Infrastructure Credit Guarantee Company Plc (InfraCredit) has fully redeemed the 7.25 per cent redeemable cumulative USD preference shares held by Africa Finance Corporation (AFC), settling the obligation on the instrument’s maturity date, according to a filing with the NASD OTC Securities Exchange.
The redemption, executed on 25 November 2025, was in line with the Share Subscription Agreement dated 4 July 2018. The preference shares were originally scheduled to mature on 30 November 2025.
InfraCredit redeemed 9,952,067,699 units of the preference shares, paying a total redemption amount of approximately US$28.93 million, which included US$1.65 million in accrued and unpaid dividends up to the redemption date. Following the transaction, all rights, privileges, and dividend entitlements attached to the redeemed shares ceased, marking AFC’s exit from this USD-denominated instrument.
The redemption is expected to simplify InfraCredit’s capital structure and eliminate future fixed foreign-currency dividend obligations linked to the preference shares. Officials said the move strengthens the company’s financial flexibility, enabling continued support for local-currency infrastructure bond issuances and credit enhancement activities in Nigeria.
AFC remains a significant shareholder in InfraCredit through its 4.36 billion ordinary shares, representing 11.45 per cent of the company’s issued share capital. These ordinary shares rank pari passu with other ordinary shares, allowing AFC to retain a strategic stake in the firm’s growth while exiting the preference share instrument.
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The redemption forms part of InfraCredit’s ongoing strategy to streamline capital and reduce external currency obligations, while maintaining a diversified shareholder base anchored by long-term domestic and international investors. Key institutional shareholders include NSIA, Access-ARM Pension, AFC, CardinalStone, among others.
InfraCredit’s role on Nigeria’s Capital markets
InfraCredit, which specializes in providing credit guarantees for local-currency infrastructure bonds, has played a critical role in supporting Nigeria’s capital markets and infrastructure sector. The company’s instruments aim to reduce financing costs for issuers while enhancing investor confidence through structured credit support.
According to market analysts, the completion of the AFC preference share redemption removes one layer of fixed foreign-currency obligations, allowing InfraCredit to focus on expanding its impact-driven financing solutions. The company is expected to continue providing guarantees for infrastructure projects across transportation, energy, and social infrastructure sectors, reinforcing its position as a leading guarantor in Nigeria.
The transaction underscores the broader trend of capital structure optimization among infrastructure finance companies in Africa, where firms are increasingly balancing USD-denominated instruments with local-currency initiatives to manage foreign-exchange risk and maintain long-term sustainability.
Financial observers noted that the move also benefits investors by enhancing corporate transparency and simplifying the company’s equity and debt framework, making InfraCredit more attractive to domestic and international market participants seeking exposure to Nigeria’s growing infrastructure market.
With the redemption completed, InfraCredit’s institutional shareholder structure remains robust, ensuring continuity in governance and strategic oversight. Analysts expect the company’s long-term credit enhancement capacity to remain intact, supporting its role in facilitating investment-grade infrastructure projects in Nigeria and potentially across West Africa.
The successful exit of AFC from the preference shares also reflects effective management of cross-currency funding obligations by African financial institutions, a trend that market participants say could encourage further innovation in infrastructure financing instruments.
