Hot SourceKayode Tokede
Guaranty Trust Holding Company Plc (GTCO), the parent company of Nigeria’s biggest lender by market value (GTBank), has announced plans to raise $100million new ordinary shares and proposed cancellation of a Global Depository Receipts (GDRs) listing on the London Stock Exchange (LSE).
The lender in a regulating filing also proposed admission of shares on the LSE’s main market for listed securities.
The $100 million Accelerated Bookbuild (ABB), is a capital raise being managed by Citibank, and what appears to be a significant move in the evolution of the bank’s listing journey on the LSE.
A GDP is a bank-issued certificate representing shares in a foreign company. It allows investors to trade the shares on international stock exchanges (like the LSE) without dealing with the complexities of cross-border settlement.
The group has, since 2007, maintained a GDR listing on the LSE and in its case, 1 GDR = 50 GTBank shares, providing global investors exposure to Nigerian banking equity.
According to regulating filing on the LSE, GTCO stated that it has given notice of its intention to cancel the listing of its existing GDRs on the certificates representing certain securities (depositary receipts) category of the Official List of the United Kingdom Financial Conduct Authority (FCA) and the admission to trading of GDRs on the LSE’s main market for listed securities.
The notice stated: “In place of the GDR listing, the Company intends for all of the ordinary shares of the Company (the Shares) to be admitted to the equity shares (international commercial companies secondary listing) category of the Official List of the FCA and to trading on the main market for listed securities of the LSE.”
Selling shares to institutional and qualified investors by the management of GTCO is part of an ongoing effort to recapitalise its main subsidiary, GTBank Plc.
That’s in line with a Central Bank of Nigeria (CBN) requirement that all lenders with international banking licenses raise their equity capital to a minimum of N500 billion or $327 million by March 2026.
The bank had previously sought shareholder approval to raise $750 million through an offering of ordinary or preference shares, convertible and non-convertible notes, bonds or any other instruments.
In January, it announced the completion of a N209 billion – or $136.6 million capital raise, which it said was the first phase of a funding exercise.
The holding company, which is already listed on the Lagos-based Nigerian Exchange Limited (NGX), will be the first lender from the West African nation to list on the LSE, bringing to three the number of Nigerian firms trading in London.
The Group Chief Executive Officer of GTCO, Mr. Segun Agbaje, in a statement said: “This Offering and transition to a full listing on the Official List of the FCA and to trading of the Company’s shares on the London Stock Exchange’s main market for listed securities represents a pivotal moment in GTCO’s growth story, reinforcing our position as a forward-thinking African Financial Services Institution.
“This move builds on our tradition of “many firsts” and innovation, as we continue to create exceptional value for our shareholders, customers, and broader stakeholders.”
He added: “Our consistent track record of strong performance, underpinned by disciplined execution and a relentless focus on customer excellence, gives us confidence as we embark on this next phase of growth.
“By enhancing our global visibility and access to capital, we are not just advancing our own ambitions but also unlocking transformative opportunities across the markets and customer segments we serve.”
GTCO is a leading sub-Saharan banking franchise with a longstanding track record of strong growth and returns.
GTCO has consistently demonstrated strong profitability (Q1 2025 Return on Average Equity (RoAE) of 36.3per cent and averaging an RoAE of 30.6 per cent and Return on Average Assets (RoAA) of 5.1per cent in the last decade to 2024FY, which is at a clear premium to Nigerian tier 1 banking peers).
“These profitability metrics compare favourably in a global banking context and are supported by strong operating efficiency (Q1 2025 cost-to-income ratio of 29per cent and averaging 37.9per cent in the last decade to 2024), as well as a robust capital position (39.3per cent CAR as at 2024).
“Well-positioned to deliver continued growth across multiple verticals in banking and non- banking business segments. Underpinned by economic tailwinds, the banking business of GTCO is poised to continue growth through scaling the retail and SME franchises, enhancing customer experience and technology, and increasing corporate lending in focus sectors.
“GTCO see a highly attractive banking opportunity in both Nigeria and its other markets of presence in West and East Africa, where continued economic growth, credit under penetration, and a demographic dividend support a distinct long-term structural growth thesis on which GTCO’s strong balance sheet and trusted brand is poised to capitalise.”
GTCO’s non-banking segments – in payments, asset management and pension fund administration – are serving as additional growth catalysts, whose contribution to the Group will continue to grow as they further scale and enhance operating leverage.
Diversified and well-funded balance sheet poised to benefit from monetary policy normalisation. GTCO has a strategically de-risked balance sheet with short-dated liquid assets that can be conveniently deployed to support margins.
The Company’s highly trusted brand and profile has enabled it to build a leading retail banking franchise, where it enjoys a structurally lower cost of funding attributable to its retail deposit mobilization capabilities (88.9per cent CASA deposits as at 1Q25).
Flowing from strong ratings from S&P and Fitch, respectively, GTCO benefits from strong foreign currency ratings within its peer group, which reflects stability and credibility in international markets. Most recently Fitch announced an upgrade to its credit rating for GTCO (B/Stable Outlook, April 2025) which it notes captures GTCO’s sizeable market share, revenue diversification, strong profitability and large capital and foreign-currency liquidity buffers.
Impressive asset quality metrics with strong buffers to withstand macro risks. The Group has maintained a healthy asset quality with a non-performing loan (NPL) ratio of 4.5per cent as at Q1 2025, improving from 5.2per cent as at 2024.
In addition, the loan portfolio is well-covered with a total coverage ratio of 146.9per cent as at 1Q25, improving from 138.7per cent as at 2024. GTCO operates within regulatory limits on credit exposure and does not rely on any regulatory forbearance in respect of credit concentration or single borrower exposures.
Strong capital position providing a solid foundation for future growth.
GTCO has the highest Tier 1 and Total Capital Ratios among key Nigerian peers, with 36per cent and 39.3per cent as at 2024FY, respectively. Furthermore, the Company’s strengthened equity base supports organic and inorganic growth as well as a higher single obligor limit that is conducive for larger credit ticket expansion.
Leveraging experienced management team and strong governance practices, GTCO has an experienced leadership team that has a proven and longstanding track record of delivery and execution to drive shareholder returns across business cycles.
