Neveah Redeems ₦23.33bn Commercial Papers Across 5 Commercial Paper Series, Boosts Investor Confidence

■Ibidapo Lawal: redemption reflects strength of our business fundamentals, disciplined financial stewardship, robust cash flow generation capabilities.

■United Capital says timely repayment strengthens access to debt capital market

James Emejo in Abuja

Neveah Limited said it has redeemed ₦23.33 billion raised through five commercial paper issuances.

This reinforces its repayment record in the country’s debt capital market, potentially strengthening the company’s capacity to attract fresh funding.

The commodities export and manufacturing company said the redemption covered Series 1 to 5 issued under its ₦30 billion Commercial Paper Programme.

The five issuances comprised ₦3.47 billion for Series 1, ₦8.28 billion for Series 2, ₦5.50 billion for Series 3, ₦4.49 billion for Series 4 and ₦1.60 billion for Series 5.

The repayment represented the settlement of all series under the programme, although the company did not disclose the respective maturity dates or the specific periods within which the instruments were redeemed.

Managing Director of Neveah Limited, Ibidapo Lawal, attributed the development to the company’s liquidity position, cash flow generation and disciplined financial management.

He said the successful settlement reflected the strength of its business fundamentals and commitment to meeting obligations to investors and other stakeholders.

Lawal added that the repayment would reinforce the company’s credibility in the Nigerian debt market as it pursues its long-term growth strategy.

He said, “The successful redemption of our obligations under the Commercial Paper Programme reflects the strength of our business fundamentals, disciplined financial stewardship, and robust cash flow generation capabilities.

“We are deeply appreciative of the confidence and support extended to us by our investors, and business partners throughout this period. 

“This milestone not only reinforces our credibility in the Nigerian debt capital market but also shows our commitment to maintaining the highest standards of corporate governance and financial responsibility.

” As we continue to execute our long-term growth strategy, we remain focused on creating sustainable value for all stakeholders while contributing meaningfully to Nigeria’s economic development.”

The transaction further highlights the importance of repayment discipline in sustaining investor appetite for commercial paper and other short-term funding instruments.

Managing Director, United Capital Investment Banking, lead arranger of the issuances, Dr. Gbadebo Adenrele, said the redemption demonstrated the importance of issuers honouring their commitments to investors.

He noted that a consistent record of meeting repayment obligations was critical to building confidence and sustaining companies’ access to the debt market.

According to him, investor confidence in issuers helps channel capital to businesses seeking funding for expansion and other growth opportunities.

He said, “The successful redemption of these Commercial Papers is a positive outcome for Neveah and a reflection of the importance of meeting commitments to investors. 

“For companies looking to raise capital, a track record of honouring obligations helps build investor confidence and supports continued access to the debt capital market.

“A market where investors have confidence in issuers is better positioned to channel capital to businesses that need it to grow. We congratulate Neveah  on the successful redemption of all five series under its Commercial Paper 

Programme.”

He congratulated Neveah on redeeming all five series, describing the development as a positive outcome for the company and the market.

Neveah is a Nigerian-owned commodities company involved in sourcing, processing, manufacturing and exporting agricultural commodities and metals to domestic and international markets.

The company said it would continue to pursue strategic opportunities to expand its market presence and create long-term value for its investors, shareholders and other stakeholders.