Guaranty Trust Holding Company Plc (NGX: GTCO, LSE: GTCO) has strengthened the capital base of its banking subsidiary, Guaranty Trust Bank Limited (GTBank), with a fresh equity injection of N365.85 billion through a rights issue.
According to a statement on the Nigerian Exchange Group (NGX) on Friday, the company said the additional funding was raised under the firm’s two-phased equity capital programme approved by shareholders at its 2024 Annual General Meeting and implemented in line with approvals obtained from regulators.
As part of the transaction, GTBank issued and allotted 6,994,050,290 ordinary shares of fifty kobo each made by the bank to the company. “The company continues to hold 100 percent of the entire issued and paid-up share capital of the bank. None of the directors of the company have any interest, direct or indirect, in the bank,” the statement said.
Read also: GTCO surges to N122 per share on London Stock Exchange
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With this capital injection, GTBank’s share capital has risen from N138.19 billion to N504.04 billion, positioning the lender in compliance with the Central Bank of Nigeria’s (CBN) new minimum capital requirement for banks with international authorisation.
According to the group, the fresh equity will be channelled into branch network expansion, growth of its loan and investment securities portfolio, and upgrades to its information technology infrastructure.
“The bank also plans to leverage the strengthened balance sheet to tap into emerging opportunities across Nigeria and the operating environments where it maintains banking presence,” the statement reads.
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