InfraCredit Fully Redeems AFC USD Preference Shares at Maturity
Infrastructure Credit Guarantee Company Plc (InfraCredit) has successfully redeemed all outstanding USD-denominated preference shares held by the Africa Finance Corporation (AFC), marking a major milestone in the company’s capital management strategy.
According to a regulatory filing with the NASD OTC Securities Exchange, InfraCredit executed the full redemption of the 7.246% Redeemable Cumulative USD Preference Shares on 25 November 2025, slightly ahead of the originally scheduled maturity of 30 November 2025 under the Share Subscription Agreement dated 4 July 2018.
Under the terms of the transaction, InfraCredit redeemed 9,952,067,699 units of the preference shares and paid approximately USD 28.93 million, which included about USD 1.65 million in accrued and unpaid dividends up to the redemption date.
With the redemption completed, all rights, privileges, and dividend entitlements attached to the preference shares have ceased, and AFC no longer holds these instruments in InfraCredit’s capital structure.
Strategic Implications for InfraCredit
The redemption effectively settles a long-standing foreign currency obligation, reducing InfraCredit’s exposure to fixed USD-denominated liabilities and associated foreign exchange risk. This move is expected to strengthen the company’s balance sheet and enhanqce its financial flexibility as it scales its infrastructure finance solutions in Nigeria’s capital market.
InfraCredit’s focus remains on mobilizing long-term local-currency capital for infrastructure development by providing credit enhancement and guarantee solutions that unlock domestic institutional investment into infrastructure bonds and project financing.
Continued Partnership and Equity Position
Although AFC has exited the preference share instrument, it retains a significant equity position in InfraCredit through its holding of ordinary shares, which constitutes part of the broader institutional shareholder base.
The successful redemption highlights InfraCredit’s ability to meet large-scale liabilities as they fall due and reinforces investor confidence in its credit standing amidst evolving market conditions.
Market Context
InfraCredit has emerged as a key player in Nigeria’s infrastructure finance ecosystem, with its guarantees enhancing the credit quality of local currency infrastructure bonds and attracting long-term investment from pension funds and other institutional investors.
The company’s recent initiatives include support for significant infrastructure bond issuances and innovative financing structures, further contributing to the deepening of Nigeria’s capital markets.
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