Sources: Geregu Has Paid N6bn to Bond Investors after Default

Geregu Power Plc has made a payment of N6.03 billion to bond investors as part of its N40.09 billion Series 1 Senior Unsecured Bond, following a default on scheduled interest and principal payments, according to sources familiar with the transaction. The payment, totaling N6,026,093,363.10, provides relief to investors and may alleviate concerns in the capital market following the company's failure to meet its debt obligations.

Geregu Power had yet to make a public announcement about the development as of the time of this report. The bond, issued on July 28, 2022, with a fixed interest rate of 14.5%, is due to mature on July 28, 2029, and was classified as in credit default by FMDQ Securities Exchange following the non-payment of its eighth semi-annual coupon and fourth scheduled principal repayment.

The default raised concerns about Geregu Power's liquidity position and its ability to service its obligations amid a sharp decline in financial performance. The company's unaudited results for the six months ending June 30, 2026, showed revenue dropping by 78.7% year-on-year, while profit after tax fell by 88%. The decline was attributed to reduced generation, operational constraints, and a major turbine maintenance programme that affected generating capacity and cash flows.

The bond crisis deepened when credit rating agency Agusto & Co downgraded Geregu Power and its bond to A minus, citing the payment default and concerns over the reliability of financial statements. Geregu Power has since commenced a review of its financial obligations and corporate records and replaced its CEO. The payment of the N40.09 billion bond represents a significant development in Nigeria's fixed income market, as it occurred before the instrument's 2029 maturity date.