• Monday, May 27, 2024
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GTCO eyes $750mn rights issue to meet new capital rules

GTCO to list shares on London, Nigerian Exchanges

GTCO Plc plans to raise $750 million through a rights issue, the lender said in a notice filed on the Nigerian Exchange Group (NGX) Friday.

The plan is to raise the additional capital of up to $750 million through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments, in the Nigerian and/or international capital markets.

Read also: GTCO grows full year pre-tax profit by 184.5% to N609.3bn

The plan was detailed in a notice ahead of its third Annual General Meeting to be held in May 9.

This comes as the Central Bank of Nigeria (CBN) announced a ten-fold jump in minimum capital requirements for banks, nearly two decades since the last exercise last month.

The minimum capital requirement was raised to N500 billion for those with international authorization, N200 billion for commercial banks with national authorization, and N50 billion for those with regional authorization.

Eight banks with international operations are expected to raise their capital requirements of N500 billion, which includes all tier one banks, Fidelity Bank, FCMB and Union Bank.

Details later…