By Tony Obiechina Abuja
Guaranty Trust Holding Company Plc (GTCO) has strengthened the capital base of its flagship subsidiary, Guaranty Trust Bank Limited (GTBank), with a fresh equity injection of ₦365.85bn, ensuring compliance with the new minimum capital requirement for commercial banks with international authorisation as mandated by the Central Bank of Nigeria (CBN).
In a notice issued to the Nigerian Exchange Limited (NGX), GTCO announced that the capital was injected through the issue and allotment of 6,994,050,290 ordinary shares of 50 kobo each by GTBank to its parent company, following a rights issue.
With this development, GTBank’s share capital has risen from ₦138.2bn to ₦4.5trn.
The company emphasized that despite the rights issue, it continues to retain 100 percent ownership of GTBank, as none of its directors hold any direct or indirect interest in the subsidiary.
According to the disclosure, the capital injection was funded through the two-phased equity raising programme approved by GTCO’s shareholders at the 2024 Annual General Meeting and executed in line with approvals secured from relevant regulatory authorities.
GTCO explained that the additional equity will be deployed to drive strategic expansion of GTBank’s branch network, bolster its loan and investment portfolios, strengthen its information technology infrastructure, and position the bank to harness emerging opportunities across Nigeria and other markets where it operates.
“The injection underscores GTCO’s commitment to ensuring GTBank’s long-term financial strength, competitiveness, and ability to deliver value to customers and shareholders, while also meeting regulatory capital adequacy requirements,” the company said.
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Industry analysts note that the move not only aligns GTBank with the CBN’s recapitalisation directive but also places the lender in a stronger position to sustain asset growth amid evolving macroeconomic headwinds.
GTCO reiterated that the recapitalisation supports its growth ambitions while reinforcing confidence in Nigeria’s financial system at a time when banks are racing to comply with tighter capital requirements.
