GTCO Launches N400bn Public Offer to Boost GTBank's Capital

Guaranty Trust Holding Co.(GTCO) plans to raise N400 billion in a public offer to inject more capital into its Nigerian unit to meet new central bank rules.

The country’s biggest lender by market value will offer 9 billion shares at N44.50 each from Monday through Aug. 12, it said in a statement on the Nigerian Stock Exchange’s website.

After the deduction of the costs and expenses of the Offer, which is estimated at ₦8,010,000,000.00 (representing 2.0 per cent. of gross proceeds), the net proceeds of ₦392,490,000,000.00 will be utilised as detailed below:

Recapitalise of GTBank Nigeria with N370 billion representing 94.3% of net proceeds and an estimated completion period of 6 months, growth and expansion of the Group through acquisitions in pension-fund administration and asset-management businesses representing 5.7% of net proceeds, with an estimated completion period of 24 months.

In March, the Central Bank of Nigeria (CBN) increased the minimum capital requirements for lenders 10-fold as it sought to bolster the defenses of an industry facing a steep naira devaluation, high inflation and a weak economy.

Application for the Offer Shares can be made in physical format at all branches of GTBank Nigeria nationwide, all branches of the Receiving Banks nationwide, the Issuing Houses, the Stockbrokers to the Offer and the other Receiving Agents throughout the Offer Period.

Applications can also be made in electronic format through the Electronic Application Channel.

Segun Agbaje, Group CEO of GTCO says the bank is ready for transformational growth.

“We are not thinking of a couple of years or baby step growth, we are thinking of separating this bank and financial services group forever away from everybody,” Agbaje said.

“There is no Nigerian company that has ever made $1bn in profit, and we are going to be the first one.”