InfraCredit Completes Landmark Redemption of AFC USD Preference Shares
Infrastructure Credit Guarantee Company Plc (InfraCredit) has announced the full and final redemption of the 7.246% Redeemable Cumulative USD Preference Shares held by Africa Finance Corporation (AFC). The transaction, executed on 25 November 2025, was completed ahead of the instrument’s final maturity date of 30 November 2025, as stipulated in the original 2018 Share Subscription Agreement.
Transaction Details and Strategic Impact
Under this significant financial move, InfraCredit redeemed 9,952,067,699 units of the USD preference shares, making a total payment of approximately USD 28.93 million. This action settles a long-standing USD-denominated obligation and eliminates all future dividend payments linked to the instrument. While the redemption marks AFC’s exit from this specific USD preference share instrument, the corporation remains a significant equity partner in InfraCredit, retaining 4.36 billion ordinary shares.
The successful completion of this transaction ahead of schedule is a strong signal to the market, demonstrating InfraCredit’s robust financial management and ability to meet large-scale liabilities. This move significantly strengthens InfraCredit’s balance sheet and enhances its long-term financial flexibility. It comes at a critical time for Nigeria’s infrastructure finance ecosystem, where the company plays a central role in mobilizing domestic capital.
Positioning for Future Growth in Infrastructure Finance
By removing this foreign-currency obligation, InfraCredit has further solidified its capital profile, positioning itself for its next phase of growth. The company, a specialized infrastructure credit guarantee institution, is focused on mobilizing long-term local-currency capital for critical infrastructure projects. To date, InfraCredit has helped unlock over N327 billion in domestic institutional funds for sectors including energy, transport, and telecommunications.
This redemption reinforces InfraCredit’s credibility as it continues to support local-currency infrastructure bond issuances and provide credit enhancement. The transaction underscores a trend of financial institutions proactively managing their capital structures, a topic of parallel importance as the Senate probes utilisation of funds in other sectors and as entities like Sovereign Trust Insurance and Access Holdings navigate the complex financial landscape. In a market where experts who warns Africa about foreign currency exposure, InfraCredit’s strategic balance sheet management serves as a positive case study, contrasting with concerns over alleged property fraud and other financial challenges that can affect market confidence.
