Transcorp Power has fully repaid all of its foreign currency loans, according to the details provided in the company’s investor presentation.
The company secured a $215 million acquisition loan to purchase a 100% stake in Ughelli Power Plc.
This loan was restructured in 2022 at an interest rate of 8.5% plus LIBOR, with approximately $1.6 million of the loan remaining at that time.
However, the company has now confirmed that it repaid the loans in January 2024, freeing itself from any significant foreign currency loans.
According to the company’s audited accounts for 2022, the group had a total borrowing of about N103.7 billion, which included foreign currency debts amounting to approximately $1.6 million.
These forex loans have been fully repaid as of January 9, 2024.
By clearing its foreign currency loans, Transcorp Power can now use its foreign currency cash flows to fund capital expenditures.
On profitability
On capital structure
The company’s total assets grew by 32.8% year-on-year, increasing from N168 billion to N223 billion. The company anticipates continued growth in total assets as they plan to invest more in capital expenditures (CAPEX), aiming to bring at least an additional 250 MW to the grid by FY 2024.