![IMG_0431.jpeg](https://kelvinsblog9ja.com.ng/wp-content/uploads/2024/04/IMG_0431-678x381.jpeg)
LAGOS, April 12 (Reuters)** – Nigerian banking conglomerate Guaranty Trust Holding Plc (GTCO.LG) intends to seek shareholder approval next month to raise up to $750 million in capital, aligning with other banks in fortifying capital reserves to meet newly set targets by the Central Bank of Nigeria (CBN).
Thank you for reading this post, don’t forget to subscribe!
The CBN, in a recent announcement, outlined minimum capital requirements for banks aimed at fortifying the nation’s financial system and empowering lenders to contribute more substantially to economic expansion.
Guaranty Trust Holding Plc, the parent company of Guaranty Trust Bank, a prominent player in Nigeria’s banking landscape, disclosed its plan on Friday to request shareholder consent for the capital raise during a scheduled meeting on May 9. Access Holding (ACCESSCORP.LG) and FBN Holdings (FBNH.LG) have also unveiled capital raising initiatives in recent weeks.
With over 20 banks in Nigeria expected to bolster their capital within the next two years to meet the CBN’s stipulated standards, the regulator underscores the necessity for additional buffers to underpin Nigeria’s economic growth aspirations, especially following significant devaluations in the local currency since June last year.
Credit ratings agency Fitch anticipates a notable surge in equity issuance by Nigerian banks over the ensuing two years, alongside potential mergers, as some mid-sized or smaller lenders may encounter challenges in raising capital.
Guaranty Trust Holding Plc stated its intent to explore various avenues for raising the necessary funds, including issuing shares or bonds domestically or internationally.
Despite these strategic moves, shares of Guaranty Trust Holding experienced an 8.70% decline to 42 naira, underperforming the banking sector (.NGSEBNK10), which remained stable early on Friday.
Leave a Reply