Geregu Power Plc has paid N6 billion owed to investors on its N40.09 billion Series 1 Senior Unsecured Bond.
The default had drawn criticism from many analysts while rating agency like Agusto & Co withdrew the “A-”
rating assigned to Geregu Power Plc.
The 7-year bond issued on July 28, 2022, at a fixed rate of 14.50 percent under the company’s N100 billion debt issuance programme was designed with semi-annual coupon distributions and amortising principal repayments leading up to a July 28, 2029 maturity.
While market sources close to the matter confirmed the development, but the payment which may end market watchers concerns over its default has not officially been announced by the company.
Geregu Power recently responded to the investors and stakeholders concerns regarding the company’s bond repayment obligation, saying 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.
“Discussions and engagements are ongoing, and the Company will continue to act in good faith in fulfilling its responsibilities. The Board and Management remain committed to transparency, responsible corporate governance and constructive engagement with all stakeholders,” Geregu said in a statement on August 12.
Geregu had defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, missing its eighth semi-annual coupon and scheduled fourth principal repayment – a sign that the company…
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Read Full Article by Iheanyi Nwachukwu at businessday.ng
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