“Guaranty Trust Holding Plc Plans $750 Million Capital Raise Amidst Regulatory Reforms”

Date:

LAGOS, April 12 – Nigerian banking conglomerate Guaranty Trust Holding Plc (GTCO.LG) intends to seek shareholder approval next month to raise up to $750 million in capital, aligning with other banks in fortifying capital reserves to meet newly set targets by the Central Bank of Nigeria (CBN).

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The CBN, in a recent announcement, outlined minimum capital requirements for banks aimed at fortifying the nation’s financial system and empowering lenders to contribute more substantially to economic expansion.

Guaranty Trust Holding Plc, the parent company of Guaranty Trust Bank, a prominent player in Nigeria’s banking landscape, disclosed its plan on Friday to request shareholder consent for the capital raise during a scheduled meeting on May 9. Access Holding (ACCESSCORP.LG) and FBN Holdings (FBNH.LG) have also unveiled capital raising initiatives in recent weeks.

With over 20 banks in Nigeria expected to bolster their capital within the next two years to meet the CBN’s stipulated standards, the regulator underscores the necessity for additional buffers to underpin Nigeria’s economic growth aspirations, especially following significant devaluations in the local currency since June last year.

Credit ratings agency Fitch anticipates a notable surge in equity issuance by Nigerian banks over the ensuing two years, alongside potential mergers, as some mid-sized or smaller lenders may encounter challenges in raising capital.

Guaranty Trust Holding Plc stated its intent to explore various avenues for raising the necessary funds, including issuing shares or bonds domestically or internationally.

Despite these strategic moves, shares of Guaranty Trust Holding experienced an 8.70% decline to 42 naira, underperforming the banking sector (.NGSEBNK10), which remained stable early on Friday.


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Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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