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LAGOS/LONDON - Guaranty Trust Holding Company Plc (NGX:GTCO; LSE:GTCO) has injected ₦365.85 billion ($[value not specified]) into its wholly owned subsidiary, Guaranty Trust Bank Limited, according to a press release issued Friday.
The capital injection was executed through a rights issue of approximately 7 billion ordinary shares of fifty kobo each. Following this transaction, the banking unit’s share capital increased from ₦138.19 billion to ₦504.04 billion, enabling the bank to meet the Central Bank of Nigeria’s new minimum capital requirement for commercial banks with international authorization.
The capital infusion was funded through a two-phased equity capital raising program that received shareholder approval at the company’s 2024 Annual General Meeting and subsequent regulatory clearances.
Guaranty Trust Holding Company maintains 100% ownership of the bank following the transaction, with no directors holding any direct or indirect interest in the banking subsidiary.
The bank plans to deploy the additional capital primarily for branch network expansion, asset growth through loans and investment securities, strengthening its information technology infrastructure, and pursuing emerging opportunities in Nigeria and other markets where it operates.
The capital injection represents one of the significant banking recapitalization efforts in Nigeria following the central bank’s increased capital requirements for financial institutions operating in the country.
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