September 19, 2024/Sterling Bank Plc
Culled: Proshare.co
In a recent release, Sterling Financial Holdings Company Plc informed investors that it would be embarking on the bank’s recapitalisation in compliance with the Central Bank of Nigeria (CBN) requirements for a national license. This includes raising US$50m in fresh capital through a single transaction. The capital raise of approximately N75bn was achieved through a private placement from a consortium comprising domestic investors and ultra-high-net-worth groups and is in the final stages of obtaining regulatory approval.
Speaking at the signing ceremony for the placement, the Group Chief Executive Officer of Sterling Financial Holdings Company, Yemi Odubiyi, said that the capital raise demonstrates the market’s confidence in the bank’s vision and potential.
Odubiyi said, “The investors’ decision to entrust Sterling HoldCo with their hard-earned capital is built on our ability to challenge the norm in Nigeria’s financial services sector. Our investors recognise that beyond the profits declared and dividend payouts, we are an enterprise that has consistently demonstrated capacity for innovation, creating and leveraging new opportunities within and outside the industry to deliver value to all our stakeholders.”
He continued, “From our modest beginnings as a merchant bank, we have evolved into a dynamic enterprise with a proven track record that extends well beyond conventional banking. Now powered by an embedded technology stack that is flexible to the market’s unique demands, we are more than confident in capturing major growth opportunities in Nigeria and beyond.”
The Group CEO concluded, “Our vision, performance, and journey continue to be rewarded with the highest form of investor confidence – more capital. This infusion of funds reflects our investors’ trust in us and is a powerful endorsement of our strategy and future potential. With it, we reaffirm our commitment to driving social, sector, and economic growth beyond banking. By investing in and incubating new subsidiaries, we will prioritise value creation that stimulates and sustains growth for both the enterprise and the nation’s economy. Our investment strategy is anchored in sustainable practices
to deliver long-term value for society and consistent returns for investors.”
Last year, Sterling Holdco transitioned from a commercial bank to a full-fledged financial holdings company with two subsidiary banks: the specialised financing arm, The Alternative Bank, and the conventional commercial bank, Sterling Bank. With several key businesses in the pipeline, the holding company is strategically positioned to seize opportunities beyond those available to its peers.
Sterling Holdco’s performance has seen a steady rise, with a 51% increase in its profit before tax in H1 2024 compared to 2023 and a 20% growth in the company’s total assets in the first half of 2024.
Sterling is renowned for its HEART of Sterling strategy, which focuses on major investments in the Nigerian economy’s healthcare, education, agriculture, renewable energy, and transportation sectors. It also has a bold brand voice and enviable talent management practices.
