GTCO Considers N525bn Public Offer to Boost GTBank Capital Base

March 12, 2024

By Aduragbemi Omiyale

Guaranty Trust Holding Company (GTCO) Plc may approach the capital market to raise between N450 billion and N525 billion through a public offer, multiple reports suggest.

The funds from the public offer, which may likely be through a private placement, would be used to shore up the capital base of its banking subsidiary, GTBank Limited.

Recall that the Central Bank of Nigeria (CBN), through its Governor, Mr Yemi Cardoso, hinted that the minimum capital base of banks in the country would be raised because of the devaluation of the Naira for a long time, which may have eroded the current N25 billion.

According to reports, GTCO is expected to inform the investing public about this fresh capital raising through the Nigerian Exchange (NGX) Limited.

If this public offer is carried out, it will enable GTBank to execute large ticket transactions.

GTBank changed its business structure to a holding model to allow it to play in other sectors of the financial services sector. GTBank became the banking arm of the new company, GTCO.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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