Recapitalization: GTCO to raise $750m through rights issues

Guaranty Trust Holding Company Plc has unveiled plans to raise $750 million through a rights issue.

The company disclosed this in a notice of the Annual General Meeting filed by the Group General Counsel/ Company Secretary, Erhi Obebeduo, and sent to the Nigerian Exchange Group (NGX) Friday.

The GTCO plans to raise the additional capital of up to $750 million through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments in the Nigerian and/or international capital markets. 

READ ALSO: GTCO profit rises by 184.5%, hits N609.3bn for 2023

It read: “That the Company be and is hereby authorised to raise additional capital of up to US$750,000,000.00 (seven hundred and fifty Million United States Dollars only), (or its equivalent in Nigerian Naira), through the issuance of securities comprising ordinary shares, preference shares, convertible and/or non-convertible notes, bonds or any other instruments in the Nigerian and/or international capital markets, either as a standalone issue(s) or by the establishment of capital raising programme(s), whether by way of public offerings, private placements, rights issues and/or other transaction modes, at price(s), coupon or interest rates determined through book building or any other acceptable valuation method or combination of methods, in such tranches, series or proportions, within such maturity periods and at such dates and upon such terms and conditions as may be determined by the board of directors of the Company (the Board), subject to obtaining the requisite approvals of the relevant regulatory authorities.”

 

 

The Central Bank of Nigeria (CBN) had last month announced a 10-fold increase in minimum capital requirements for banks, nearly two decades after the last exercise.

The apex bank raised the minimum capital requirement to N500 billion for those with international authorization, N200 billion for commercial banks with national authorization, and N50 billion for those with regional bases.

Eight banks with international operations, including  Fidelity Bank, FCMB, and Union Bank, are expected to raise their capital requirements of N500 billion.

 

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