Geregu Power bond default rattles investors as earnings plunge 88%

By Udeme Akpan, Energy Editor
Investors in Geregu Power Plc are facing renewed concerns over the company’s financial position after it defaulted on its N40.09 billion Series 1 Senior Unsecured Bond, missing both its eighth semi-annual coupon payment and scheduled fourth principal repayment.
The default was disclosed in an updated listing status published by FMDQ Securities Exchange, which classified the bond as being in “credit default” over the eighth coupon payment and fourth bullet principal repayment.
The development comes amid a sharp deterioration in Geregu Power’s revenue, profitability and operating cash flows, raising concerns over its immediate liquidity and debt-servicing...