“FG SCORES BIG: N501bn POWER SECTOR BOND HITS 100% SUBSCRIPTION MILESTONE “
GREATRIBUNETVNEWS–THE Federal Government’s inaugural N501 billion power sector bond has recorded a 100% subscription, a major boost for the nation’s energy sector. Here are the key highlights:
– Full Subscription : The bond issuance, aimed at resolving longstanding debts in the power sector, attracted participation from pension funds, banks, asset managers, and other investors.
– Debt Resolution: The programme targets verified receivables for electricity supplied between February 2015 and March 2025, with settlements to be made through negotiated agreements with power generation companies.
– Investment Confidence : The move is expected to restore investor confidence in the sector, according to Sahara Power Group’s Kola Adesina.
– Phased Payments : The total negotiated settlement amount of N827.16 billion will be paid in four instalments, with the first two instalments (N421.42 billion) funded by the Series 1 bond issuance.
_”The Programme represents a decisive reset of the electricity market, combining debt resolution with broader financial and structural reforms,”_ Olu Verheijen, Special Adviser to the President on Energy.
_”Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made,”_ Kola Adesina, Group Managing Director of Sahara Power Group.
“Because we were being owed so much, it was a bit of a problem for us to put in more money. But last year we took the bull by the horns, based on President Bola Ahmed Tinubu’s commitment in resolving the legacy issues,” he added.
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