Guaranty Trust Holding Company Plc (GTCO) has secured regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to proceed with a private placement of its ordinary shares, the company announced on the Nigerian Exchange (NGX). The move is, however, subject to the fulfilment of regulatory conditions.
The private placement aims to raise N10 billion through the allotment of 125 million ordinary shares at N80 per share, as part of a broader capital-raising programme approved by shareholders at the company’s 2024 annual general meeting. The shareholders had authorised the board to pursue capital-raising initiatives of up to $750 million (or its equivalent) via ordinary shares, preference shares, convertible or non-convertible bonds, public offerings, private placements, rights issues, or any combination of these instruments.
GTCO said the offering is structured as a best-efforts private placement and is not underwritten. Professional parties involved will use reasonable endeavours to secure a placee for the shares, which are scheduled to close on December 31, 2025, pending all necessary approvals.
The transaction falls under Section 7.1 of the guidelines for licensing and regulation of financial holding companies (FHCs) in Nigeria, which governs the computation of capital for FHCs.
This development follows the announcement by Guaranty Trust Bank Limited, GTCO’s banking subsidiary, that it had surpassed the CBN’s minimum capital requirement for commercial banks with international authorisation. The bank’s capital base now stands at N504 billion, reinforcing the group’s financial strength as it embarks on this latest capital-raising initiative.
The private placement is seen as a strategic step to support GTCO’s growth, strengthen its capital base, and provide flexibility for future expansion.