Geregu Power Plc, a power generating firm said it has successful issuance of N40.08 billion Senior Unsecured Bonds under its N100 billion multi-instrument issuance programme at 14.5 per cent.
According to the company, its debut in the debt market was oversubscribed by investors from across the board.
The bonds issuance which commenced on July 1, 2022, following relevant approval of the Securities and Exchange Commission (SEC) closed on July 14, 2022, with a bond yield of 14.50 per cent.
The power generating firm is majorly owned by billionaire Femi Otedola, who acquired the company from the federal government through Forte Oil now Adova Plc.
This was the largest corporate bond issuance by a power generation company in Nigeria’s capital markets and a reflection of Geregu’s strong credit quality as well as the resilience of the Nigerian debt markets, despite current domestic challenges.
The Chief Executive Officer of Geregu Power, Akin Akinfemiwa stated that the capital raising 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,” Akinfemiwa said.