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GTCO Seeks SEC Approval For N500bn Offering To Recapitalise GTBank

Guaranty Trust Company Plc (GTCO), the parent company of Guaranty Trust Bank Ltd (GTBank) has filed for the Securities and Exchange Commission’s (SEC) approval for N500bn raise through a multi-currency institutional offering.

The holding company (HoldCo) said in a regulatory filing seen by THE WHISTLER on Friday that the proposed offering will commence by July 2024.

GTCO said the net proceeds of the proposed offering would be used for the recapitalisation of Guaranty Trust Bank Limited and the growth and expansion of the group’s businesses.

“Such planned growth and expansion will be effected through investments in technology infrastructure to fortify existing operations, the establishment of new subsidiaries and selective acquisitions of non-banking businesses,” GTCO said.

The move is driven by the recent directive by the Central Bank of Nigeria for banks to raise additional capital to serve $1tn economy.

In the new CBN capital requirement, international banks are expected to raise their capital base to N500bn, national banks, N200bn and regional banks N50bn.

According to the HoldCo, the offering is structured as an institutional offering targeted at eligible investors, a retail offering within Nigeria, and a private placing to persons reasonably believed to be qualified institutional buyers outside Nigeria.

GTCO, “The filing of the Red Herring Prospectus was undertaken with a concurrent filing of a preliminary universal shelf registration statement.

“The universal shelf registration will permit GTCOPLC to establish a multi-currency securities issuance programme (the 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 U.S.$750 million (or equivalent amount in Nigerian Naira) in the Nigerian/international capital markets during the validity period of the Programme.”

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