.
At issuance, the bond was described as the largest corporate bond sale by a Nigerian power generation company and attracted interest from pension fund administrators, banks, asset managers and insurers.
The default comes as the company’s operational cash flows and earnings have deteriorated, testing the confidence investors placed in the business at the time of the offering.
