Guaranty Trust Holding Company Plc has increased its investment in Guaranty Trust Bank Limited to N504 billion through a rights issue subscription. The move follows the bank’s acquisition of 6,994,050,290 ordinary shares at 50 kobo each, valued at N365.85 billion. As a result, GTBank’s paid-up share capital has risen from N138.19 billion to N504.04 billion.
The capital injection is aimed at ensuring GTBank’s compliance with the Central Bank of Nigeria’s new minimum capital requirement for commercial banks with international authorization. The funding for this initiative came from a two-phased equity capital raising program undertaken by GTCO Plc, which included an international fully marketed offering on the London Stock Exchange. This offering secured $105 million from 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.
The equity capital program, launched in July 2024, began with a public offering that raised N209.41 billion from 130,617 valid applications for 4.7 billion ordinary shares. The additional equity capital will be used by GTBank to expand its branch network, grow its assets, and enhance its information technology infrastructure. The bank also plans to leverage emerging opportunities in Nigeria and other operating environments.
Following the capital injection, GTCO Plc continues to hold 100% of GTBank’s issued and paid-up share capital. The company’s Group Chief Executive Officer, Mr. Segun Agbaje, stated that the successful recapitalization of GTBank marks a significant step in strengthening the group’s foundation. With the new capital secured, the company is focused on deepening innovation, delivering improved performance, and expanding its footprint across high-growth markets.
The recapitalization of GTBank is a significant development in Nigeria’s banking sector, and it is expected to have a positive impact on the bank’s operations and growth prospects. The move is also seen as a demonstration of GTCO Plc’s commitment to strengthening its subsidiary and positioning it for long-term success. As the bank continues to navigate the evolving banking landscape, its ability to adapt and innovate will be crucial in maintaining its competitive edge.
