Infrastructure Credit Guarantee Company PLC (InfraCredit) has fully redeemed its 7.246% redeemable cumulative US dollar preference shares held by Africa Finance Corporation (AFC) and settled the debt on the instrument’s maturity date.
The redemption was effected on November 25, 2025 pursuant to the share subscription agreement dated July 4, 2018, according to a NASD OTC stock exchange filing.
The preferred stock was originally scheduled to mature on November 30, 2025.
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Pursuant to the transaction, InfraCredit redeemed 9,952,067,699 units of preferred stock for a total payment of approximately $28.93 million. This amount includes approximately $1.65 million in unpaid and unpaid dividends through the redemption date.
The transaction means that AFC will exit InfraCredit’s USD denominated redeemable preferred stock product, simplifying the company’s capital structure and eliminating any future fixed foreign currency dividend obligations associated with the product.
It also highlights InfraCredit’s ability to meet significant foreign currency commitments as they fall due, reinforcing confidence in the company’s liquidity position and overall balance sheet strength.
Despite the withdrawal from preference shares, AFC remains a significant shareholder with 4.36 billion ordinary shares representing 11.45 per cent of InfraCredit’s issued share capital. These shares rank equally with other common shares.
All rights, preferences, privileges and dividend rights attached to the redeemed Preferred Stock will expire on November 25, 2025.
The discontinued products included a fixed cumulative USD dividend of 7.246%. This redemption removes a layer of quasi-debt from InfraCredit’s balance sheet and is expected to improve the company’s long-term financial flexibility, particularly as it continues to support local currency denominated infrastructure bonds and credit enhancement transactions across Nigeria.
Post redemption, Infrastructure Credit’s ownership structure remains diversified and institutionally anchored, led by the Nigerian Government Investment Authority (NSIA), Access-ARM Pensions, AFC, Cardinal Stone and other local and international investors.
The move comes as infrastructure credits continue to play a pivotal role in Nigeria’s infrastructure finance landscape by deepening the domestic capital market and providing guarantees to attract long-term institutional investors into infrastructure projects.
By fully retiring the US dollar preferred stock prior to final maturity, the company further strengthened its capital profile, reduced its foreign currency exposure and positioned itself for its next phase of growth.
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