Guaranty Trust Bank Limited has gotten a ₦365.85 billion capital injection from Guaranty Trust Holding Company Plc (NGX: GTCO), meeting the new minimum capital requirement for commercial banks with international authorisation stipulated by the Central Bank of Nigeria.
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The investment by GTCO into its wholly owned subsidiary, Guaranty Trust Bank Limited, came through the issue and allotment of 6,994,050,290 ordinary share of fifty kobo each made by the Bank to the Company by way of a rights issue.
Guaranty Trust Holding Company Plc announced the increased investment in its subsidiary in a press release signed by Erhi Obebeduo, Group General Counsel/Company Secretary, and released on the Nigerian Exchange on Friday.
Following the capital injection, GTCO continues to hold 100% of the entire issued and paid-up share capital of the Bank.
The capital injection was funded by the two-phased equity capital raising programme approved by the Company’s shareholders at its 2024 Annual General Meeting and subsequently executed in line with the approvals obtained from the relevant regulatory authorities.
Through this capital injection, the share capital of Guaranty Trust Bank Limited has been increased from ₦138.18 billion to ₦504.03 billion and ensures the Bank’s compliance with the new minimum capital requirement.
The additional equity capital will be deployed by GTBank primarily for branch network expansion and asset growth (loans/advances and investment securities portfolio), fortification of its information technology infrastructure and to leverage emerging opportunities in Nigeria and the operating environments where it maintains banking presence.
The Central Bank of Nigeria bank had in March 2024 announced an upward review of the minimum capital requirements for commercial, merchant and non-interest banks in Nigeria.
All existing banks are required to meet the minimum capital requirement within a period of 24 months, from April 1, 2024, and terminating on March 31, 2026.
For commercial banks with international authorisation, the minimum capital is now ₦500 billion. Commercial banks with national authorisation will require a minimum capital of ₦200 billion, while those with regional authorization will require ₦50 billion.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
