The federal government yesterday announced the successful issuance of a N501 billion inaugural bond for Generation Companies (Gencos) under the Presidential Power Sector Debt Reduction Programme (PPSDRP), recording 100 per cent subscription from pension funds, banks, asset managers and other investors.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, said the strong market response to the bond underscored renewed trust in government reforms and its commitment to stabilising the electricity value chain, improve liquidity, and attract long-term private capital into the sector.
As part of the deal, five Gencos which keyed into the programme aimed at settling the N4 trillion legacy debt owed by the government for over a decade, have signed Final Settlement Agreements (FIAs), with a total negotiated value of N827.16 billion, to be paid in four instalments.
Initiated by the Bola Tinubu administration, the programme is designed to address long-standing payment arrears owed to Gencos which for over a decade constrained liquidity, weakened balance sheets and discouraged investment across the power sector value chain.
Edun, who was represented by the Director General of the Debt Management Office (DMO), Patience Oniha, said the signing of the bonds under the N4 trillion Power Sector Multi-Instrument Issuance Programme represented far more than a financing transaction.
