Geregu Power Plc is raising about N40 billion from the capital market to support its ongoing expansion project. Geregu Power generates about 10 percent of Nigeria’s power supply.
Geregu Power, a power generation company (Genco) owned by billionaire businessman, Mr. Femi Otedola, has launched its N40 billion Series I Fixed Rate Senior Unsecured Bond Issue. The issuance is the first tranche under the company’s N100 billion multi-instrument debt programme.
Geregu Power will use the net proceeds of the N40 billion bond to part-finance expansion of its current power generation capacity and also to acquire other strategic new power assets in Nigeria. The Genco is offering naira-denominated seven-year bonds at the par value of N1000 with a pricing range of between 12.75 percent and 13.25 percent. The bond is due in 2029 but it has a 24-month moratorium on principal repayment. The fixed-rate coupon will be paid semi-annually while the principal repayment will be by way of amortised redemption, after the expiration of the principal moratorium period.
The minimum subscription to the issue is N10 million and thereafter in multiples of N1million.The book-building-application process, for the offer, which started on Friday, July 1 will close tomorrow.
The bond is expected to be listed on the FMDQ Securities Exchange Limited and the Nigerian Exchange Limited, providing investors with an opportunity to trade on their bond holdings.