GTCO to raise $750m through public offerings, private placements

Guaranty Trust Holding Company (GTCO) Plc plans to raise $750,000,000 by way of public offerings and private placements.

According to the company, the capital raise shall be by issuance of securities which consists of ordinary shares, preference shares, convertible or non-convertible notes, bonds or any other instruments in the Nigerian and international capital markets.

In a notice on Friday, GTCO said it will hold its third annual general meeting (AGM) on May 9 to vote on the decision to raise capital and other special business.

“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,” GTCO said.

“That the board be and is hereby authorised to seek the listing and admission to trading of securities issued pursuant to the foregoing resolution, on the official list of the Nigerian Exchange Limited, the London Stock Exchange plc or on such other stock exchange or exchanges or securities market or markets (as the case may be).

“That the issued share capital of the company be and is hereby increased from ₦14,715,589,612.00 (fourteen billion, seven hundred and fifteen million, five hundred and eighty-nine thousand, six hundred and twelve Naira only) divided into 29,431,179,224 (twenty-nine billion, four hundred and thirty-one million, one hundred and seventy-nine thousand, two hundred and twenty-four).

“Ordinary shares of ₦0.50 (fifty Kobo) each to ₦22,215,589,612.00 (twenty-two billion, two hundred and fifteen million, five hundred and eighty-nine thousand, six hundred and twelve Naira only) divided into 44,431,179,224 (forty-four billion, four hundred and thirty-one million, one hundred and seventy-nine thousand, two hundred and twenty-four).

“Ordinary shares of ₦0.50 (fifty Kobo) by the creation and addition of 15,000,000,000 (fifteen billion) ordinary shares of ₦0.50 (fifty Kobo) each ranking pari-passu with the existing ordinary shares of the company, (except that such additional ordinary shares shall not rank for the dividend recommended by the company in respect of the profit for the year ended 31 December, 2023).

“And that the Board (where it deems appropriate) be authorised to take the necessary steps to cancel any unallotted shares of the company or to further increase the share capital of the company to an amount sufficient to accommodate any transaction undertaken by the company to raise additional equity capital pursuant to the foregoing resolutions.”

GTCO said the shareholders would also vote on authorising the board to enter into and execute all such agreements, deeds, notices and other documents as may be necessary for the capital raise.

Meanwhile, on March 11, TheCable reported GTCO plans to raise between N450 billion and N525 billion through a public offer to support the capital base of its subsidiary, Guaranty Trust Bank (GTB).

CBN RAISES CAPITAL BASE OF COMMERCIAL BANKS

The decision to raise capital comes after the Central Bank of Nigeria (CBN), on March 28, announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks.

CBN adjusted the capital base for commercial banks with international licences to N500 billion, while national and regional financial institutions’ capital bases were pegged at N200 billion and N50 billion, respectively.

In its third quarter (Q3) 2023 financial statements, GTCO disclosed a capital base of N138.19 billion — indicating the company would require N361.81 billion to meet the half-a-trillion naira requirement.