Geregu Power Plc has settled the eighth coupon and part principal repayment due under its ₦40.085 billion Series 1 Fixed Rate Bond, resolving a payment obligation that had previously gone into default.
The company disclosed to the Nigerian Exchange on Thursday that the outstanding coupon and principal repayment had been paid to the bond trustees. The payment follows the earlier missed obligation, which led to the bond being classified as being in credit default and raised concerns about Geregu’s debt-servicing capacity.
For investors, the latest payment removes an immediate debt-servicing overhang and signals that the company has restored payments on the affected bond. However, the episode highlights the importance of Geregu’s cash flow and liquidity position as it continues to meet its financing obligations.
Geregu said the payment would not be affected by its ongoing efforts to resolve legacy matters predating the current board. The company also reaffirmed its commitment to meeting its obligations and maintaining compliance with regulatory requirements.
Investors will now watch whether Geregu maintains timely debt payments, how much of the bond principal remains outstanding, and whether the company’s legacy issues have any further effect on liquidity, earnings or operations.
.jpg)
