FMDQ Exchange admits Nigerian Breweries’, Neveah’s commercial papers

NIGERIA – Nigerian companies are increasing turning to commercial papers which are more short term, to raise working capital.

The FMDQ, Africa’s first vertically integrated financial market infrastructure group, through its subsidiary FMDQ Securities Exchange Limited has announced the registration of Nigerian Breweries’ N100billion (US$235m) Commercial Paper (CP) on its platform.

The successful registration of this CP Programme, which is sponsored by Stanbic IBTC Capital Limited (the Lead Sponsor), FCMB Capital Markets Limited and FBNQuest Merchant Bank Limited, strategically positions the Issuer to raise short-term finance from the Nigerian debt markets.

Meanwhile, Neveah Limited, a commodity trading company dealing in the export of agricultural products, has completed its Series 5 Commercial Paper Issuance.

The issuance that received the approval of FMDQ, was subscribed to by investors including asset managers and trustees.

According to the company, the successful completion of the Series 5 Commercial Paper Issuance affirms Neveah’s strategic objective to evolve into a leading dealer and exporter of world-class quality solid minerals and agro-commodities to its clients while ensuring a transparent business approach.

The Chief Executive Officer Neveah, Mr. Ibidapo Lawal said, “Our goal is to become the apex export firm for solid minerals and agro products in Nigeria.

“This issuance will help meet our working capital needs and further enhance our capacity to achieve our goals. We are grateful to all the parties who made this a success.

The debt financing rounds came on the heels of ratings of A1 (short-term) and BBB (long-term) with a positive outlook retained from DataPro Ratings.

The Managing Director/CEO, Investment Banking at United Capital Plc, Dr. Gbadebo Adenrele stated that, “United Capital Plc is pleased to act as Lead Arranger to Neveah on its successful capital raising rounds which support the company’s strategic growth objectives and will continue to leverage on its deep knowledge of the capital markets to provide the right support for SMEs and mid-market businesses seeking to access funding.”

Completion of the Series 5 Commercial Paper Issuance by Neveah comes barely a month since the agro-commodities exporter announced the quotation of its Series 3 and Series 4 Commercial Paper Issuances on the FMDQ Exchange totalling N5.7 billion (US$13.7 million).

Neveah Limited is registered by the Nigerian Export Promotion Council (NEPC) as an exporter of agro-commodities and solid minerals.

The company was established in 2014 and has its head office in Abuja and operational offices in five states.

Neveah’s major markets are in Europe, North America and Asia, where it exports commodities to Switzerland, Germany, The United States, Hong Kong and China.

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