Breaking Finance Update: GTCO Boosts GTBank’s Capital to ₦504 Billion

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Olori Uwem

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Mar 18, 2024
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Breaking Finance Update: GTCO Boosts GTBank’s Capital to ₦504 Billion

Guaranty Trust Holding Company (GTCO) Plc has announced a major capital injection into its flagship subsidiary, Guaranty Trust Bank (GTBank) Limited, raising the bank’s paid-up share capital from ₦138.19 billion to ₦504.04 billion.

✨ How it Happened
• GTBank carried out a rights issue subscription of 6.994 billion ordinary shares (₦0.50 each).
• This move brought in a total consideration of ₦365.85 billion, fully funded by GTCO Plc.
• The new capital ensures GTBank complies with the Central Bank of Nigeria’s (CBN) recapitalisation directive for banks with international authorization.

International Backing & Dual Listing Milestone
The capital raise was powered by GTCO’s two-phased equity programme, which included:
• An international offering on the London Stock Exchange (LSE) that secured $105 million from long-term global investors.
• A public offering in Nigeria, which attracted over 130,000 valid applications, raising ₦209.41 billion.
• With this, GTCO became the first West African financial services institution to be dual-listed on the NGX and LSE.

What the Capital Will Be Used For
According to GTCO Group CEO, Segun Agbaje, the funds will be strategically deployed to:
• Expand GTBank’s branch network
• Grow its loan, advances, and investment securities portfolio
• Strengthen IT infrastructure and digital capabilities
• Position the bank for growth in Nigeria and across international markets

Why This Matters for Investors & Customers
1. ✅ Stronger financial base = better stability and resilience.

2. Expansion drive = more reach and customer access.

3. Tech upgrades = improved banking experience.

4. International presence = greater investor confidence.

GTCO retains 100% ownership of GTBank following this recapitalisation, with no director having direct or indirect interest in the deal.

This recapitalisation marks a pivotal step for GTCO’s growth journey, setting the stage for innovation, expansion, and stronger market presence in the years ahead. ✨