Bank recapitalisation: GTCO to launch N400bn public offer

Onwubuke Melvin
Onwubuke Melvin

Guaranty Trust Holding Company, GTCO Plc, has concluded to raise N400 billion in new capital as part of the Central Bank of Nigeria’s recapitalization program.

This was disclosed by the Group Chief Executive Officer, GTCO, Segun Agbaje at the fact behind its public offer presentation at the Nigerian Exchange Limited, NGX on Monday.

Agbaje said “We are going to issue 9 billion ordinary shares at N44.50 per share to the investing public subject to regulatory approval. We are not floating rights issue because we have large retail investors and customers. We want the public to enjoy our success in terms of growth and profitability.

“We are targeting acquisition from the recapitalisation exercise. Whatever money raised part of it could be used for acquisition.

“The net proceeds of the proposed offering will be used for the growth and expansion of the GTCO Plc Group businesses. Such planned growth and expansion will be effected through investment in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisition of non-banking businesses; and the recapitalisation of Guaranty Trust Bank Limited (GTBank Nigeria).”

Regarding its target investors, he said, “The proposed offering was structured as an institution offering targeted at eligible investors and for retail offerings within Nigeria. For the international market, institutional investors would be targeted via private placements.”

On the reorganization of the GTCO as a holding structure, he said: “We believe that the Holding Company structure allowed us to take advantage of new business opportunities in the emerging competitive landscape and strengthen our earnings base. We are very excited to get started on the next phase of our incredible journey to driving Africa’s growth by making end-to-end financial services easily accessible to every African and African Business by leveraging Technology and Strategic Partnerships.”

Commenting the Chairman, NGX Group, Alhaji Umaru Kwairanga praised the GTCO for coming to the Exchange to inform stakeholders of its plans to raise additional cash.

Kwairanga said ” We at the Exchange have already prepared for the market to assist through our electronic platform to ensure seamless participation of the general public in the recapitalisation exercise. We are very sure that GTCO as a very good brand will be successful in this offer.”

Recall in late March, the CBN in a statement by the Acting Director, Corporate Communications, Sidi Ali announced new guidelines on its recapitalisation policy for banks in the country.

In the new guidelines, she said the apex bank had directed commercial banks with international authorisation to increase their capital base to N500bn and national banks to N200bn.

According to Ali, commercial banks with national licenses must satisfy a N200 billion capital threshold, while those with regional authorization are expected to reach a N50 billion capital ceiling.

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