GTCO Plans N10bn Capital Raise Through Private Placement

Guaranty Trust Holding Company Plc (GTCO) has secured regulatory approvals to raise ₦10 billion through a private placement of ordinary shares as part of its capital optimisation programme.

In a notice filed with the Nigerian Exchange, the financial services holding company said it had obtained approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to proceed with the transaction, subject to the fulfilment of applicable conditions precedent and regulatory requirements.

The private placement will involve the issuance of 125 million ordinary shares of 50 kobo each at a price of ₦80 per share, translating to gross proceeds of up to ₦10 billion. The offer is being executed on a best-efforts basis and is not underwritten, the company disclosed.

GTCO said 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 authorised 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 authorisation, following the recapitalisation 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.

According to the disclosure, GTCO has entered into arrangements with professional parties to place the shares, with the offer scheduled to close on December 31, 2025, subject to the receipt of all necessary approvals.

The company added that further details on the placement would be communicated as the process progresses, in compliance with regulatory requirements and market disclosure standards.