InfraCredit redeems $28.9m AFC preference shares, strengthens capital structure

INFRASTRUCTURE Credit Guarantee Company Plc (InfraCredit) has completed the full redemption of its 7.246 percent dollar-denominated redeemable cumulative preference shares held by Africa Finance Corporation (AFC), settling the instrument at maturity.

A filing with the NASD OTC Securities Exchange confirmed that the redemption was executed on November 25, 2025, in line with the Share Subscription Agreement dated July 4, 2018. The preference shares were originally set to mature on November 30, 2025.

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

The redemption marks AFC’s exit from InfraCredit’s USD-denominated preference share instrument, simplifying the company’s capital structure and eliminating future fixed foreign-currency dividend obligations tied to the shares.

The move also underscores InfraCredit’s ability to meet large-dollar obligations on schedule, reinforcing confidence in its liquidity and balance sheet strength. Post-redemption, AFC continues to hold 4.36 billion ordinary shares in InfraCredit, representing 11.45 percent of the company’s issued share capital.

Capital structure and market impact

The retired preference shares carried a fixed 7.246 percent cumulative USD dividend. Their redemption removes a quasi-debt layer from InfraCredit’s balance sheet, enhancing long-term financial flexibility as the company continues to support local-currency infrastructure bond issuances and credit enhancement transactions in Nigeria.

READ ALSO: MTN weighs full acquisition of IHS Towers in strategic shift on network infrastructure

InfraCredit’s shareholding remains diversified and institutionally anchored, including investors such as NSIA, Access-ARM Pension, AFC, and CardinalStone. By retiring the USD preference shares ahead of final maturity, InfraCredit has further reduced foreign-currency exposure, strengthening its capital profile for future growth.

According to the company, the redemption comes at a time when InfraCredit remains a central player in Nigeria’s infrastructure finance market, providing credit guarantees that deepen the domestic capital market and attract long-term institutional capital for infrastructure development.