(Ecofin Agency) - Guaranty Trust Holding, a Nigerian banking group, announced yesterday that it plans to raise $246.2 million through a share sale to meet new minimum capital requirements set by the Central Bank of Nigeria. The announcement was made via a notice on the Lagos Stock Exchange website.

The capital increase will be conducted through the sale of 9 billion new shares at 44.50 naira each, with the offer open until August 12, 2024.

A substantial 94% of the funds raised will be used to recapitalize Guaranty Trust Bank (GTBank), the Nigerian subsidiary operating in nine other African countries, including Côte d'Ivoire, Ghana, Gambia, and Rwanda. The remaining funds will support the bank's expansion through acquisitions in pension fund management and asset management sectors.

The Central Bank of Nigeria introduced these new minimum capital requirements on March 28 to bolster banks' capacity to support economic growth following significant naira devaluations since June 2023. Over the next two years, more than 20 Nigerian banks will need to raise additional capital to meet the new thresholds set by the central bank.