GTCO to raise N10bn via private placement

Guaranty Trust Holding Company Plc (GTCO) has notified the Nigerian Exchange and the investing public that it has obtained approval to raise N10 billion through a private placement of ordinary shares as part of its capital optimization programme.

The N10 billion would be raised via sale of 125 million ordinary shares of 50 kobo each at a price of N80 per share. The Private Placement is scheduled to close on December 31, 2025.

According to GTCO, the capital raise is in line with a broader capital-raising programme approved by shareholders at its Annual General Meeting on May 9, 2024. Under the resolution, shareholders authorized the board to raise up to $750 million, or its equivalent, through a mix of instruments including ordinary shares, preference shares, convertible or non-convertible bonds, and other securities. These may be issued through public offers, private placements, rights issues, book-building or other methods as determined by the board.

The company noted that its banking subsidiary, Guaranty Trust Bank Limited, has already met and exceeded the new minimum capital requirement for commercial banks with international authorization, following the recapitalization of its capital to ₦504.03 billion. Consequently, the current private placement is being undertaken at the holding company level in line with Section 7.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies in Nigeria.