Guaranty Trust Holding Company Plc (GTCO) has boosted the financial strength of its banking arm, Guaranty Trust Bank Limited (GTBank), by raising its paid-up capital to N504 billion.
The fresh injection came through a rights issue in which GTCO subscribed to almost 7 billion new GTBank shares, valued at about N366 billion. This move pushes the bank’s share capital from N138 billion to N504 billion, ensuring it meets the Central Bank of Nigeria’s (CBN) new minimum capital requirement for international banks.
The funds for this recapitalisation were drawn from GTCO’s recently concluded two-phased capital raising programme. The exercise began in July 2024 with a public offer in Nigeria, where GTCO raised N209.41 billion from over 130,000 investors. Later, GTCO listed on the London Stock Exchange (LSE), becoming the first financial services company in West Africa to achieve a dual listing on both the NGX and LSE. The international offer secured $105 million (about N155 billion) from global institutional investors.
Speaking on the milestone, Segun Agbaje, Group Chief Executive Officer of GTCO Plc, described the recapitalisation as a turning point for the Group:
“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.”
GTBank plans to use the new capital to expand its branch network, grow its loan book and investments, and upgrade its technology infrastructure to better serve customers and seize new opportunities in Nigeria and other markets where it operates.
Despite the recapitalisation, GTCO still owns 100% of GTBank, and none of the company’s directors hold any personal stake in the bank.
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