Otedola: Experts react as Yari-owned Geregu defaults on N40bn bond payment

Financial analysts person expressed concerns arsenic Senator Yari-owned Geregu Power Generation Company defaulted connected its N40 cardinal enslaved outgo months aft billionaire businessman and Chairman of FirstBank, Femi Otedola, sold his bulk involvement successful the powerfulness firm.

DAILY POST reports that Geregu had defaulted connected its N40.09 cardinal Series 1 Senior Unsecured Bond.

Geregu confirmed the default successful an updated listing by the Securities and Exchange Commission.

Further details showed that the seven-year bond, issued connected July 28, 2022, astatine a fixed complaint of 14.50 percent nether the company’s N100 cardinal indebtedness issuance programme, was structured with semi-annual coupon distributions and amortising main repayments moving done to its July 28, 2029, maturity.

However, the default successful outgo means a midway breach successful Geregu’s enslaved life.

Reacting, a fiscal expert, Olumide Adesina said Geregu would person mislaid a 5th of its worth overnight if it were traded connected the US banal marketplace pursuing the default quality connected its debt.

“Geregu would apt person mislaid a 5th of its worth overnight if it were traded connected the US banal marketplace ove...