GTCO injects N365.9bn into GTBank to boost capital base, expansion drive

Guaranty Trust Holding Company Plc (GTCO) has infused N365.9bn into its banking subsidiary, Guaranty Trust Bank Limited (GTBank), to comply with the Central Bank of Nigeria’s (CBN) new minimum capital requirement for lenders with international authorisation.

In a regulatory filing with the Nigerian Exchange Limited and the London Stock Exchange on Friday, GTCO said the capital injection was executed through the issuance and allotment of 6,994,050,290 ordinary shares of 50 kobo each by the bank to the holding company via a rights issue.

With this move, GTBank’s share capital has risen from N138.19bn to N504.04bn, ensuring full compliance with the CBN directive.

The transaction was funded through a two-phase equity capital raising programme approved by GTCO shareholders at its 2024 Annual General Meeting and implemented in line with regulatory approvals.

Following the capital injection, GTCO retains 100 per cent ownership of GTBank. The company also disclosed that none of its directors has any direct or indirect interest in the subsidiary.

According to a statement signed by Group General Counsel and Company Secretary, Erhi Obebeduo, the additional funds will support strategic growth initiatives.

“The equity capital will be deployed by GTBank primarily for branch network expansion, asset growth (including loans, advances, and investment securities), fortification of information technology infrastructure, and to leverage emerging opportunities in Nigeria and other markets where it operates,” the statement said.

The development comes a day after GTCO became the first West African financial institution to list its shares on the London Stock Exchange, marking a major milestone for the group.