Nigerian bank launches $246m share sale to bolster capital

Guaranty Trust Holding Co. (GTCO), Nigeria’s largest lender by market value, has announced plans to raise $246.2 million through a share sale.

This initiative marks the most substantial share sale by a Nigerian lender since the Central Bank of Nigeria (CBN) elevated the capital requirement threshold for the banking industry in March of this year.

According to a statement released on the Nigerian Stock Exchange’s website, GTCO will be offering 9 billion shares at a price of 44.50 naira each. The share sale, which commences on Monday and runs through August 12, aims to generate net proceeds of approximately 392.49 billion naira. The infusion of capital is intended to fortify the bank’s Nigerian unit, ensuring compliance with the new regulatory standards and enhancing its capacity to support economic growth through increased lending and investment activities.

This strategic financial maneuver underscores GTCO’s proactive approach to maintaining its leadership position in the Nigerian banking sector, adapting swiftly to regulatory changes, and reinforcing its capital structure. The move is expected to bolster investor confidence and sustain the bank’s trajectory of growth and stability in a competitive market environment.

Analysts and market watchers will be closely monitoring the uptake of this share sale, which not only reflects GTCO’s robust financial health but also its commitment to long-term sustainability and value creation for its shareholders. As the banking industry navigates the evolving landscape shaped by regulatory adjustments and economic challenges, GTCO’s capital raise exemplifies a forward-thinking strategy aimed at securing its future and reinforcing its pivotal role in Nigeria’s financial ecosystem.