KEY POINTS
- In the first phase of GTCO’s equity program, the Nigerian bank raises N209 billion.
- The proceeds will recapitalise GTBank Nigeria and support group wide growth.
- In 2025, second phase of recapitalisation begins targeting foreign institutional investors.
Guaranty Trust Holding Company Plc (GTCO Plc) announces the successful completion of the first tranche of its equity capital raise programme, which raised N209.41 billion out of 130,617 valid applications for 4.7 billion ordinary shares.
This offering signifies a major step forward in the group’s phased capitalisation plan as approvals were received from the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC).
Recapitalisation with a balance
The equity raise attracted strong interest, given that domestic retail investors too showed keen interest in it, a reflection of GTCO’s effort to foster a balanced and diverse investor base.
Furthermore, the successful capital verification and allotment process, they (Shareholders and regulators) have confidence in our execution capability and fundamentals,” said Group CEO of GTCO Plc, Segun Agbaje.
“This is a significant mile stone for GTCO as an enabler of transformational growth in both our banking and non banking businesses,” Agbaje said, adding that the group’s strategic roadmap is based on this.
Deployment proceeds in strategic or selective ways
The equity raise will also see proceeds used to refinance Guaranty Trust Bank Limited (GTBank Nigeria) the group’s flagship subsidiary, in line with regulatory requirements and position the bank as a leading financial institution.
Furthermore, the funding will support growth activities across group’s subsidiaries, including footprint expansion, product enhancement and innovation.
GTCO will be launching the second phase of recapitalisation programme in 2025 to trail foreign institutional investors to position the financial services brand as truly an ‘International’ brand.
In line with this commitment, GTCO reiterated its leadership in profitability and financial performance in Africa’s financial services landscape, and its commitment to driving innovation and delivering sustainable value to stakeholders.