Sterling Bank to Raise $400 Million to Strengthen Growth and Balance Sheet

Sterling Bank Plc has unveiled plans to raise up to $400 million in capital through various financing options, including debt instruments and equity offerings.

The decision follows the bank’s 2nd Annual General Meeting, held virtually, where shareholders approved the capital raise aimed at enhancing the bank’s growth capacity and strengthening its balance sheet.

In a corporate disclosure signed by the Company Secretary, Adeyoola Temple, the bank explained that the funds would be sourced through a Shelf Programme, enabling the issuance of financial instruments in tranches or series over a designated timeframe.

“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 noted.

The capital raise may be executed via public offerings, private placements, rights issues, or other approved methods. Pricing and interest rates will be determined using book-building or other valuation techniques, pending regulatory approval.

Expansion and Regulatory Backing

The bank’s Board of Directors received an 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) to increase the share capital within a two-year window.

In the case of a rights issue, unclaimed shares may be made available to other shareholders who have expressed interest in acquiring more equity.

Sterling Bank may seek listing and admission of the new securities on the Nigerian Exchange Limited (NGX), FMDQ Securities Exchange, or other suitable domestic or international platforms.

Legal Filings and Compliance

The Board is authorized to amend the bank’s Memorandum and Articles of Association to reflect the revised capital structure. The Company Secretary will oversee registration of the capital increase with the Corporate Affairs Commission and ensure necessary regulatory filings across each issuance phase.

Professional advisers will also be engaged to provide legal, financial, and compliance support to ensure the capital raise is executed in line with regulatory standards.

“This strategic move positions Sterling Bank for long-term growth, stronger partnerships, and enhanced competitiveness in domestic and international markets,” a spokesperson said.