Invest in Neveah Limited’s High-Yield Commercial Paper on AssetBase –

Introduction
With the ongoing diversification of investment options available on AssetBase, investors can now access a unique opportunity with Neveah Limited, a major player in the Nigerian export sector. AssetBase recently announced the listing of Neveah Limited’s Series 16 and 17 Commercial Paper, part of a larger ₦20 billion CP Programme.

This investment offers a competitive implied yield of 30.5% over a 365-day tenor, making it an attractive addition to any portfolio focused on high returns. Below, we explore who Neveah Limited is, why this offering is significant, and how you can participate in this high-yield opportunity.

Everything You Need to Know about Neveah Limited

Founded in 2014, Neveah Limited is a Nigerian-based company recognised for exporting agricultural commodities and solid minerals. The company exports products like hibiscus flowers, ginger, peanuts, lead ore, columbite, and other minerals to various international markets, including the United States, Germany, Portugal, and India. Neveah’s commitment to quality and timely service has earned it a strong reputation in the export sector and solid relationships with local farmers and international buyers.

Since its inception, Neveah has achieved impressive growth, with revenues and profits boosted by rising export volumes and favourable foreign exchange rates. In 2022, the Nigerian Export Promotion Council (NEPC) awarded Neveah the title of “Best Sectoral Exporter of the Year”. It was also recognized as one of the fastest-growing companies in Africa by the Financial Times in 2023. The company’s success is further reflected in its strong BBB+ rating from DataPro, which indicates stable financial strength and sound operational performance.

What The Numbers Look Like

Neveah’s focus on operational efficiency, increased exports, and strategic partnerships have positioned it as a stable, high-growth player in the export market. Here are some key financial highlights:

1. Revenue Growth: The company’s revenues have grown consistently, reaching ₦4.25 billion in operating profit by September 2024.
2. Sustained Profitability: Neveah’s profit before tax grew at an annual compounded rate of 87% over the past five years.
3. Strong Capital Market History: Since 2021, Neveah has raised over ₦25 billion across multiple series of commercial paper issuances, all of which have been fully repaid.

Neveah’s well-established track record in the debt capital market and a demonstrated commitment to meeting obligations make this an exciting investment opportunity for diversifying their portfolios.

The New Commercial Paper Offering

The new commercial paper offering, Series 16 and 17, is part of Neveah’s ₦20 billion Commercial Paper Programme. This programme aims to finance the company’s short-term working capital needs and expand its export operations.

Key Details of the Offering

• Issuer: Neveah Limited
• Programme Size: ₦20 billion
• Issuance Size: Up to ₦7 billion
• Tenor: 268 days
• Implied Yield: 30.5%
• Minimum Subscription: ₦100,000
• Offer Open Date: October 23, 2024
• Maturity Date: July 25, 2025

This commercial paper offers a substantial implied yield of 30.5%, appealing to investors seeking high returns within a relatively short timeframe. With a minimum investment of ₦100,000, this listing is accessible to both new and experienced investors.

Why Invest in Neveah Limited’s Commercial Paper?

Investors may find this an attractive opportunity for several reasons, including its high implied yield, Neveah’s strong market presence, and the stability of Nigeria’s commercial paper market.

1. High Yield with Moderate Risk

Commercial papers offer fixed-income investments with a set interest rate, meaning investors can earn a stable, predictable income. The implied 30.5% yield on this offering is highly competitive and provides a strong return on investment over the 268-day tenor. Given Neveah’s credit rating and strong financial performance, this investment offers an appealing balance of risk and reward.

2. Strong Financial Standing and Market Recognition

Neveah’s consistent profitability, growth, and solid credit ratings add a layer of confidence for investors. A BBB+ rating from DataPro indicates moderate risk, and the company’s success in past commercial paper issuances demonstrates its ability to manage obligations effectively. Neveah’s recent recognition by the Financial Times and NEPC further cements its reputation as a resilient and reliable organization in the Nigerian market.

3. Short-Term Liquidity

The 268-day tenor provides an option for short-term investments rather than long-term commitments. This can be an advantage for investors who want their capital to remain relatively liquid while earning a high return. With its limited duration, the Neveah commercial paper is a viable option for those who might not want to lock their funds in long-term investments.

How to Invest in Neveah Limited’s Commercial Paper on AssetBase

AssetBase provides a straightforward and secure way to invest in this opportunity. Follow these steps to get started:

1. Log into AssetBase: If you’re already an AssetBase user, log in to your account. If you’re new, creating an account is quick and easy.
2. Locate the Neveah Commercial Paper Listing: Go to the investment opportunities section, where you’ll find Neveah Limited’s Series 17 Commercial Paper. Review all the details, including the investment yield, tenor, and terms.
3. Review the Investment Terms: Before committing, review the investment prospectus, including the issuer’s rating, financials, and the use of proceeds.
4. Make Your Investment: Once ready, enter your investment amount (minimum ₦100,000) and complete the transaction. AssetBase provides a secure payment gateway to ensure your investment is safe.

Potential Risks and Considerations

As with any investment, there are risks before investing in commercial papers.

1. Issuer Risk: Although Neveah has a history of meeting its obligations, some risks are always tied to the issuer’s performance.
2. Interest Rate Risk: Market interest rates can affect the attractiveness of fixed-income investments. If rates rise, the value of commercial paper in the secondary market could decline.

To mitigate these risks, investors should evaluate their financial goals, consider their risk tolerance, and consult financial advisors if needed.

The Outlook for Neveah Limited

Neveah Limited’s growth trajectory remains strong, supported by Nigeria’s increasing focus on export diversification. The company’s expansion into solid minerals and consistent innovation in product offerings demonstrate its adaptability and ambition to grow beyond Nigeria’s borders. Neveah's expansion potential is substantial and has an established foothold in several international markets.

The company’s clear strategy, with Nigeria’s favourable export market and the government’s push to diversify the economy, puts Neveah in a prime position to continue its upward growth trend. This offering represents a chance for investors to benefit from Neveah’s success and firm performance while contributing to Nigeria’s economic growth.

Conclusion

Neveah Limited’s Series 17 Commercial Paper listing on AssetBase offers investors a unique opportunity to diversify their portfolios and earn substantial returns quickly. The high yield of 30.5% combined with Neveah’s robust financial position and proven market success makes this a compelling option for those seeking profitable, relatively short-term investments. AssetBase makes it easy to access this opportunity, enabling investors to add a well-vetted commercial paper to their portfolios with minimal hassle.

Neveah Limited's latest commercial paper issuance offers a valuable proposition for investors looking to take advantage of high returns with moderate risk. Log in to AssetBase today to learn more and secure your place in this promising investment.


NB: Investments in private companies are risky and less liquid and investors must carry out their due diligence and evaluation of the issuing companies before they invest as Rise, Chaka, Assetbase and all affiliated companies are not responsible for the investment performance of the assets listed on Assetbase. Private investments are not a fit for every investor, so investors are encouraged to evaluate their risk appetite before investing.