GTCO Injects N365.9bn into GTBank to Meet CBN Capital Requirement
Guaranty Trust Holding Company Plc (GTCO) has injected N365.9 billion into its banking subsidiary, Guaranty Trust Bank Limited (GTBank), to comply with the Central Bank of Nigeria’s (CBN) new minimum capital requirement for commercial banks with international authorization.
The capital injection was executed through the issuance and allotment of 6,994,050,290 ordinary shares of 50 kobo each by GTBank to GTCO via a rights issue, the company confirmed in a statement filed with both the Nigerian Exchange Limited and the London Stock Exchange on Friday.
This transaction raised GTBank’s share capital from N138.2 billion to N504.0 billion, ensuring full compliance with the CBN’s updated capital requirements. GTCO emphasized that the move does not alter its 100% ownership of GTBank, and no directors of the holding company hold any direct or indirect interest in the bank.
The capital boost was funded through a two-phased equity capital raising program, approved by GTCO shareholders at its 2024 Annual General Meeting and executed in line with all regulatory approvals.
Erhi Obebeduo, GTCO’s Group General Counsel and Company Secretary, stated that the additional funds will be strategically deployed to support growth and expansion. The capital will primarily target branch network expansion, asset growth, including loans, advances, and investment securities, as well as the fortification of the bank’s information technology infrastructure.
GTBank also plans to leverage the new capital to explore emerging opportunities within Nigeria and in other markets where it maintains a banking presence, positioning the bank for sustainable growth in line with its long-term strategy.
Notably, GTCO made history recently by becoming the first West African financial institution to have its shares listed on the London Stock Exchange, marking a significant milestone for the company and the region’s financial sector.
The bank’s shareholders and stakeholders now anticipate that the strengthened capital base will further enhance GTBank’s operational efficiency, resilience, and capacity to compete in Nigeria’s dynamic banking industry.
