Guaranty Trust Bank Limited (GTBank) has successfully met the new capital requirement set by the Central Bank of Nigeria (CBN) following a massive N365.85 billion capital injection from its parent company, Guaranty Trust Holding Company Plc (GTCO).
The move comes after the CBN, earlier this year, directed all commercial banks to raise new capital. For banks like GTBank with an international authorisation, the minimum capital requirement was significantly increased.
The regulator’s goal was to strengthen the Nigerian banking sector against economic shocks and boost its capacity to support larger businesses and economic growth.
GTCO provided the funds by taking up a rights issue of 6.99 billion new shares in GTBank. A statement confirmed that following this transaction, GTCO’s ownership of the bank remains at 100%.
The capital injection is a key part of GTBank’s strategy to comply with the new rules. A company said in a circular: “This capital injection ensures the Bank’s compliance with the new minimum capital requirement for commercial banks with international authorisation.”
They confirmed the funds were raised through a programme approved by GTCO’s shareholders.
With this infusion, GTBank’s share capital has surged from N138.1 billion to over N504 billion, putting it in a strong position. The bank has stated the new capital will be used for expansion, increasing its loan book, and fortifying its technology infrastructure to seize new opportunities in the market.
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