In order to satisfy the new minimum capital requirement set by the Central Bank of Nigeria for commercial banks with international authorization, Guaranty Trust Holding Company Plc invested N365.9 billion in its banking subsidiary, Guaranty Trust Bank Limited.
In a statement submitted to the London Stock Exchange and Nigerian Exchange Limited on Friday, the business stated that the capital infusion was carried out by the bank issuing and allocating 6,994,050,290 ordinary shares of 50 kobo each to the holding company through a rights issue.
“Through this capital injection, the share capital of GTBank has been increased from N138,186,703,485.78 to N504,037,107,058.45 and ensures the bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the Central Bank of Nigeria,” the statement read.
It added that the transaction was funded through the two-phased equity capital raising programme approved by shareholders of the holding company at its 2024 Annual General Meeting and subsequently executed in line with regulatory approvals.
Following the completion of the capital injection, GTCO confirmed that it continues to hold 100 per cent of the entire issued and paid-up share capital of GTBank. It also noted that none of the directors of the holding company has any interest, direct or indirect, in the bank.
According to the statement signed by the Group General Counsel and Company Secretary, Erhi Obebeduo, the additional funds will be deployed for growth and expansion across strategic areas.
“The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure, and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence,” the company stated.
