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    Otedola’s Geregu Power Plc for listing on Nigerian exchange

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    By Abdul Lawal, Abuja

    History will be made this Wednesday 5th October 2022 as Geregu Power Plc is billed to be listed on the Nigerian Exchange making it the first of it’s kind in the 62 years history of the local bourse

    The Nigerian Exchange Limited (NGX) was formerly known as The Nigerian Stock Exchange, Lagos .

    Dailynewscrsft gathered that the admission on the Exchange will be by way of Listing By Introduction (LBI) with the admittance of its 2,500,000,000 ordinary shares of 50 kobo each at N100 per share to be traded on the floor of the exchange

    In June 2022, Geregu Power Plc appointed the accounting firm of Price Waterhouse Coopers (PwC) as auditors. It also brought on board Mr Paul Miyonde Gbededo, former Group Managing Director/CE of FMN

    However, the traditional ringing of the closing “gong” will be held on the last week of October 2022.

    Nigerian Exchange (NGX), a wholly-owned subsidiary of the Nigerian Exchange Group (NGX Group), is a leading listing and trading company in Africa with its history dating back to 1960 when the Lagos Stock Exchange was founded.

    It is an open, professional, and vibrant exchange, connecting Nigeria, Africa, and the world.

    Geregu Power plc Plant in July this year completed N40 billion Corporate Bond Issuance, largest in Power Sector.

    Nigeria’s Power Generating Company, Geregu Power Plant, has successfully raised N40 billion in unsecured corporate bonds at an interest rate of 14.5%.

    The bond issue is part of the company’s N100 billion multi-instrument issuance programme meant to finance capital expansion and working capital requirements.

    The bond opened on July 1 2022 and closed on the 14th of July and was reportedly oversubscribed.

    This is also the largest corporate bond raised by a Power Company in Nigeria.
    Proceed of the bond is to be utilized to augment funding for the planned acquisition of the 434MW Geregu Power Plant as well as to support its working capital requirements.

    The Bond is the first installment of the N100 billion multi-instrument issuance programme which the company launched.

    The N40 billion bond issued is for a fixed term of 7 years and at an issue price of N1000 per unit.

    The minimum uptake was N10 million and then multiples of N1 million subsequently.

    The bond closed at an interest rate of 14.5% and has a principal moratorium of 2 years. This means the principal will be paid after two years.

    The bond will be serviced semi-annually.

    Utilization of the bond is the partial financing of the acquisition of the Geregu II Power Plant.

    The bond will be repaid from the cash flow of the company.

    Lead Issuing houses for the bond include United Capital, Cordos Capital, Coronation Bank, Commercial Partners, FBN Quest, Kairos, and Lighthouse.

    The Chief Executive Officer of Geregu Plc, Mr. Akin Akinfemiwa had stated that the success of the bond confirms the confidence the debt market has in Nigeria’s power sector.

    “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.” – Mr. Akin Akinfemiwa 

    Rating Agency, GCR Ratings assigned an A rating meaning the bond is Stable. Augusto on the other hand assigned a Bbb+ rating to the bond also Stable.

    Nigeria’s business Mogul,Femi Otedola is the Chairman, Geregu Power PLC and was incorporated in November 2006 as one of the unbundled companies from the now-defunct Power Holding Company of Nigeria (PHCN).

    The Company began operations in February 2007, to generate electric and supply to the National Grid managed by the Transmission Company of Nigeria (TCN).

    Currently, Geregu Power has authorised and issued share capital of ₦1,245,000,000 comprising of 2,490,000,000 ordinary shares of ₦0.50k each, which has been fully paid up.

    Amperion Power owns 99.9% of the company.

    Mr. Femi Otedola is the Chairman of Geregu Power Plant while Mr. Akin Akinfemiwa is the Chief Executive

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