Geregu Power Chairman funds N6.03bn bond to shield investors from dispute
Geregu Power Plc Chairman Senator Abdul'aziz Yari personally provided N6.03 billion to settle the company's outstanding bond obligation, aiming to protect bondholders and maintain investor confidence. In a signed statement, Yari stressed the payment is not an admission of personal liability and that the obligation originated under previous owners and management before the current board took over. He said talks continue with the former owners to clarify the circumstances and arrange reimbursement of the funds he advanced.
The bond in question is Geregu Power's N40.09 billion Series 1 Senior Unsecured Bond, issued on July 28 2022 under a N100 billion multi-instrument programme, carrying a 14.5% coupon and set to mature on July 28 2029. Nairametrics reported on August 9 that the N6.03 billion payment had been made, ending weeks of uncertainty. Following the default, rating agency Agusto & Co withdrew the "A-" rating previously assigned to the bond, citing insufficient reliable information to sustain an opinion.
Yari said his immediate goal is to keep the bond issue from unsettling investors or disrupting operations, while the broader dispute remains unresolved. He emphasized the company's commitment to fair treatment or reimbursement of the advanced funds and to establishing dependable arrangements for future bond obligations.
What should investors watch for: the outcome of reimbursement talks with the former owners, any impact on Geregu Power's financials and credit rating, and whether the company can restore market confidence ahead of the bond's 2029 maturity.