Sterling Bank Plc is set to raise up to $400 million in capital through a mix of debt and equity financing options, a move aimed at strengthening its growth trajectory and reinforcing its balance sheet.
This decision follows the bank’s recently held 2nd Annual General Meeting, where shareholders gave their approval for the capital raise. According to a corporate disclosure signed by Company Secretary Adeyoola Temple, the bank will create a Shelf Programme, enabling it to issue financial instruments in tranches or series over a specified period.
The bank is authorised to raise the funds or the Naira equivalent, through instruments such as bonds, commercial papers, sukuks, debentures, preference shares, ordinary shares, medium- or short-term notes, and global depositary receipts. These may be issued through public offerings, private placements, rights issues, or other approved mechanisms. Pricing will be determined using book building or other valuation methods, and all issuances are subject to regulatory approvals.
Sterling Bank’s Board of Directors has secured a broad, unconditional mandate under Sections 127(1) and 149(1)(a) of the Companies and Allied Matters Act 2020, as amended by the Business Facilitation Act 2022, allowing it to increase the company’s share capital over the next two years.
In the event of a rights issue, any unclaimed shares will be made available to interested shareholders at the Board’s discretion.
The bank also intends to list the new securities on the Nigerian Exchange Limited (NGX), FMDQ Securities Exchange, or other relevant local or international exchanges.
To align with the upcoming capital changes, the Board has been authorised to amend the bank’s Memorandum and Articles of Association, with the Company Secretary mandated to register the capital increase with the Corporate Affairs Commission (CAC) and oversee necessary filings for each tranche.
Sterling Bank plans to engage professional advisers to manage legal, financial, and compliance processes and secure all required regulatory clearances.
According to a spokesperson close to the bank’s leadership, this move lays the foundation for Sterling Bank to scale operations, attract strategic partnerships, and improve its competitiveness in both domestic and global markets.
Earlier this year, in April, Sterling Bank introduced a policy eliminating transfer fees for all local online transactions made through its mobile app. Although the policy was announced on April 1, prompting initial skepticism over whether it was an April Fools’ Day prank, the bank has since maintained the zero-transfer-fee model, positioning itself as a customer-first financial institution.
