Nigeria: GTCO Aims to Raise N500bn Capital by July

GTCO Aims to Raise N500bn Capital by July
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Guaranty Trust Holding Company Plc (GTCO) has announced plans to raise approximately N500bn starting in July. This information was disclosed in a preliminary prospectus filed with the Securities and Exchange Commission.

GTCO intends to issue its ordinary shares of 50 kobo each to raise the funds, though the specific number of shares and the price range for the offering have not yet been determined.

According to the prospectus, the net proceeds from this offering will be allocated towards:

  1. Growth and Expansion: Investing in technology infrastructure to strengthen current operations, establishing new subsidiaries, and selectively acquiring non-banking businesses.
  2. Recapitalisation: Bolstering the capital base of Guaranty Trust Bank Limited (GTBank Nigeria).

The offering will be structured to appeal to both institutional and retail investors within Nigeria, while targeting international institutional investors through private placements.

Earlier this year, GTCO revealed plans to raise $750m in capital following new capital requirements set by the Central Bank of Nigeria. To achieve this, GTCO may issue shares or bonds both locally and internationally.

The filing of the preliminary prospectus coincides with a universal shelf registration statement, allowing GTCO to establish a multi-currency securities issuance program. This program will enable the issuance of various types of securities, or combinations thereof, in multiple offerings to raise up to $750m (or its Naira equivalent) in the Nigerian and international capital markets over the program’s validity period.

This upcoming offering will be the first issuance under the newly established program.

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