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From Uche Usim
Guaranty Trust Holding Company Plc (GTCO) has secured regulatory approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to raise ₦10 billion through a private placement of its ordinary shares, cementing its capital structure at the holding company level.
The transaction, which remains subject to the fulfilment of applicable conditions precedent and other regulatory requirements, follows earlier disclosures by the financial services group that its banking subsidiary, Guaranty Trust Bank Limited, had already exceeded the CBN’s new minimum capital threshold for commercial banks with international authorisation. As at 29 August 2025, the bank’s capital stood at ₦504.04 billion, comfortably above regulatory requirements.
GTCO clarified that the ₦10 billion capital raise is not driven by the bank’s capital needs, but by provisions under Section 7.1 of the Guidelines for the Licensing and Regulation of Financial Holding Companies in Nigeria, which govern the computation and adequacy of capital at the holding company level.
In a statement signed by the Group General Counsel and Company Secretary, Erhi Obebeduo, the company said the private placement is being undertaken pursuant to a shareholders’ resolution passed at its Annual General Meeting on 9 May 2024. That resolution authorised the Board of Directors to establish a capital-raising programme of up to US$750 million, or its equivalent, using a broad range of instruments and methods.
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The mandate allows GTCO to raise capital through the issuance of ordinary or preference shares, convertible or non-convertible bonds, or other instruments, via public offers, private placements, rights issues, book-building processes, or any combination of these options, in tranches and on terms determined by the Board.
Acting under this authority, the Board has now approved a private placement to raise ₦10 billion through the allotment of 125 million ordinary shares with a nominal value of 50 kobo each. The shares are being offered at ₦80 per share under a best-efforts arrangement, with gross proceeds expected to reach up to ₦10 billion if fully subscribed.
According to the company, the placement is structured to strengthen GTCO’s holding company capital base, aligning it with regulatory expectations while preserving the strong capital position already achieved by its banking subsidiary.
The offering is scheduled to close on 31 December 2025, subject to the satisfaction of all conditions, including the receipt of final approvals where required. GTCO said it will keep the market informed as the transaction progresses.
The move underscores GTCO’s proactive approach to regulatory compliance and balance sheet optimisation, even as it maintains one of the strongest capital positions in Nigeria’s banking sector.
