SEC’s largest approved corporate bond by power generation company debuts in debt capital markets

Geregu Power Plc, a power company primarily engaged in the generation and sale of electric power in Nigeria, has announced the successful issuance of its N40.085 billion Senior Unsecured Bonds under its N100 billion Multi-Instrument Issuance Programme.

The transaction, which represents Geregu’s debut bond issuance in the debt market was over -subscribed.
The issuance, which commenced on July 1, 2022, following relevant approval of the Securities and Exchange Commission, closed on July 14, 2022, with a bond yield of 14.50 percent.
Worthy of note is the huge appetite demonstrated by high-quality investors including pension fund administrators, commercial banks, asset managers, insurance companies and other corporates in spite of the rising interest rate environment due to increased borrowing activities and persistent inflationary pressures.

This is the largest corporate bond issuance by a power generation company in Nigeria’s capital markets and a reflection Geregu’s strong credit quality as well as the resilience of the Nigerian debt markets, despite current domestic challenges.

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Geregu’s Chief Executive Officer, Akin Akinfemiwa, noted that the capital raise would in no small measure support the Company’s capital investments. “The resounding success of our debut bond offer demonstrates implicit confidence in our business by the investment community in our quest to increase capacity and contribute our own quota to the Nigerian Electricity Supply Industry (NESI). It would help us in the attainment of our long-term corporate goals; market leadership, innovation, and commitment to the highest standards of environmental, social, and corporate governance.”

Geregu Power Plc has been assigned a long-term national scale rating of (A) by GCR Rating.
United Capital PLC acted as Lead Issuing House to the debut offering, while CardinalStone Partners Limited, Comercio Partners Capital Limited, Cordros Capital Limited, Coronation Merchant Bank Limited, FBNQuest Merchant Bank Limited, iWorld Financial Services Limited, Kairos Capital Limited, Lighthouse Capital Limited, Renaissance Securities (Nigeria) Limited, UCML Capital Limited, and Vetiva Capital Management Limited were Joint Issuing Houses.