GTCO targets July for N500 billion capital raise
The Guaranty Trust Holding Company Plc is targeting the Month of July to raise about N500 billion in compliance to the Central Bank of Nigeria (CBN) mandate to all commercial banks in Nigeria to recapitalize to N500 billion.
This was disclosed in a notice of its preliminary prospectus filed with the Securities and Exchange Commission.
The banking group is seeking to raise about N500bn via the issuance of its ordinary shares of 50 kobo each.
The number of shares and the price range for the offering are yet to be disclosed.
The proposed offering by GTCO Holding Limited, is the first issuance under the programme.
Recall CBN in a statement issued on 28 March 2024, said the new minimum capital base for commercial banks with international licences is NGN500 billion (US$402.5 million), while that for commercial banks with national licences is NGN200 billion.
On the use of the proceeds of the offer, GTCO said, “The net proceeds of the proposed offering will be used for (i) 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 (ii) the recapitalisation of Guaranty Trust Bank Limited (GTBank Nigeria).”
Regarding its target investors, the group 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.
Earlier in the year, GTCO indicated plans to raise $750m in capital, following the announcement of new capital requirements for banks by the Central Bank of Nigeria.
Guaranty Trust Holding said it could issue shares or bonds in Nigeria or internationally to raise the funds.
The group added that the filing of its preliminary prospectus was undertaken with a concurrent filing of a preliminary universal shelf registration statement, permitting it to establish a multi-currency securities issuance programme, “To issue various types of securities, or any combination of such securities, in one or more offerings, from time to time, to raise proceeds in an aggregate amount of up to $750m (or equivalent amount in Nigerian Naira) in the Nigerian/international capital markets during the validity period of the Programme”.
Source: punchng.com
