Guaranty Trust Holding Company Plc has obtained the approvals of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), to undertake a private placement of its ordinary shares.
The bank, in a statement on Tuesday, said that this was subject to the fulfilment of the applicable conditions precedent and regulatory requirements.
GTCO recalled that it had earlier announced, on Aug. 29, that its banking subsidiary, Guaranty Trust Bank Ltd., had satisfied and surpassed the new CBN minimum capital requirement for commercial banks with international authorisation, having already increased its capital to N504 billion.
“This private placement in the sum of N10 billion is therefore only being raised pursuant to Section 7.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies (FHCs) in Nigeria regarding the computation of the capital of FHCs.
“The proposed private placement was being undertaken pursuant to the company’s shareholders’ resolution passed at its Annual General Meeting held on 9 May 2024.
“The resolution authorised the board to establish a capital raising programme of up to $750 million or its equivalent through the issuance of ordinary shares, preference shares, convertible and/or non-convertible bonds or any other instruments,” it added.
This could be by way of a public offering, private placement, rights issue, book building process or any other method or combination of methods in such tranches, and at such dates and upon terms and conditions as may be determined by the board.
The statement further reads that, “As a result of this, the Board has authorised the Company to embark on a private placement to raise N10 billion by the allotment of 125 million ordinary shares of 50k each.
“The Company has entered into an arrangement, in connection with a best efforts private placement for gross proceeds of up to N10 billion from the sale of up to 125 million of the ordinary shares of the company at N80 per share.”
The Offering is scheduled to close on Dec. 31, and subject to certain conditions, including, but not limited to, receipt of all necessary approvals.
