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Geregu Power Plc to list N40 bln bonds on FMDQ platform

Geregu Power Plc, a power generating firm on Thursday said it has secured the approval to list its N40 billion series 1 fixed rate senior unsecured bond of the platform of the FMDQ Securities Exchange.

In a regulatory filing with the Nigerian Exchange Limited (NGX), the power-generating company majorly owned by billionaire Femi Otedola said the bond will be added on the FMDQ’s daily quotations and listing page.

“Geregu Power Plc (the Company) hereby notifies the Nigerian Exchange Limited and the Investing public that the Company has obtained the approval to list the N40.09Billion Series 1 Fixed Rate Senior Unsecured Bond (the ‘Bond’) on FMDQ Securities Exchange.

“Arising from the foregoing, the Bond will be added on the FMDQ’s daily quotations and Listings Page on the FMDQ Exchange website after which the Bond shall be admitted for trading,” the company said in the regulatory communication signed by the company secretary, Akinleye Olagbende.

It would be recalled that Global Financial Digest reported last week that Geregu became the first power generating company in the country to be admitted to the Mainboard of the NGX.

The company listed 2.5 billion ordinary shares of 50 kobo each at N100 per share were admitted on the Exchange.

Also, the company raised the N40.08 billion Senior Unsecured Bonds under its N100 billion multi-instrument issuance programme at 14.5 per cent in July this year.

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 Chief Executive Officer of Geregu Power, Akin Akinfemiwa stated that the capital raising would in no small measure support the company’s capital investments.

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Geregu Power lists 2.5 bln shares on Nigerian Exchange, boosts market cap

Geregu Power Plc (GPP) on Wednesday became the first power generating company in the country to be admitted into the Mainboard of the Nigerian Exchange Limited (NGX) by way of listing by Introduction (LBI).

The company, majorly owned by Billionaire businessman, Femi Otedola’s 2.5 billion ordinary shares of 50 kobo each at N100 per share were admitted on the Exchange.

The listing of Geregu’s shares has added N250,000,000,000 billion to the market capitalisation of NGX and further boosted liquidity in the Nigerian stock market and providing opportunities for wealth creation.

On its first trading day on the NGX, Geregu Power’s share gained 10 per cent to close at N110 per share from the N100 per share it was listed by introduction.

The gain pushed its market capitalisation to N275 billion from the N250 billion it was listed.

A total of 8.5 million shares of Geregu worth N935 million was traded in one day as its listing further boosted liquidity in the Nigerian capital.

To mark the significance of the listing, a closing gong ceremony was being planned for the last week of October 2022

The company had appointed the accounting firm of PriceWaterhouseCoopers (PwC) in June 2022, as auditors and also brought on board Paul Miyonde Gbededo, former Group Managing Director/CE of Flour Mills of Nigeria into its board.

the Executive Chairman, Board of Directors, GPP, Femi Otedola, stated that “the listing of the company was the actualisation of a vision to bring world-class standards in governance, sustainability, and business processes to the company and the Nigerian electricity sector.”

He added that, “listing on the Main Board of the Exchange will ensure that the long-term growth of the company is assured and its benefits will be passed on to our esteemed shareholders.”

Nigerian Exchange Limited continues to evolve in order to remain an attractive destination for issuers, meet the needs of our valued stakeholders and achieve the highest level of competitiveness.

Commenting on the development, the Chairman, NGX, Abubakar Mahmood said, “We are  particularly pleased that Geregu Power has joined the prestigious group of companies listed on our Main  Board, which will differentiate it as a professionally run power company with high standards, having met  NGX’s listing criteria.

“A Main Board listing is a sign of commitment to strong corporate governance, excellence, professionalism, efficiency in service delivery, and providing increased returns to shareholders. It is our expectation that the Geregu Power listing will encourage other power generation and distribution companies to list their shares on the Exchange, thereby opening the sector up to cheaper, long-term capital that will boost infrastructural development and value creation.”

On his part, the Chief Executive Officer, NGX,Temi Popoola, said, “Today’s (yesterday) listing is a promising  development in the country’s power sector and we are delighted to welcome Geregu Power Plc to the  Exchange. Having Geregu listed in our market is proof of NGX’s commitment to building a robust and inclusive market and creating avenues for sustainable investment.

“This listing will enhance liquidity for Geregu, increase its visibility among global investors, elevate its value and boost transparency, as our marketplace is a sterling platform for raising capital and enabling sustainable growth for national development. As a listing platform of choice, we are committed to working with companies at various stages of growth to explore the different opportunities in the capital market to meet their business objectives.”

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How Geregu Power became one of the best performing power plants in Nigeria – Akin Akinfemiwa

The management of Geregu Power Plc earned a rare commendation from the lawmakers in the Senate, as the lawmakers lauded the efforts of the company for meeting the performance target set by the Bureau of Public Enterprise (BPE).

At the end of the just-concluded three-day investigative hearing on the power sector recovery plan, the lawmakers blamed the hiccups in the power sector to lack of coordination among players responsible for power administration in the country. But the committee submitted that only two of the six privatised GenCos- Geregu Power and Transcorp Power met the performance targets set by BPE.

The Chairman of the committee, Gabriel Suswam, said: “We have listened to presentations from the government side and the operators and we have seen that there is no alignment anywhere and that is the problem. Once there is an alignment and proper coordination, there will be sanity and progress. Out of six GenCos privatised, only two of them are performing.”

The Director-General of Bureau of Public Enterprise (BPE), Alex Okoh, said, “Geregu Power met its minimum performance target set for it in 2013, while the other four GenCos did not meet their targets for various reasons. It achieved 435mw from its 414mw at handover.”

But what has been behind Geregu Power Plc’s success considering the numerous challenges in the sector?

The company attributed its success to its long-term investment plan, reaffirmed belief in the overall objective of the power sector reform programme of the Federal Government.

In an exclusive interview with Nairametrics, the Chief Executive Officer, Geregu Power Plc, Akin Akinfemiwa, attributed the success of the company to a strong focus in certain areas.

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Only two of six privatised power plants delivered on targets – BPE

The Bureau of Public Enterprises (BPE) on Tuesday delivered an unflattering assessment of the performance of the power sector since it was handed over to new private operators in 2013.

The Director-General of the privatisation agency, Alex Okoh, told the Senate Committee on Power during its investigative hearing on the power sector recovery plan that only Transcorp Power Limited and Geregu Power Limited out of the six privatised electricity generation companies (GENCOs) have met their performance targets since taking over.

Transcorp Power, operator of the 972 megawatts (MW) Ughelli power plant reputed to be Nigeria’s largest fossil-fuel based power plant, is owned by the UBA Chairman, Tony Elumelu.

The 434 MW-capacity Geregu Power plant operated by Amperion Power Distribution Company Limited, a subsidiary of Forte Oil Plc, is owned by investor and businessman, Femi Otedola.

The two companies were among the winners in the bid for four power plants privatised by the BPE in 2012.

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Forte oil, others invest $94m in Geregu power plant

ABUJA – The Forte Oil PLC and new owners of the Geregu Power Plant in Kogi State have invested $94 million in the plant targeting to raise its generation capacity from 414 megawatts to 434 megawatts of electricity.

This development was contained in a communiqué issued at the end of the 22nd monthly meeting of the Power Sector Operators, hosted by the Kogi State Government in collaboration with Geregu Power Plc at Geregu Power Plant, Ajaokuta, Kogi State.

The meeting according to the communiqué, “Acknowledged the Kogi State Government for resolving the way leave problems that were preventing progress on the construction of the TCN substation of Kabba. Completion of the substation will increase delivery of power to Kabba and environs.