Infrastructure Credit Guarantee Company Plc (InfraCredit) has fully redeemed the 7.246% Redeemable Cumulative USD Preference Shares held by the Africa Finance Corporation (AFC) ahead of the instrument’s final maturity date. This development was disclosed in a filing with the NASD OTC Securities Exchange, marking a significant milestone for the company.

The redemption settles a long-standing USD-denominated obligation and is expected to further strengthen InfraCredit’s balance sheet, reinforcing its role in Nigeria’s infrastructure finance market. The transaction was executed on 25 November 2025, in line with the Share Subscription Agreement dated 4 July 2018, with the preference shares originally scheduled to mature on 30 November 2025.

Transaction Details

Under the redemption transaction, InfraCredit redeemed 9,952,067,699 units of the USD preference shares, paying a total of approximately USD 28.93 million. The transaction was completed in full and slightly ahead of schedule, eliminating future dividend obligations linked to the instrument. The redemption marks AFC’s exit from InfraCredit’s USD preference share instrument while preserving its equity relationship with the Company.

AFC’s Continued Stake

Post-redemption, AFC remains a significant shareholder in InfraCredit through its holding of 4.36 billion ordinary shares. These changes are expected to enhance InfraCredit’s long-term financial flexibility as it continues to support local-currency infrastructure bond issuances and credit enhancement transactions.

Strategic Importance

The transaction occurs at a time when InfraCredit is central to Nigeria’s infrastructure finance ecosystem. The Company has positioned itself as a key provider of credit guarantees that deepen the domestic capital market and attract long-term institutional capital. By fully redeeming the USD preference shares, InfraCredit has further strengthened its capital profile and positioned itself for its next phase of growth.

InfraCredit’s Role in Infrastructure Financing

InfraCredit Nigeria is a specialized infrastructure credit guarantee institution focused on mobilizing long-term local-currency capital for infrastructure financing. Since its inception, the Company has helped unlock more than N327 billion in domestic institutional funds for projects across energy, transport, telecommunications, and other sectors.

Impact and Future Outlook

The full redemption of the USD preference shares represents a significant reduction in foreign-currency obligations and confirms InfraCredit’s ability to meet large-scale liabilities, reinforcing confidence as it continues to deepen Nigeria’s infrastructure finance markets. InfraCredit’s ability to meet large-scale liabilities was earlier demonstrated when it settled its USD 26 million obligation to the Private Infrastructure Development Group’s (PIDG) after exiting its preference share stake in InfraCredit Nigeria.