InfraCredit Completes Significant Share Redemption, Strengthening Financial Position
Infrastructure Credit Guarantee Company Plc (InfraCredit) has successfully concluded the full redemption of its 7.25 per cent Redeemable Cumulative USD Preference Shares, previously held by the Africa Finance Corporation (AFC). This strategic financial manoeuvre, executed on November 25, 2025, met the instrument’s maturity obligations precisely on schedule, as stipulated by the Share Subscription Agreement originally signed on July 4, 2018. The preference shares were slated for maturity on November 30, 2025, making this an early yet compliant settlement.
The comprehensive redemption involved InfraCredit repurchasing a substantial 9,952,067,699 units of these preference shares. The total payout amounted to approximately $28.93 million. This figure notably includes $1.65 million designated for accrued and unpaid dividends up to the redemption date. As of November 25, 2025, all associated rights, preferences, privileges, and dividend entitlements linked to these redeemed preference shares have officially ceased.
This pivotal transaction signifies a complete exit for AFC from InfraCredit’s U.S. dollar-denominated redeemable preference share instrument. The move is poised to streamline InfraCredit’s capital structure significantly. Furthermore, it effectively eliminates any future fixed foreign-currency dividend obligations tied to this specific financial instrument, thereby reducing currency-related financial risks.
While AFC has divested its preference shares, it continues to maintain a significant stake in InfraCredit as an ordinary shareholder. AFC currently holds 4.36 billion ordinary shares, which represents 11.45 per cent of InfraCredit’s total issued share capital. These ordinary shares are held on a pari passu basis, meaning they rank equally with all other ordinary shares issued by the company.
The completion of this redemption is anticipated to bolster InfraCredit’s long-term financial flexibility. This enhanced financial agility is particularly crucial as the company remains committed to its core mission of supporting local-currency infrastructure bond issuances and facilitating credit enhancement transactions within Nigeria.
Following this redemption, InfraCredit’s shareholding structure is characterized by its continued diversification and a strong institutional anchoring. The company’s ownership is robustly supported by a consortium of key investors, including:
- NSIA (Nigerian Sovereign Investment Authority)
- Access-ARM Pension
- Africa Finance Corporation (AFC)
- CardinalStone
- A broad base of other long-term domestic and international institutional investors.
This strategic financial restructuring occurs at a time when InfraCredit is playing an increasingly vital role in Nigeria’s infrastructure finance landscape. The company’s provision of crucial credit guarantees is instrumental in deepening the domestic capital market. By mitigating risks, InfraCredit effectively encourages and attracts long-term institutional capital, which is essential for driving forward critical infrastructure development projects across the nation. This commitment underscores InfraCredit’s dedication to fostering sustainable economic growth through enhanced infrastructure.
