Neveah Limited has announced a N9 billion Commercial Paper issuance under its N30 billion Commercial Paper Programme.
The proceeds will be used to support Neveah’s working capital requirements, including expanding procurement and optimizing logistics to meet growing demand in both the metals and agricultural sectors.
The offer opened on Tuesday, March 24, 2026, and is scheduled to close on Monday, March 30, 2026.
What the offer circular is saying
- Tenor: 181 days for Series 5, 268 days for Series 6, and 364 days for Series 7
- Discount Rate: 19.0194% (Series 5), 19.3099% (Series 6), 19.3651% (Series 7)
- Implied Yield: 21.0000% (Series 5), 22.5000% (Series 6), 24.0000% (Series 7)
- Settlement Date: Monday, March 30, 2026
- Issue Rating (Short-Term): BBB+ (DataPro)
- Minimum Subscription: N5,000,000 (5,000 units at N1,000/unit), with multiples of N1,000 thereafter
- Taxation: Applicable taxes shall apply except otherwise exempt
- Listing: FMDQ and/or NGX
What you need to know
Commercial papers (CPs) are short-tenor debt instruments issued by both listed and unlisted corporates.
- These instruments are commonly used by companies to finance their working capital needs. Most CPs are unsecured, meaning they are not backed by collateral.
- Also, they carry default/credit risk, which refers to the possibility that the issuer may fail to meet its payment obligations.
Investors must ensure that the yield from the CP exceeds the yields from risk-free assets such as government bonds or treasury bills to compensate for the risk.
Neveah’s commercial papers offer an implied yield ranging from 21% to 24%, depending on the series and its tenor.
These yields provide a competitive risk premium compared to short-term government securities, making them an attractive option for investors seeking higher returns.
However, it is crucial to assess the riskiness of the commercial paper. This involves analyzing the issuer’s ability to repay the principal and interest on time.
Investors should consider Neveah’s financial health, rating, and past performance before making an investment decision.
About Neveah Limited
Neveah Limited, established in 2014, is a Nigerian commodities export company specializing in the sourcing and export of base metals, minor metals, and agricultural commodities.
Registered with the Nigerian Export Promotion Council (NEPC), Neveah exports a variety of products, including zinc, columbite, tin, and agricultural goods like dried hibiscus flowers, peanuts, and sesame seeds.
Its major export markets span Europe, North America, and Asia, with a presence in over 15 countries globally.
Headquartered in Mowe, Ogun State, Neveah also operates a state-of-the-art aluminium and copper recycling plant, enhancing its value chain and sustainability efforts.
The plant has an annual capacity of 36,000 metric tonnes of aluminium, with copper output at 10% of that, meeting growing global demand for low-carbon inputs.
Neveah has gained recognition for its steady growth, ranking 21st in Africa’s Fastest-Growing Companies in 2025. This is a testament to its strong market position and commitment to delivering high-quality products.
It competes with key players like Olam International, Tulip Cocoa, and Sabi Exports, which also operate in the agricultural and mineral export sectors in Nigeria.
Insight into Financial Performance
Neveah Limited has recorded impressive growth in revenue, increasing from N21.1 billion in 2024 to N23.44 billion in 2025, representing an 11.08% increase.
- Operating income surged by 333%, from N1.69 billion in 2024 to N7.34 billion in 2025.
Neveah also achieved a significant turnaround in profit before interest and tax (PBIT), moving from a negative N146,000 in 2024 to a positive N5.46 billion in 2025. This represents a marked improvement in profitability.
However, despite these positive results, liquidity challenges remain a concern.
- Neveah’s current ratio stands at just 0.45, indicating that it has less than half the assets needed to cover its short-term liabilities.
- Total debt has risen significantly, with short-term borrowings increasing by 156% to N31.28 billion in 2025.
This is coupled with a debt-to-assets ratio of 0.91 and a debt-to-equity ratio of 12.3, indicating the company is heavily reliant on debt financing.
The interest coverage ratio stands at 1.05, meaning that Neveah’s operating income barely covers its interest expenses. While this is an improvement from previous years, it is still marginal and increases financial risk if operating conditions worsen.
Bottom-line
Notwithstanding Neveah’s BBB+ rating from DataPro, investors should be cautious about Neveah’s liquidity risks and financial leverage.
Efficient debt management and cash flow optimization will be critical in sustaining growth and meeting future obligations, including the commercial paper issuance.
