Guaranty Trust Holding Company Plc (GTCO) has announced a ₦365.85 billion capital injection into its subsidiary, Guaranty Trust Bank Limited (GTBank), raising the bank’s capital base to ₦504.04 billion in line with the Central Bank of Nigeria’s (CBN) new recapitalisation requirements.
In a notice filed owith the Nigerian Exalter, GTCO stated on Monday that : “GTCO announces that the company has increased its investment in its wholly owned subsidiary, Guaranty Trust Bank Limited through the issue and allotment of 6,994,050,290 ordinary shares of fifty kobo each created by the bank to the company by way of a rights issue, for a total consideration of ₦365,850,403,572.67.”
It added: “Following the capital injection, the company continues to hold 100 per cent of the entire issued and paid-up share capital of the Bank. None of the directors of the company has any interest, direct or indirect, in the bank.”
The funds, GTCO explained, will be deployed to expand GTBank’s branch network, grow its loan book and investments, fortify IT infrastructure, and pursue opportunities across markets where the bank operates.
“Through this capital injection, the share capital of GTBank has been increased from ₦138.18 billion to ₦504.03 billion and ensures the bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation stipulated by the CBN,” the company stated.
GTBank now joins Access Bank and Zenith Bank as tier-1 lconcludeers that have met the new threshold. GTCO shares closed at ₦92 per share on the Nigerian Exalter on August 29.
Nume Ekeghe and Kayode Tokede
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