Infrastructure Credit Guarantee Company Plc (InfraCredit) has concluded the complete redemption of its 7.246 per cent Redeemable Cumulative USD Preference Shares previously held by Africa Finance Corporation (AFC). This repayment was made before the instrument's final due date.
A notification filed with the NASD OTC Securities Exchange indicates that the redemption took place on November 25, 2025, adhering to the terms of the Share Subscription Agreement established on July 4, 2018.
The preference shares were initially scheduled to mature on November 30, 2025, according to information available from the filing.
Under the terms of this transaction, InfraCredit settled approximately $28.93 million for the redemption of 9,952,067,699 units of the preference shares. This sum includes USD 1.65 million representing accrued and unpaid dividends up to the date of redemption.
This financial manoeuvre signifies AFC's complete withdrawal from InfraCredit's USD-denominated redeemable preference share instrument. Consequently, the company's capital structure is simplified, and ongoing fixed foreign-currency dividend commitments associated with this instrument are eliminated.
The successful redemption also serves as a testament to InfraCredit's capability to manage substantial USD financial obligations as they become due, thereby reinforcing confidence in the strength of its balance sheet and its liquidity status.
Following this redemption, AFC continues to be a stakeholder in InfraCredit, holding 4.36 billion ordinary shares. This holding represents 11.45 per cent of the company's issued share capital and ranks equally with other ordinary shares.
All rights, preferences, privileges, and entitlements to dividends connected with the redeemed preference shares ceased to be effective from November 25, 2025, the date of the redemption.
The redeemed instrument carried a fixed cumulative USD dividend rate of 7.246 per cent, and its retirement effectively removes a layer of quasi-debt from InfraCredit's financial records.
This strategic move is anticipated to bolster the company's long-term financial flexibility. It is particularly relevant as InfraCredit continues its role in supporting local-currency infrastructure bond issuances and engaging in credit enhancement activities within Nigeria.
With the complete repayment of the USD preference shares ahead of their maturity, InfraCredit has enhanced its capital profile and reduced its exposure to foreign currency fluctuations, positioning itself effectively for future expansion.
InfraCredit's shareholder base remains diversified and anchored by strong institutional backing, with key investors including NSIA, Access-ARM Pension, AFC, CardinalStone, and various other long-term domestic and international entities.
The company continues to be a vital player in Nigeria's infrastructure finance sector, providing credit guarantees that contribute to the deepening of the domestic capital market and attract substantial long-term institutional investment for infrastructure development.
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!