Geregu Power Pays Eighth Bond Coupon, Part Principal After Default Fears
Geregu Power Plc has paid the eighth coupon and part of the principal repayment on its N40.08 billion Series 1 Fixed Rate Bond, ending weeks of default fears. The confirmation came in a Nigerian Exchange Limited disclosure dated August 20, 2026, signed by company secretary StructureHQ Limited, stating that funds were remitted to the bond's trustees.
The seven-year bond, issued July 28, 2022, carries a 14.5% fixed coupon and is set to mature on July 28, 2029. Prior to the payment, FMDQ Securities Exchange had flagged the instrument as in default after the missed eighth coupon and fourth bullet principal repayment, prompting rating agency Agusto & Co to withdraw the bond's "A-" credit rating due to the default and lack of reliable information.
The payment resolves the controversy that had shaken investor confidence in Nigeria's corporate bond market and highlights Geregu Power's commitment to meeting obligations despite earlier earnings and cash-flow pressures. For bondholders, the payout restores expected returns; for the broader market, it signals that companies can work through distress when transparent.
Will this payment help rebuild trust in Nigerian corporate bonds, or will lingering concerns about Geregu Power's financial health keep investors cautious?