Guaranty Trust Holding Company Plc has injected N365.9bn into its banking subsidiary, Guaranty Trust Bank Limited, to meet the new minimum capital requirement set by the Central Bank of Nigeria for commercial banks with international authorisation.
The company, in a statement filed with the Nigerian Exchange Limited and the London Stock Exchange on Friday, said the capital injection was executed through the issue and allotment of 6,994,050,290 ordinary shares of fifty kobo each by the bank to the holding company by way of a rights issue.
“Through this capital injection, the share capital of GTBank has been increased from N138,186,703,485.78 to N504,037,107,058.45 and ensures the bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the Central Bank of Nigeria,” the statement read.
It added that the transaction was funded through the two-phased equity capital raising programme approved by shareholders of the holding company at its 2024 Annual General Meeting and subsequently executed in line with regulatory approvals.
Following the completion of the capital injection, GTCO confirmed that it continues to hold 100 per cent of the entire issued and paid-up share capital of GTBank. It also noted that none of the directors of the holding company has any interest, direct or indirect, in the bank.
According to the statement signed by the Group General Counsel and Company Secretary, Erhi Obebeduo, the additional funds will be deployed for growth and expansion across strategic areas.
“The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” the company stated.
“The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” the statement partly reads.
The bank further stated that the cap824&u_wital injection ensures GTBank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the CBN.
It added that the “capital injection was funded by the two-phased equity capital raising programme recently undertaken and concluded by GTCO Plc with an international fully marketed offering on the London Stock Exchange that secured $105m from high-quality, long-term institutional investors in exchange for 2.29 billion new ordinary shares, making GTCO Plc the first financial services institution in West Africa to dual list on both the NGX and LSE.”
It continued, “Launched in July 2024, GTCO’s equity capital programme began with a public offering to Nigerians that raised ₦209.41bn from 130,617 valid applications for 4.7 billion ordinary shares, fully allotted and evenly split between retail and institutional investors.”
Commenting on the recapitalisation of Guaranty Trust Bank Ltd, Group Chief Executive Officer of GTCO Plc, Segun Agbaje, said, “The successful recapitalisation of our flagship banking subsidiary, Guaranty Trust Bank Limited, marks a pivotal step in strengthening the foundation of our Group.
“With significant new capital secured and the CBN’s recapitalisation directive for Guaranty Trust Bank now fulfilled, we are focused on deepening innovation and service excellence, delivering improved performance, and expanding our footprint across high-growth markets, while upholding the industry-leading standards that define the GTCO brand.”
The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans, advances, and investment securities portfolio), fortification of its information technology infrastructure, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence.
“Following the capital injection, the company continues to hold 100 per cent of the entire issued and paid-up share capital of the bank. None of the Directors of the company has any interest, direct or indirect, in the bank,” the statement concluded.
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