Infrastructure Credit Guarantee Company Plc (InfraCredit) has completed the full redemption of the 7.246% Redeemable Cumulative USD Preference Shares held by Africa Finance Corporation (AFC) ahead of the instrument’s final maturity date.
The development was disclosed in a filing with the NASD OTC Securities Exchange.
The redemption settles a long-standing USD-denominated obligation and signals a further strengthening of InfraCredit’s balance sheet as it deepens its role in Nigeria’s infrastructure finance market.
What the data is saying
According to the release made available to Nairametrics, the redemption was executed on 25 November 2025 in line with the Share Subscription Agreement dated 4 July 2018, with the preference shares originally scheduled to mature on 30 November 2025.
Under the transaction, InfraCredit redeemed 9,952,067,699 units of the USD preference shares and paid a total of approximately USD 28.93 million.
- The redemption amount included about USD 1.65 million in accrued and unpaid dividends up to the redemption date.
- The instrument carried a fixed 7.246% cumulative dividend, payable in US dollars over its tenor.
- All rights, preferences, privileges, and dividend entitlements attached to the preference shares ceased with effect from 25 November 2025.
- Following the transaction, AFC no longer holds the USD-denominated redeemable preference shares in InfraCredit.
The data shows that the transaction was completed in full and slightly ahead of schedule, eliminating future dividend obligations linked to the instrument.
More insights
The redemption marks AFC’s exit from InfraCredit’s USD preference share instrument while preserving its equity relationship with the Company.
Post-redemption, AFC remains a significant shareholder through its holding of 4.36 billion ordinary shares.
- The ordinary shares represent 11.45% of InfraCredit’s issued share capital and rank pari passu with other ordinary shares.
- Retiring the preference shares removes a layer of quasi-debt from InfraCredit’s capital structure.
- The move reduces fixed foreign-currency obligations and associated exchange-rate exposure.
- The action underscores InfraCredit’s capacity to meet sizeable USD liabilities as they fall due.
Collectively, these changes are expected to enhance InfraCredit’s long-term financial flexibility as it continues to support local-currency infrastructure bond issuances and credit enhancement transactions.
Market context
The transaction comes at a time when InfraCredit remains central to Nigeria’s infrastructure finance ecosystem.
The Company has positioned itself as a key provider of credit guarantees that deepen the domestic capital market and attract long-term institutional capital.
- InfraCredit’s guarantees have enabled infrastructure projects to access long-tenor funding from pension funds and other domestic investors.
- The focus on local-currency financing helps mitigate foreign-exchange risks for infrastructure sponsors.
- Institutional investors continue to play a dominant role in the Company’s ownership structure.
By fully redeeming the USD preference shares, InfraCredit has further strengthened its capital profile and positioned itself for its next phase of growth.
What you should know
InfraCredit Nigeria is a specialised infrastructure credit guarantee institution focused on mobilising long-term local-currency capital for infrastructure financing.
Since its inception, the Company has helped unlock more than N327 billion in domestic institutional funds for projects across energy, transport, telecommunications, and other sectors.
- InfraCredit transitioned to a public limited company and listed on the NASD OTC Securities Exchange in 2025.
- The listing followed strategic equity investments from the United Kingdom’s MOBILIST programme and domestic institutions.
- The broader shareholder base has strengthened the Company’s capital position and governance framework.
The full redemption of the USD preference shares represents a significant reduction in foreign-currency obligations and confirms InfraCredit’s ability to meet large-scale liabilities, reinforcing confidence as it continues to deepen Nigeria’s infrastructure finance markets.
InfraCredit’s ability to meet large-scale liabilities was earlier demonstrated when it settled its USD 26 million obligation to the Private Infrastructure Development Group’s (PIDG) after exiting its preference share stake in InfraCredit Nigeria.
