Everything You Need to Know About FairMoney Commercial Paper

Yemi

15 Nov 2024 — 4 min read

AssetBase is proud to announce the Series III Commercial Paper (CP) Issuance launched by MyCredit Investments Limited, better known as FairMoney Nigeria. This offering presents a unique opportunity for savvy investors to achieve significant returns with an implied annual yield of 32% over a 270-day tenor.

FairMoney’s strong reputation as a digital lending leader and impressive financial track record make this CP issuance a compelling addition to your portfolio. Let’s explore why this is the investment opportunity you’ve been waiting for.

About MyCredit Investment Limited (FairMoney)

Established in 2017, MyCredit Investment Limited is a key player in Nigeria’s growing fintech and microfinance sectors through its subsidiary, FairMoney Microfinance Bank Limited (FairMoney MFB). FairMoney is a digital financial institution that focuses on providing micro-loans and mobile banking services with a mission to serve underserved populations in Nigeria, Uganda, and Zambia. With over ₦500 billion in loans disbursed, Nigeria’s largest domestic digital lender serves more than 7 million customers.

FairMoney has become a household name in a very short period, especially in Nigeria's fintech space. Its platform offers instant digital loans, payment solutions, and mobile banking services, making it an ideal choice for individuals and small businesses that require quick access to financial services. Its mobile app allows users to apply for loans, pay bills, buy airtime, and perform various other transactions seamlessly.Key highlights of FairMoney’s journey include:

Innovative Products: From instant digital loans to savings products like FairSave and FairLock, FairMoney’s offerings address the financial needs of everyday consumers.
Rapid Growth: FairMoney processes ₦3.5 trillion annually, with over 140 million transactions completed across its platforms.
Strong Financials: In H1 2024, FairMoney reported revenue of ₦47.2 billion, up 36% from the same period in 2023.
Trusted by Investors: Rated A3 (GCR) and A2 (Datapro) for its financial strength and disciplined lending practices.

Financial Health and Growth

FairMoney has demonstrated exceptional growth in terms of customer base and financial performance. Its revenue for FY2023 stood at an impressive NGN74 billion, up from NGN61 billion in 2022, marking a compound annual growth rate (CAGR) of 58% from 2021. Projections suggest that this revenue figure will climb to NGN94 billion by 2024.

The company's credit management has also improved significantly, with the expected credit loss as a percentage of revenue dropping from 75% in 2022 to 62% in 2023 and further improving to 52% in the first half of 2024. This improvement is a direct result of FairMoney's commitment to tightening its credit risk assessment methodologies and localising its loan recovery team to enhance efficiency.

FairMoney's parent company, Predictus SAS, based in Paris, oversees the company’s operations across Nigeria and India. With a successful $42 million Series B funding round and the launch of an N10 billion local currency private note program, the company has attracted significant interest from institutional investors. This substantial backing, combined with FairMoney’s solid liquidity position and investment-grade ratings from Global Credit Ratings (GCR), positions it as a reliable player in the debt market.

FairMoney’s commercial paper issuance program underlines the company's growth trajectory and solid financial footing. The company's strategic focus on expanding its lending portfolio and disciplined lending practices have helped keep non-performing loan levels low. These factors contribute to FairMoney's high investment-grade ratings, which testify to its solid balance sheet and strong profitability.

Investment Opportunity: Key Details

Here’s a breakdown of the investment opportunity available for you:

Issuer: MyCredit Investments Limited (FairMoney)
Arranger: Emerging Africa Capital Advisory Limited
Programme Size: NGN4.0 billion
Tenor: 270 days
Implied Yield: 32.0%
Offer Open Date: November 14th, 2024
Maturity Date: August 11, 2025
Minimum Subscription: NGN100,000
Additional Security: Deed of Share Charge
Use of Proceeds: The net proceeds will support FairMoney’s short-term working capital.

This commercial paper offers a compelling annual implied yield of 32.0%, backed by FairMoney's robust financial performance. Investors can expect the investment to mature in 270 days, with a minimum subscription of NGN100,000, making it accessible for both small and institutional investors.

Why Invest in FairMoney Commercial Paper Issuance Programme?

FairMoney’s commercial paper offering provides a unique opportunity for investors to participate in a high-growth, high-potential business. Here are some reasons why this investment stands out:

Strong Growth Trajectory: FairMoney has demonstrated exceptional growth over the past few years, with a solid revenue trajectory and plans for further expansion across Africa.
High Yield: This commercial paper offers an annual implied yield of 32.0%. It provides an attractive return significantly higher than many comparable debt instruments in the market.
Institutional Backing: FairMoney has attracted significant institutional interest, including a successful $42 million Series B funding round and strong support from institutional investors in its private note issuance programme.
Short Tenor: With a tenor of 270 days, this is an ideal opportunity for investors looking for short-term investments with solid returns.

How to Participate

Participating in this investment opportunity is straightforward. Follow these steps to get started:

Log into your AssetBase account: If you don’t yet have one, simply create one at www.assetbase.capital.
Navigate to the FairMoney investment listing: Once logged in, search for FairMoney’s commercial paper under the available listings.
Review the terms and conditions: Carefully read through all the investment details, including the terms of the commercial paper.
Make your investment: Once ready, enter the amount you want to invest and complete the transaction.

Conclusion

FairMoney’s Series 3 commercial paper issuance is a unique opportunity to invest in one of Africa’s leading fintech companies, offering an impressive yield of 32.0%. With strong institutional backing, a solid financial track record, and a clear growth path, FairMoney is well-positioned to deliver strong returns to its investors.

We have limited allocation for this offering, so don’t miss out on this exciting opportunity. Log in to AssetBase today and use this high-yield, short-term investment. For any questions or additional information, don't hesitate to get in touch with our support team at hello@assetbase.capital.