Sterling Bank Moves to Raise $400m in Capital Through Debt and Equity Instruments to Strengthen Balance Sheet
Sterling Bank PLC announced a bold plan to collect up to $ 400 million in capital, because it is positioned for long -term growth, increased competitiveness and strategic partnerships on local and international markets.
The announcement, made after the 2nd annual general assembly of the bank which was practically maintained, follows the approval of shareholders for the great increase in capital, which will occur through debt instruments and equity offers.
In a press release signed by the secretary of the company Adeyooola Temple, the bank confirmed that it would create a shelf program, allowing it to issue financial instruments in slices or series over a specified period. This mechanism gives Sterling the flexibility to type the capital markets gradually if necessary, without launching a new issue each time.
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According to the press release, the bank is authorized to collect up to $ 400 million – or the Naira equivalent – through instruments such as bonds, commercial documents, sukuks, debentures, medium or short -term tickets, preference actions, ordinary shares and global deposit receipts. These instruments can be issued via public offers, private internships, rights issues or any other mechanism approved by the regulators concerned.
The prices and interest rates of the instruments will be set through the construction of books or similar evaluation methodologies, and the bank will obtain the necessary approvals of the regulators of the market, in particular the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and the relevant exchanges.
Expansion of the capital structure
To support this effort to mobilize capital, the Sterling Bank board of directors received an unconditional warrant to extend the share capital of the bank in a two -year window. This mandate, granted under articles 127 (1) and 149 (1) a) of the 2020 laws and allied issues – as amended by law 2022 on business facilitation – authorizes the board of directors to issue additional shares and revise the bank’s capital structure if necessary.
In the event of an issue of rights, any non -claimed shares will be redistributed to shareholders who have expressed their desire to acquire more equity, subject to the discretion of the council. The capital increase also allows Sterling Bank to list and admit new titles to negotiate on national and international platforms, notably Nigerian Exchange Limited (NGX), the FMDQ Securities Exchange Limited or other exchanges deemed appropriate.
In preparation for the expansion, the bank’s board of directors was authorized to modify the memorandum and the statutes to reflect the structure of the updated capital. In addition, the secretary of the company was responsible for registering all capital increases with the Corporate Affairs Committee (CAC) and to implement the regulatory documents necessary at the time of the publication of each tranche.
Sterling Bank will also hire legal and financial advisers to guide the process and ensure that all aspects of the increase meet the standards of compliance and governance.
Positioning for long -term growth
A spokesperson close to the bank’s management team described this decision as a strategic step towards the realization of long-term expansion and the improvement of the bank’s capacity to compete at local and global levels. The capital increase, said the spokesperson, should strengthen the liquidity of the bank, extend its ability to offer credit and allow more agile responses to growth opportunities in different sectors.
Sterling’s push occurs in the midst of a regulatory environment of tightening where Nigerian banks are under pressure to strengthen their capital base before a central bank deadline which obliges lenders to meet new capital requirements to support a more resilient banking sector.
Customer -focused perspective
The increase in capital follows another major decision by Sterling Bank earlier this year which drew public attention. In April, the bank announced that it would no longer charge for local online transfers made via its mobile application – a gesture that was initially encountered skepticism because it coincided with the day of the April fools.
Despite the calendar, the policy has proven to be real and has since been presented as an initiative focused on the customer aimed at improving the digital banking experience. Sterling has positioned himself as a pioneer in the bank focused on the client, by eliminating local transfer costs, establishing a new standard among Nigerian banks struggling with the digital transformation and the growing expectations of users.
These movements collectively reflect a bank recalibrating its operations for wider ambitions – combining stronger financial support, technological innovation and sharp concentration on customer service to ensure growth.
