By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-Shareholders of Sterling Bank Plc is scheduled to meet on November 11, 2014 to deliberate and approve plans by the lender to raise 19.8 billion naira ($200 million) via a special or private placement to strategic investors, the TheAnalyst said.

According to the report, the raising of additional capital has been one of the key issues that currently take the centre stage within the banking industry as the Central Bank of Nigeria (CBN) circular requesting all banks to increase their Tier 1 capital has continued to compel banks to look at various ways of capital raising to shore up their capital up to regulatory required level. 

TheAnalyst said while some are looking at the bonds market others preferred to look at the equities market by raising funds via rights issue while some are looking at special or private placements to strategic investors.

Recently, United Bank for Africa Plc announced its plans to raise fresh capital via rights issue in order to shore up its Tier 1 capital while Access Bank Plc also earlier announced to the market its plans to raise N68 billon by way of rights issue for similar reason. Both are subject to shareholders and regulatory approval.