Geregu Power Plc, one of Nigeria’s premier listed electricity generators, has defaulted on a bond payment for the first time in the country’s corporate debt market in seven years, a stumble that lands just as regulators are trying to convince investors the power sector’s finances are finally being cleaned up.
Data sourced by BusinessDay showed FMDQ Securities Exchange updated the listing status of Geregu Power’s N40.09 billion Series 1 Senior Unsecured Bond to reflect a credit default covering its eighth semi-annual coupon and scheduled fourth principal bullet repayment.
Corporate defaults of any kind are rare in Nigeria’s debt capital market, where borrowers with the scale to issue bonds have historically guarded their credit standing carefully, particularly when, like Geregu, they carry investment-grade ratings from Agusto & Co. and GCR Ratings.
The last comparable episode dates back to March 5, 2019, when Municipality Waste Management Contractors Limited, a private company promoted
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