Sterling Holdings Targets ₦53bn Recapitalisation Through Public Offer

Sterling Financial Holdings Company Plc is gearing up to launch a public offer in the coming weeks, as part of efforts to meet the new capital requirements set by the Central Bank of Nigeria. The announcement was made alongside the release of the company’s half-year 2025 financial results.

Having previously raised ₦100 billion through a mix of private placements and rights issues, Sterling successfully recapitalised Alternative Bank (its ethical banking subsidiary) and reinforced Sterling Bank’s financial standing. However, the group still faces a ₦53 billion shortfall to fully meet the CBN’s mandated thresholds.

The capital initiative is part of a broader $400 million programme approved by shareholders during Sterling Holdco’s AGM on June 30, 2025. The regulatory directive from March 2024 requires international commercial banks to raise their capital to ₦500 billion, while national and regional banks must reach ₦200 billion and ₦50 billion respectively. Non-interest banks are expected to achieve ₦20 billion or ₦10 billion based on scope. The deadline for compliance is March 2026.

Sterling’s half-year performance was notably strong. Profit after tax rose by 157% to ₦41.78 billion, gross earnings jumped 39.7% to ₦212.61 billion, and total assets grew by 15.3% to ₦4.08 trillion. The group’s CEO, Yemi Odubiyi, attributed the results to strategic focus and a resilient business model, adding that the upcoming capital raise will strengthen Sterling’s capacity to invest in sectors such as renewable energy, healthcare, and community development.