Case Studies
Planet Capital Limited is one of the best in financial advisory and capital raise in the Nigerian Investment Banking space. The uniqueness of some of the case studies, as simple as they look is the fact that there were earlier failed attempts. Some of which were out rightly marked “Not Doable” by some top investment banking firms, but Planet Capital Limited cracked these cases. We have a strong reputation in our industry and have a strong conviction in our ability to deliver. Our records speak for itself.
We will be happy to provide our service to you in this regard.
GPC Energy and Logistics LTD
- GPC Energy and Logistics Limited is a leading logistics business in Nigeria.
- Capital market was novel to the company when we approached them, even though they had accessed off-shore funding at the time
- Our proposition was clear as we engaged the client
- Planet Capital managed its rating process and ensured a good “A” rating at the first instance and got InfraCredit support for the transaction for a “AAA” bond rating
- The N20 billion naira raised for the client at 13% in 2021 was enough to liquidate all off-shore borrowings, local foreign currency borrowings, and other local bank loans.
- This long-term capital has set GPC on the path of growth and sustainability.
- fast forward, the Company is receiving bids from strategic investors post the bond issuance, and the value of the Company is significantly up now.
Fidelity Bank PLC
- Planet Capital Limited led Fidelity Bank Plc in its premier bond issuance of N30 billion in 2015. the bond was issued at 16.48%.
- As the yield market improved, we provided financial advisory to Fidelity Bank in exercising the call option on the 2015 N30 billion bond.
- And immediately led other top investment banking firms to take Fidelity Bank back to the market for a N75 billion bond.
- The bond was oversubscribed at 9%. Against our advice, the bank decided a stop rate of 8.5%, raking in N41.213 billion and rejecting over N34 billion by this decision.
- Since then, yield in the market has never returned to that level again, and immediately after, it swung into double digits.
C & I Leasing PLC
- The initial attempt of C & I Leasing Plc to raise capital through bond issuance failed. In April 2018 Planet Capital Limited led a successful relaunch of the process.
- Planet Capital leading, provided its excellent transaction structuring capability to raise N7 billion in bond issuance at 16.5%.
- The 2018 bond issuance was used to clean up the Company’s obligations – foreign currency loans with disturbing FX exposure that was threatening the Company and local currency loans and brought the balance sheet to good health.
- The success of this bond issuance and cleaning up of the balance sheet gave impetus to a subsequent Rights Issue in 2019 and another bond Issuance of N10 billion in 2021.
- In the 2021 bond issuance, Planet Capital raised over 25% of the amount
Tak Logistics Limited
- TAK Logistics Limited is a logistics concern specifically providing logistics support for the distribution of agricultural produce.
- The Company at its infancy, through the financial advisory of Planet Capital was prepared for the capital market, an investment grade corporate rating for a N15 billion bond issuance in 2019. The bond was fully subscribed.
- Through this bond issuance, TAK Logistics raved its business, improved its cash flow, and subsequently became the NSA and CBN sole aggregator.
- As the Company’s efficiency continues to improve and it becomes systemic importance in its service to NSA/CBN, the CBN found it worthy to support the Company in its request for funding.
- The Company therefore accessed CBN subventions and Planet Capital guided the premature liquidation of the bonds with the cheaper CBN funding. Without the initial bond issue, it is unlikely that the Company would have been able to access the CBN fund within such a short time.
