GTCO Plans Rights Issue, Private Placement Worth N525bn
Guaranty Trust Holdings Company (GTCO) Plc, the top tier-1 financial institution in Nigeria, has disclosed plans to raise N525 billion from the local debt capital market, according to stockbroking firms.
By means of rights issues and private placements, the financial services company would raise ₦525 billion in total prior to the regulator’s requirement. The Central Bank recently declared its intention to increase the capital base of banks with foreign licenses to N500 billion.
The recapitalization process for banks was given a two-year deadline by the central bank, which began on April 1. Meanwhile, GTCO Plc has also announced a close period and board meeting scheduled for April 26 for its first quarter of 2024 unaudited financial statement.
The Tier-1 lender’s unaudited result for 2023 has not been released by the Central Bank of Nigeria (CBN) 2 months after submission for regulatory consideration and approval .
According to information from the Nigerian Exchange, the market value of GTCO shrank to N1.412 trillion on Friday following reduced buying interest. Its share price had opened the week at N52. But as of Friday’s close, heavy selloffs had driven its share price down to N48.
Its negative performance dragged down the banking index. #GTCO Plans Rights Issue, Private Placement Worth N525bn Naira Suffers Big, CBN Goes Ballistic Against FX Whales
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