Guaranty Trust Holding Company (GTHC), the conglomerate that oversees Nigeria's major GTBank, is preparing to submit a significant capital injection plan to its shareholders. This move follows the Central Bank's decision to increase capital requirements for the nation's top financial institutions by a factor of 10.
GTBank's capital augmentation plan includes the issuing of various financial instruments such as ordinary shares, preference shares, convertible notes, and bonds. This strategy is intended to strengthen the banks' resilience to both foreign and domestic economic shocks, adding to the overall strength of Nigeria's banking industry.
Furthermore, this financial support is consistent with President Tinubu's ambitious aim of propelling Nigeria's economy to the trillion-dollar milestone by 2030. However, the imminent capital increase is expected to result in a significant reduction of ownership for existing shareholders. Following the announcement of a forthcoming annual general meeting, GTHC's stock value fell 4%, finishing at N41.40.
GTBank's capital augmentation plan includes the issuing of various financial instruments such as ordinary shares, preference shares, convertible notes, and bonds. This strategy is intended to strengthen the banks' resilience to both foreign and domestic economic shocks, adding to the overall strength of Nigeria's banking industry.
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