Guaranty Trust Holding Company Plc has received approvals from the Central Bank of Nigeria and the Securities and Exchange Commission to raise N10 billion through a private placement of its ordinary shares. The process is part of the company’s capital-raising programme aimed at strengthening its financial holding structure and meeting regulatory requirements. The offer is expected to close on December 31.
In a statement on Tuesday, the company said the approval was subject to the fulfilment of applicable conditions precedent and other regulatory requirements.
GTCO recalled that it had earlier announced on August 29 that its banking subsidiary, Guaranty Trust Bank Ltd., had satisfied and exceeded the new CBN minimum capital requirement for commercial banks with international authorisation, having increased its capital to N504 billion.
“This private placement in the sum of N10 billion is therefore only being raised pursuant to Section 7.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies in Nigeria regarding the computation of the capital of FHCs,” the statement said.
It further stated that “the proposed private placement was being undertaken pursuant to the company’s shareholders’ resolution passed at its Annual General Meeting held on 9 May 2024.”
“The resolution authorised the board to establish a capital raising programme of up to $750 million or its equivalent through the issuance of ordinary shares, preference shares, convertible and/or non-convertible bonds or any other instruments,” it added.
GTCO noted that the capital could be raised through various means including public offering, private placement, rights issue, book-building process, or any other combination of methods in tranches and at dates determined by the board.
The statement further explained that “as a result of this, the Board has authorised the Company to embark on a private placement to raise N10 billion by the allotment of 125 million ordinary shares of 50k each.”
“The company has entered into an arrangement, in connection with a best efforts private placement for gross proceeds of up to N10 billion from the sale of up to 125 million of the ordinary shares of the company at N80 per share,” said GTCO.
The offering, which is set to close on December 31, remains subject to all necessary approvals.
