Geregu Power Plc has confirmed the payment of the eighth coupon and part of the principal repayment due under its N40.08 billion Series 1 Fixed Rate Bond, days after concerns emerged over a default on the instrument.

The confirmation was contained in a corporate disclosure filed with the Nigerian Exchange Limited on August 20, 2026, and signed by StructureHQ Limited, the company’s secretary.

According to the company, the funds due to bondholders have been remitted to the designated trustees under the bond programme.

In the disclosure, Geregu Power stated that it had fulfilled its obligations relating to the eighth coupon payment and part principal repayment under the bond issued through its Bond Issuance Programme.

“The Board of Geregu Power Plc hereby discloses to Nigerian Exchange Limited and the investing public that the 8th coupon and part principal repayment due under the Company’s N40.085 billion Series 1 Fixed Rate Bond have been paid to the Trustees,” the company said.

The power generation company reiterated its commitment to stakeholders, noting that it remains focused on protecting shareholder value and maintaining strong corporate governance standards.

Geregu also stated that it is engaging relevant stakeholders to resolve legacy issues that predate the tenure of the current board, adding that such matters would not affect its ability to meet future financial obligations.

Geregu Power had paid N6.03 billion owed to investors under its N40.08 billion Series 1 Senior Unsecured Bond, bringing an end to weeks of controversy surrounding the missed payment.

The default, first reported earlier this month, sparked concerns across the capital market over the implications for investor confidence in Nigeria’s corporate bond market.

Issued on July 28, 2022, under Geregu’s N100 billion multi-instrument issuance programme, the seven-year bond carries a fixed coupon rate of 14.5 per cent and is scheduled to mature on July 28, 2029.

Prior to the payment, FMDQ Securities Exchange had flagged the instrument as being in default following the non-payment of the eighth coupon and fourth bullet principal repayment.

The bond payment comes amid heightened scrutiny of Geregu Power’s financial position following a deterioration in earnings and operational cash flows.

As a consequence of the default event, rating agency Agusto & Co withdrew the “A-” credit rating previously assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond.

The agency said the decision reflected both the default and its inability to obtain sufficient reliable information to continue maintaining a rating opinion on the company.

The rating withdrawal marked a significant shift from Agusto & Co’s earlier assessment, under which the bond had carried an A- rating with a Stable outlook.