Sterling Financial Holdings Company Plc is preparing to seek shareholders’ approval to raise fresh capital worth up to 400 million dollars at its upcoming Annual General Meeting scheduled for June 9. The move is part of the company’s broader strategy to strengthen its financial position and support future expansion plans.
According to details released by the company, the proposed capital raise could be carried out in naira or other foreign currencies, depending on market conditions and approvals from regulators. The company explained that the funds may be sourced in phases and through different financial instruments.
The statement signed by the Company Secretary, Sunny Kanabe, noted that shareholders would be asked to approve the plan at the AGM. It stated, “Company be and is hereby authorized to raise up to US$400,000,000 (Four Hundred Million United States Dollars) or its equivalent in Naira or other currencies.” Sterling HoldCo also disclosed that the fundraising may involve several methods, including bonds, preference shares, ordinary shares, global depositary receipts, or a combination of funding options from both local and international capital markets.
Part of the statement further explained, “The capital may be raised in tranches or otherwise through the issuance of debt instruments, including, but not limited to, bonds that may be convertible or non convertible, preference shares, ordinary shares, global depositary receipts, or a combination thereof, in the Nigerian and/or international capital markets.”
The company said the fundraising could happen through public offers, private placements, rights issues, or any other process the board considers appropriate. The final structure, pricing, and timing would depend on market realities and approvals from relevant authorities. This latest move follows earlier plans announced by Sterling Bank Plc in 2025 to raise a similar amount through equity and debt instruments. At the time, shareholders approved the initiative as part of efforts to improve the bank’s balance sheet and increase its growth capacity.
The company had previously introduced a Shelf Programme, which allows financial institutions to issue securities gradually over a set period instead of raising all funds at once. This approach gives firms flexibility to access funding when market conditions become favourable. Industry observers believe the proposed capital raise aligns with ongoing efforts by Nigerian financial institutions to strengthen their capital base amid regulatory changes and growing competition within the banking sector.
Additional capital could help Sterling HoldCo expand operations, improve lending capacity, and support long term business growth.
