GTBank To Raise $750m From Bond, Shares For CBN’s New Capital Requirement

Nigeria’s first-tier lender, Guaranty Trust Holding Company Plc is seeking shareholders’ approval to raise $750m (N922.5bn at N1230/$) capital to meet the new capital requirement set by the Central Bank of Nigeria.

The lender said in a filing seen by THE WHISTLER that the $750m capital will be raised through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments.

The lender hopes to raise the securities through the domestic and international market but it needs the approval of shareholders at the coming Annual General Meeting set for May 9, 2024.

GTCO said, “The Company be and is hereby authorised to raise additional capital of up to $750,000,000.00 (seven hundred and fifty Million United States Dollars only), (or its equivalent in Nigerian Naira), 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, either as a standalone issue(s) or by the establishment of capital raising programme(s), whether by way of public offerings, private placements, rights issues and/or other transaction modes, at price(s), coupon or interest rates determined through book building or any other acceptable valuation method or combination of methods, in such tranches, series or proportions, within such maturity periods and at such dates and upon such terms and conditions as may be determined by the board of directors of the Company (the Board), subject to obtaining the requisite approvals of the relevant regulatory authorities.”

THE WHISTLER had reported that the Central Bank of Nigeria raised the capital requirements of banks to meet its target $1tn economy as well as strengthen bank resilience to shocks.

The capital requirements for banks operating in the country was to N500bn for international, N200bn for national, and regional banks to maintain a minimum share capital of N50bn.

The lender is also proposing to increase issued share capital from N14,715,589,612 of ordinary shares of N0.50 (fifty Kobo) each to N22,215,589,612.

“That the Board be and is hereby authorised to seek the listing and admission to trading of securities issued pursuant to the foregoing resolution, on the Official List of the Nigerian Exchange Limited, the London Stock Exchange plc or on such other stock exchange or exchanges or securities market or markets (as the case may be),” the lender said.