GTCO raises N209.4 billion in first tranche of CBN-mandated recapitalisation

Guaranty Trust Holding Company (GTCO) said on 6 January 2025 that it had raised N209.41 billion in the first tranche of its equity capital raise programme, part of the recapitalisation exercise required of Nigerian banks by the Central Bank of Nigeria (CBN).

The group said the offer attracted 130,617 valid applications for 4.706 billion ordinary shares, which were fully allotted. The announcement followed completion of a capital verification exercise by the CBN and approval of the basis of allotment by the Securities and Exchange Commission (SEC).

GTCO opened the public offer on 15 July 2024, offering nine billion ordinary shares of 50 kobo each at N44.50 per share, an offer size of N400.5 billion. The group said the programme was structured on an equal split between institutional and retail investors, and that the offer drew substantial interest from domestic retail investors.

SECOND PHASE PLANNED FOR 2025

The CBN has set a minimum capital requirement of N500 billion for commercial banks with international licences, with banks required to comply by 31 March 2026. GTCO said the completed offer concluded the first phase of its phased equity capital raise and that the second phase, due to begin in 2025, would be positioned to attract foreign institutional investment.

“The strong participation and successful capital verification exercise and allotment process reaffirm the confidence investors have in our fundamentals and execution capabilities,” said Segun Agbaje, group chief executive officer of GTCO.

Agbaje said proceeds from the combined equity raise would be used to recapitalise the group's flagship subsidiary, Guaranty Trust Bank Limited, strengthening its ability to meet regulatory requirements, and to support group-wide growth initiatives including footprint expansion, product enhancement and innovation across its banking and non-banking subsidiaries.