Geregu Confirms Clearing Outstanding N40.09bn Bond Obligations After Default

‎By Aduragbemi Omiyale

One of the leading power-generating organisations in Nigeria, Geregu Power Plc, has confirmed paying its bond investors, who did not receive credit alerts in their bank accounts on July 28, 2026.

In July 2022, Geregu Power issued N40.09 billion worth of Series 1 fixed-rate bond to investors at a coupon of 14.5 per cent.

On July 28, 2026, the energy firm was expected to pay about N6 billion to bondholders for the 8th coupon and part principal repayment of the paper issued under its N100 billion bond issuance programme, but it defaulted.

This development created panic in the capital market, with a rating agency quickly withdrawing its ratings on the company because of the bond repayment default.

Earlier, Business Post reported that the outstanding N6 billion bond obligations were cleared by the firm. This has now been confirmed by the entity.

In a notice to the Nigerian Exchange (NGX) Limited, Geregu Power thanked the bondholders, the Securities and Exchange Commission (SEC), the NGX, and the Nigerian Electricity Regulatory Commission (NERC) for their continued engagement and understanding while this matter was being resolved and reaffirmed its commitment to full compliance with its obligations.

It reaffirmed its commitment to all stakeholders as part of its ongoing dedication to preserving shareholder value and upholding the highest standards of corporate governance.

Geregu Power promised to continue to engage constructively with relevant parties to resolve legacy matters pre-dating the current board and confirmed that this process will not impact its ability to meet its obligations.