Guaranty Trust Holding Company Plc (GTCO) has received approvals from the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) to raise approximately US$13 million through a private placement of its ordinary shares, the bank announced on Tuesday. The private placement, one of the latest moves by Nigerian banks to boost capital and expand operations, is scheduled to close on December 31, 2025, subject to regulatory clearance.
Under the plan, GTCO will allot 125 million ordinary shares at ₦80 per share (US$0.10 per share), each with a nominal value of 50 kobo. The exercise is expected to inject ₦10 billion (US$13 million) into the company’s balance sheet, providing much-needed liquidity for growth and operational flexibility.
“The board has authorised the company to embark on a private placement to raise ₦10 billion (US$13 million) by the allotment of 125 million ordinary shares of 50 kobo each,” said Erhi Obebeduo, GTCO’s Group General Counsel, in a statement. He added that the placement is being undertaken under Section 7.1 of the Guidelines for Licensing and Regulation of Financial Holding Companies in Nigeria, ensuring compliance with both banking and capital market regulations.
GTCO, one of Nigeria’s leading financial institutions, has increasingly relied on private placements as a strategic tool to strengthen its capital base without resorting to full public offerings that could dilute existing shareholders’ stakes. In recent years, several Nigerian banks have followed similar paths, leveraging private placements to fund technology upgrades, expand retail and corporate banking services, and comply with rising regulatory capital requirements.
The proceeds from the placement will allow GTCO to maintain robust capital adequacy ratios, a key metric under CBN regulations, while enabling strategic investments in technology-driven banking solutions. The bank has emphasized digital banking as a priority, with increased focus on mobile platforms, e-wallets, and AI-enabled customer services areas that have driven growth in Nigeria’s competitive banking sector.
Industry analysts note that this capital raise comes at a pivotal moment for Nigeria’s banking sector, which is recovering from a period of economic volatility. Strengthened by regulatory reforms, improved macroeconomic stability, and increasing foreign exchange inflows, Nigerian banks are well-positioned to expand lending, improve profitability, and diversify revenue streams. GTCO’s private placement is expected to enhance its ability to compete with both local and regional banks, particularly in the West African market.
The exercise also demonstrates investor confidence in GTCO, reflecting the bank’s strong track record, prudent risk management, and commitment to innovation. Shareholders are likely to welcome the move, as it signals proactive measures to safeguard the company’s financial position while funding growth opportunities.
In addition, the private placement reinforces GTCO’s strategic plan to balance traditional banking operations with technology-driven services. By deploying the new capital, the bank aims to expand its reach across Nigeria, enhance customer experience, and support sectors driving national economic growth, including SMEs, trade finance, and digital payments.
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With the completion of this private placement, GTCO joins other top-tier Nigerian banks in leveraging alternative financing mechanisms to secure long-term stability, ensuring resilience in an increasingly complex financial landscape. The success of the placement could also set a precedent for similar initiatives in the banking sector in 2026, particularly for institutions looking to strengthen balance sheets without overly diluting shareholder equity.
