Onome Amuge
Guaranty Trust Holding Company (GTCO) has boosted the capital base of its flagship banking subsidiary, Guaranty Trust Bank Limited, to N504 billion following a major rights issue, ensuring compliance with the Central Bank of Nigeria’s new minimum capital requirements for lenders with international authorisation.
The recapitalisation, achieved through the subscription of nearly 7 billion new ordinary shares issued by GTBank at a total consideration of N365.9 billion, raises the lender’s paid-up share capital from N138.2 billion to N504 billion. GTCO retains full ownership of the bank, which accounts for the bulk of the group’s earnings.
The move comes on the back of a two-phase equity raising programme by the holding company that generated significant investor demand both at home and abroad. GTCO completed a public offering in Nigeria in 2024 that raised N209.4 billion from more than 130,000 applications evenly split between retail and institutional investors. That was followed by an international marketed offering on the London Stock Exchange (LSE), which secured $105 million from long-term institutional investors for 2.29 billion new ordinary shares. The dual listing made GTCO the first West African financial services institution to trade on both the Nigerian Exchange (NGX) and the LSE.
Segun Agbaje, GTCO’s group chief executive, described the recapitalisation as a pivotal step in strengthening the foundation of our group. He added: “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.”
The fresh equity capital will be deployed by GTBank to expand its branch network, grow its loan book and investment securities portfolio, and fortify its information technology infrastructure. The bank is also targeting emerging opportunities in Nigeria and its other operating markets across Africa and the UK, where competition for retail deposits and corporate banking clients is intensifying.
Nigeria’s central bank in March ordered commercial banks with international operations to raise their minimum capital to N500 billion by 2026 in a sweeping recapitalisation programme aimed at strengthening balance sheets, improving financial stability, and preparing lenders for anticipated credit expansion under the government’s economic reforms.
With its new capital position secured, GTBank is among the first tier-one banks to meet the CBN’s threshold ahead of schedule, potentially giving it greater room to grow assets and consolidate market share in a crowded and fast-evolving sector.
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