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Sterling Bank to Raise $400 Million to Boost Growth and Market Competitiveness

Sterling Bank Plc to raise $400 million through debt and equity instruments to expand its balance sheet, boost growth, and strengthen market competitiveness.
Sterling Bank $400 million

Sterling Bank Plc has unveiled plans to raise up to $400 million (or its equivalent in Naira and other currencies) through a combination of debt instruments and equity offerings, as part of its strategy to strengthen its balance sheet and fuel future growth.

9am News Nigeria reports that the decision follows the bank’s 2nd Annual General Meeting, which was held virtually and where shareholders gave their approval for the capital mobilisation plan.

In a corporate disclosure signed by Company Secretary Adeyoola Temple, Sterling Bank revealed that the funds would be raised through the creation of a Shelf Programme. This arrangement allows the bank to issue financial instruments in tranches or series over a defined period, providing flexibility in accessing the capital market.

“Sterling Bank has been authorized to raise up to $400 million or its equivalent in Naira or other currencies through instruments such as bonds, commercial papers, sukuks, debentures, medium- or short-term notes, preference shares, ordinary shares, and global depositary receipts,” the statement read.

The bank said the capital could be raised through various channels, including public offerings, private placements, rights issues, or any other approved methods. Pricing and interest rates will be determined through book building or other market-based valuation mechanisms, all subject to regulatory approvals.

To facilitate this funding, the Board of Directors has received an unconditional mandate, citing Sections 127(1) and 149(1)(a) of the Companies and Allied Matters Act 2020, as amended by the Business Facilitation Act 2022. This mandate allows the bank to expand its share capital within a two-year window.

In cases of rights issues, any unclaimed shares can be reallocated to other interested shareholders, subject to Board approval.

Potential Listings on Local and International Exchanges

Sterling Bank is also empowered to seek listing and trading admission of the new securities on Nigerian Exchange Limited (NGX), FMDQ Securities Exchange Limited, or any other domestic or international exchange as deemed appropriate.

The Board will amend the bank’s Memorandum and Articles of Association to reflect the expanded capital structure. The Company Secretary will register all changes with the Corporate Affairs Commission (CAC) and handle the necessary filings for each tranche of issuance.

The bank confirmed it will engage professional advisers to manage the legal, financial, and regulatory requirements for the capital raise, ensuring full compliance with financial authorities.

“This move positions Sterling Bank for long-term expansion, strategic partnerships, and enhanced competitiveness in both local and global markets,” said a spokesperson familiar with the bank’s executive plans.

In April, Sterling Bank announced it would no longer charge fees on local online transfers made through its mobile app — a move that sparked initial skepticism as it was unveiled on April 1, April Fools’ Day. However, the bank confirmed the policy as part of its commitment to customer-centric banking and market innovation.

The zero-transfer-fee initiative has been welcomed by customers as a bold step towards affordable, technology-driven financial services.

With the planned $400 million capital raise and recent customer-focused policies, Sterling Bank aims to position itself strongly for new growth opportunities, larger market share, and improved shareholder value.

Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.

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