Neveah Launches N9bn Commercial Paper to Strengthen Working Capital

Neveah Limited has announced the issuance of a N9 billion commercial paper under its N30 billion programme as part of efforts to support its short-term financing needs.

The proceeds from the issuance will be used to fund working capital, including expanding procurement capacity and improving logistics operations to meet rising demand across its metals and agricultural business segments.

The offer, which opened on March 24, 2026, is scheduled to close on March 30, 2026.

Details from the offer circular show that the issuance is structured across three series with varying tenors and returns. Series 5 has a tenor of 181 days, Series 6 spans 268 days, while Series 7 runs for 364 days.

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Discount rates are set at 19.0194 per cent for Series 5, 19.3099 per cent for Series 6, and 19.3651 per cent for Series 7, while implied yields stand at 21.00 per cent, 22.50 per cent, and 24.00 per cent respectively.

The instrument carries a short-term rating of BBB+ and requires a minimum subscription of N5 million, with additional investments in multiples of N1,000.

Commercial papers are typically unsecured short-term debt instruments used by companies to finance operational needs, meaning investors must assess the issuer’s creditworthiness before participating.

With yields ranging between 21 and 24 per cent, the offering presents a relatively attractive return compared to government securities, though it comes with higher credit risk.

Analysts advise investors to carefully evaluate the company’s financial strength, repayment capacity, and track record before committing funds.