Neveah Limited, an Abuja-based leading commodity trading company, dealing in the export of solid minerals and agricultural products, said it redeemed its obligation of the N2.04 billion Series 13 Commercial Paper (CP) notes issued in July.
A CP is a form of unsecured short-term debt security just like a promissory note or bonds, that enable corporate organisations to raise short-term funds from the capital market.
The maximum period for a CP is 270 days; thus, it is usually used to meet companies’ working capital needs.
This is contained in a statement signed by the Chief Executive Officer of the company, Mr Ibidapo Lawal on Tuesday in Abuja.
“Our objective is to be the foremost export company for Nigeria’s solid minerals and agricultural products in the country.
“This issuance will assist us in meeting our working capital requirements and further strengthen our capacity to realise our objectives.
“We extend our appreciation to all the parties involved in making this a success,” Lawal said.
Lawal further explained that Neveah aimed to continually improve its business processes, thereby delivering value to stakeholders, both internally and externally.
According to him, this is the 13th CP Neveah is coming to the market to raise funding and at maturity, it is obliged to redeem/pay investors who invested through the CP.
He said that Neveah’s major markets were in Europe, North America and Asia.
“The company was recently awarded the 18th fastest growing company in Africa by Financial Times UK.”
According him, Neveah’s transformation since incorporation in 2014 has been marked by the superlative progress, adding that its revenue has grown by 445 per cent between 2019 and third quarter of 2023.
It has also had expansion of its offerings from a small commodity trading operation to a full-fledged food and agri-business, encompassing semi-finished and consumer goods, commodities trading as well as logistics.
“This exceptional growth facilitated the successful registration of a N20 billion Commercial Paper Programme in April.
“Shortly after that, the company raised N2.04 billion via its Series 13 Commercial Paper Issuance, to meet working capital requirements.
The statement also reported the Managing Director, Investment Banking at United Capital Plc, Dr Gbadebo Adenrele, saying “United Capital Plc is excited to have taken on the role of Lead Arranger in supporting Neveah.
“This accomplishment reflects the company’s dedication to realising its strategic growth objectives.