Sterling Bank Plc has announced ambitious plans to raise up to $400 million in capital through a combination of debt instruments and equity offerings. This strategic move, approved by shareholders at the bank’s 2nd Annual General Meeting, aims to significantly strengthen its growth capacity and balance sheet.
In a corporate statement, Sterling Bank confirmed that the capital will be raised via a Shelf Programme, allowing the bank to issue various financial instruments in tranches over a defined period.
“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 detailed.
The issuance can be executed through various methods, including public offerings, private placements, or rights issues, with pricing and interest rates determined by market mechanisms and subject to regulatory approvals. To facilitate this, the Board of Directors received an unconditional mandate to increase the company’s share capital over a two-year window, in line with relevant sections of the Companies and Allied Matters Act 2020. In the event of a rights issue, any unclaimed shares may be offered to other interested shareholders.
Sterling Bank also plans to seek listing and trading admission for these new securities on the Nigerian Exchange Limited (NGX), FMDQ Securities Exchange Limited, or any other suitable domestic or international exchange.
The bank’s Board is authorized to amend its Memorandum and Articles of Association to reflect the new capital structure, with the Company Secretary responsible for all necessary registrations and filings. Sterling Bank will engage professional advisers to ensure compliance with all legal, financial, and regulatory requirements.
“This move positions Sterling Bank for long-term expansion, strategic partnerships, and increased competitiveness in both local and international markets,” a bank spokesperson stated.
This capital raise follows Sterling Bank’s recent customer-centric policy change in April, where it announced the elimination of fees on all local online transfers via its mobile app. This innovative policy, initially met with skepticism due to its April Fools’ Day announcement, positions Sterling Bank as a pioneer in prioritizing customer convenience in digital banking.
