Geregu Power Plc has issued its first response after coming under fire regarding its default on a N40.09 billion bond obligation, assuring shareholders, investors, regulators and the general public of its continued commitment to resolving the matter.
The statement, dated August 12 and published through the Nigerian Exchange Group’s document library, is the company’s first formal public communication since FMDQ Securities Exchange updated the listing status of its Series 1 Senior Unsecured Bond to reflect a credit default on its eighth semi-annual coupon payment and fourth bullet principal repayment – a development first reported on August 9.
Geregu described the media reports as “recent online publications raising concerns regarding the Company’s bond repayment obligations” and said it considered it important to respond directly.
The company disclosed that since the current Board and Management assumed responsibility for the company’s affairs, they have undertaken what it described as “a comprehensive review and reconciliation of the Company’s transactions, liabilities, operational commitments, financing arrangements, financial obligations and related corporate documentation.”
Geregu said the review process is “aimed at ensuring transparency, accuracy and prudent financial management.”
On the default and its resolution, the company said it acknowledges the concerns of shareholders, stakeholders and regulators, and confirmed it is “actively engaged with relevant stakeholders and advisers regarding the resolution of the various challenges.”
The company said it “is committed to achieving an orderly and mutually beneficial outcome,” adding that “discussions and engagements are ongoing” and that it “will continue to act in good faith in fulfilling its responsibilities.”
Geregu reaffirmed what it described as its commitment to responsible corporate governance, stating: “The Board and Management remain committed to transparency, responsible corporate governance and constructive engagement with all stakeholders.”
The company added that it “will continue to provide the market with appropriate updates on material developments concerning its performance in accordance with applicable regulatory requirements.”
Background
Geregu Power Plc is one of Nigeria’s premier listed power generation companies, operating a 435-megawatt gas-fired plant in Ajaokuta, Kogi State. The company listed on the Nigerian Exchange in 2022, the same year it issued the N40.09 billion Series 1 Senior Unsecured Bond at a fixed rate of 14.50% under its N100 billion debt issuance program.
The bond default, which FMDQ flagged publicly on August 9, has been widely described as the first corporate bond default in Nigeria’s debt capital market in seven years.
The company’s financial results for the first half of 2026 showed a sharp deterioration in performance, with profit after tax falling 88% to N2.54 billion from N20.27 billion in the same period of 2025, and revenue falling 78.71% to N18.65 billion from N87.63 billion.
The company had previously attributed the decline to a planned N61.47 billion major turbine maintenance programme.
GCR Ratings has affirmed the company’s national scale long-term issuer rating at A(NG) with a Stable outlook, expressing confidence in the company’s recovery once turbine overhauls are completed and full generating capacity returns to the national grid.
The company’s share price has declined 27.67% since the beginning of 2026, closing at N825.70 on August 7, down from N1,141.50 at the start of the year.
Geregu did not provide a specific timeline for curing the default or details on the resolution plan in its August 12 statement. It said further updates would be communicated to the market as appropriate.
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