Valency Agro Nigeria Limited: Investing in Nigeria’s Agricultural Future
As the global demand for agricultural commodities continues to rise, Nigeria’s agro-processing sector is increasingly becoming a focal point for international trade and investment. Valency Agro Nigeria Limited, a major player in the agro-export industry, has seized this opportunity, positioning itself as one of the largest non-oil exporters in the country.
Now, AssetBase is giving you the chance to participate in Valency’s growth story through the ₦10 billion Series 12 Commercial Paper Issuance, which is open to investors on our platform.
This is not just another financial instrument — it’s an opportunity to invest in one of Nigeria’s leading agro-processing companies, supported by impressive financial performance and a robust market presence. Here’s why you should consider this investment.
About Valency Agro Nigeria Limited
Valency Agro has established itself as a powerhouse in Nigeria’s agricultural export sector. With its diversified portfolio, which includes cashew nuts, sesame seeds, soybeans, cocoa, ginger, and other agricultural commodities, the company is positioned to meet the growing global demand for these products.
The company started as Valency Cashew Processing Limited in December 2013 and rebranded to Valency Agro Nigeria Limited in 2019. Since then, it has grown into a multi-billion-naira operation with processing plants across Nigeria, including in Lagos, Ogun, Kano, and Oyo states. It operates the largest cashew processing facility in Ogun State, providing direct employment and serving as a key contributor to Nigeria’s agricultural value chain.
Valency markets the Nutrinutz brand of cashew nuts, which is available in variants like Chilli Pepper, Roasted & Salted, and Honey-Coated. These products are marketed both domestically and internationally, solidifying Valency's position in the global market.
Why Invest in Valency Agro?
Valency Agro’s growth story is one of steady expansion, resilient profitability, and an ability to adapt to market conditions. Here’s why it stands out as an attractive investment opportunity:
1. Strong Financial Performance
Valency’s financial performance has been exceptional. For the period from April 2024 to December 2024, the company reported ₦242.3 billion in revenue, a 41.12% increase compared to the same period in 2023. This rapid revenue growth underscores the company’s ability to expand its market presence and diversify its product offerings.
Its gross profit stood at ₦35.7 billion, representing a 32.4% increase from the previous year, while its net profit grew by 42.38% to ₦14.1 billion. These impressive figures highlight the company's robust financial health and operational efficiency.
2. Strong Asset Base and Low Leverage
Valency’s total assets grew to ₦220.6 billion in December 2024, up from ₦192.9 billion in March 2024. This expansion was driven by increases in inventories and trade receivables, indicating strong demand for its products.
The company’s debt-to-equity ratio stands at 1.54, a prudent figure compared to industry standards, reflecting responsible financial management. This ratio signals that Valency maintains a solid capital structure, with sufficient equity cushion to withstand economic volatility.
3. Diversified Revenue Streams
Valency’s diversified portfolio of agricultural commodities allows the company to mitigate risks associated with market fluctuations in any single commodity. From cashew nuts to sesame seeds, cocoa, and ginger, Valency is involved in a variety of sectors within the agricultural space. This not only broadens its revenue base but also positions the company as a key player in Nigeria’s export-driven growth.
4. Vertical Integration
Valency has invested heavily in vertical integration. The company owns its processing plants, warehouses, and logistics infrastructure, allowing it to control costs, ensure consistent product quality, and optimise supply chain operations. This integrated approach gives Valency a competitive edge, enabling the company to scale effectively and efficiently.
Investment Opportunity: The ₦10 Billion Series 12 Commercial Paper
Valency is seeking to raise up to ₦10 billion through its Series 12 Commercial Paper Issuance, available now on AssetBase. The proceeds will be used to fund the company’s short-term working capital requirements, ensuring that it can meet its operational needs as it continues to scale.
Investment Snapshot:
- Issuer: Valency Agro Nigeria Limited
- Series: 12
- Target Size: ₦10 billion
- Annual Implied Yield: 28%
- Gross Expected Yield (after fees & tax): 20.71%
- Minimum Investment: ₦100,000
- Offer Opens: May 8, 2025
- Maturity: February 2, 2026
- Use of Funds: Short-term working capital
Yield and Risk Considerations
The commercial paper offers a 28% annualised yield, which is a strong return for short-term investors. However, it’s important to note that the yield is subject to a 10% withholding tax (WHT) and a 2% processing fee, which will be deducted from the interest earned not your principal. This brings the gross expected yield to 20.71% after fees and tax, which is still a competitive return for a short-term, relatively low-risk investment.
The issuer is rated BBB+ by GCR Ratings and A by DataPro, indicating that Valency Agro is a reliable borrower with solid financials and strong market position.
Why You Should Consider This Opportunity
1. Short-Term Investment, High Returns With a 270-day tenor, this commercial paper is ideal for those looking for a high-yield, short-term investment. You’ll earn competitive returns in just under a year.
2. Backed by a Leading Agro-Exporter Valency Agro is a proven player in Nigeria’s agricultural sector, with strong financials and a diversified revenue base. This gives the company the resilience needed to weather market fluctuations and deliver consistent performance.
3. Transparent and Secure Investing through AssetBase ensures that the process is straightforward, secure, and fully transparent. All fees and taxes are disclosed upfront, so you know exactly what to expect.
How to Invest
Ready to get started? Here’s how:
- Create an AssetBase Account (if you don’t already have one).
- Browse the Valency Agro listing and make your investment.
- Enjoy high returns as you watch your investment grow.
Important Notice:
The yield payable on the commercial paper is subject to a 10% Withholding Tax (WHT) and a 2% processing fee both are deducted from the interest earned, not your capital.
