Financial analysts have expressed concerns as Senator Yari-owned Geregu Power Generation Company defaulted on its N40 billion bond payment months after billionaire businessman and Chairman of FirstBank, Femi Otedola, sold his majority stake in the power firm.
DAILY POST reports that Geregu had defaulted on its N40.09 billion Series 1 Senior Unsecured Bond.
Geregu confirmed the default in an updated listing by the Securities and Exchange Commission.
Further details showed that the seven-year bond, issued on July 28, 2022, at a fixed rate of 14.50 percent under the company’s N100 billion debt issuance programme, was structured with semi-annual coupon distributions and amortising principal repayments running through to its July 28, 2029, maturity.
However, the default in payment means a midway breach in Geregu’s bond life.
Reacting, a financial expert, Olumide Adesina said Geregu would have lost a fifth of its value overnight if it were traded on the US stock market
