InfraCredit Redeems AFC USD Preference Shares on Final Maturity Date

Kayode Tokede

Infrastructure Credit Guarantee Company Plc (InfraCredit) has completed the full redemption of the 7.246p er cent Redeemable Cumulative USD Preference Shares held by Africa Finance Corporation (AFC) ahead of the instrument’s final maturity date.

A filing with NASD OTC Securities Exchange revealed that the redemption was executed on November 25, 2025, in line with the Share Subscription Agreement dated July 4, 2018.

The filing obtained by THISDAY stated that the preference shares were originally due to mature on November 30, 2025.

Under the transaction, InfraCredit redeemed 9,952,067,699 units of the preference shares and paid a total redemption amount of approximately $28.93 million, inclusive of USD 1.65 million, in accrued and unpaid dividends up to the redemption date.

According to the filing, the transaction marks AFC’s exit from InfraCredit’s USD-denominated redeemable preference share instrument, effectively simplifying the company’s capital structure and removing future fixed foreign-currency dividend obligations tied to the instrument.

The redemption also underscores InfraCredit’s capacity to meet large USD obligations as they fall due, reinforcing confidence in its balance sheet strength and liquidity position.

Following the transaction, AFC remains a shareholder in InfraCredit through its holding of 4.36 billion ordinary shares, representing 11.45 per cent of the company’s issued share capital, with such shares ranking pari passu with other ordinary shares.

All rights, preferences, privileges, and dividend entitlements attached to the redeemed preference shares ceased with effect from 25 November 2025, the redemption date.

The redeemed instrument carried a fixed 7.246 per cent cumulative USD dividend, and its retirement removes a layer of quasi-debt from InfraCredit’s balance sheet.

The move is expected to enhance the company’s long-term financial flexibility, particularly as it continues to support local-currency infrastructure bond issuances and credit enhancement transactions in Nigeria.

Post-redemption, InfraCredit’s shareholding structure remains diversified and institutionally anchored, led by NSIA, Access-ARM Pension, AFC, CardinalStone, and other long-term domestic and international investors.

The redemption comes at a time when InfraCredit continues to play a central role in Nigeria’s infrastructure finance market, providing credit guarantees that deepen the domestic capital market and crowd in long-term institutional capital for infrastructure development.

By retiring the USD preference shares in full and ahead of final maturity, InfraCredit has further strengthened its capital profile and reduced foreign-currency exposure, positioning the Company for the next phase of growth.