Geregu Power’s N40.09bn Bond Default Triggers Agusto Rating Withdrawal

• Agusto & Co has withdrawn its A- rating on Geregu Power and its N40.09bn bond after the company missed scheduled coupon and principal payments.

• The ratings agency said it can no longer rely on Geregu’s financial statements pending an independent verification and forensic review.

• The withdrawal comes after Geregu’s H1 2026 revenue fell 78.7 percent and profit after tax plunged 88 percent, intensifying concerns over its debt-servicing capacity.

August 14, () — Agusto & Co has withdrawn the A- credit rating assigned to Geregu Power Plc and its N40.09 billion Series 1 Senior Unsecured Bond after the power generation company defaulted on scheduled debt payments.

The ratings agency disclosed this in an update on August 14, 2026, saying the withdrawal reflected both the default and its inability to obtain sufficient reliable information to maintain a credit opinion on Geregu.

The company missed its eighth coupon payment and fourth principal repayment on the bond.

Agusto said Geregu’s management had commenced an independent verification process and that the agency could no longer rely on the company’s existing audited financial statements pending completion of the review.

The agency said it would reassess Geregu’s rating after receiving reliable financial statements for the year ended December 31, 2025.

Default comes as earnings weaken sharply

The development comes against the backdrop of a sharp deterioration in Geregu Power’s 2026 financial performance.

The company’s revenue fell 78.7 percent to N18.65 billion in the first half of 2026 from N87.63 billion in the same period of 2025, while profit after tax dropped 88 percent to N2.54 billion from N20.27 billion.

The weaker performance was largely linked to major turbine maintenance that reduced the company’s generating capacity and affected electricity output.

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The decline represents a sharp reversal from the company’s stronger 2025 performance, when Geregu reported N41.98 billion in profit before tax, compared with N41.26 billion in 2024.

The combination of weaker operating earnings and missed debt payments has heightened investor attention on the company’s cash flows and ability to meet its obligations.

What investors should know about the bond

Geregu Power issued the Series 1 Senior Unsecured Bond in July 2022 under its N100 billion multi-instrument issuance programme.

The N40.085 billion bond carries a fixed annual coupon of 14.5 percent and has a seven-year tenor, with maturity scheduled for 2029.

Agusto initially rated the instrument BBB+ before subsequently upgrading it to A- with a Stable outlook.

The latest action is a withdrawal rather than a downgrade.

This distinction is important because Agusto is not assigning a lower credit assessment; it is saying that it currently lacks sufficient reliable information to maintain an assessment of Geregu’s creditworthiness.

Geregu has said it is engaging relevant stakeholders and advisers to address concerns around its bond obligations while reviewing its financial and operational commitments.

The immediate focus for investors will therefore be on the completion of the independent review, the release of reliable financial statements and the company’s ability to restore generation, improve cash flows and resolve the outstanding bond payments.