CBN approves Sterling HoldCo’s N75bn additional capital

The Central Bank of Nigeria has approved the additional N75bn capital raised by Sterling Financial HoldCo to meet its new capital threshold.

According to a statement from the firm on Friday, this approval marked the final leg of the capital injection that was achieved through a private placement in September 2024.

Since the private placement, Sterling HoldCo launched a Rights Issue in October 2024, structured to provide existing shareholders with the exclusive opportunity to deepen their stakes in the company and share in its growth story.

The Rights Issue received significant interest and participation, highlighting the confidence and trust the company has cultivated among its shareholders over the years. Regulatory approval for the process is currently underway.

The HoldCo is also targeting a public offering in the new year which will see it meet the new capital requirement of the CBN.

Group Chief Executive Yemi Odubiyi described the capital injection and the approval as a validation of the company’s strategic direction and operational excellence.

“This milestone reflects the confidence of regulators and stakeholders in our vision to redefine financial services in Nigeria and beyond. Our enhanced capital base empowers us to pursue transformative opportunities, deliver sustainable value to all stakeholders, and drive impact across critical sectors of the Nigerian economy,” he stated.

Odubiyi emphasised the company’s evolution from its origins as a merchant bank to its current status as a diversified financial holdings company. Powered by technology and a flexible operational model, the company has consistently demonstrated its ability to navigate market difficulties and seize growth opportunities.

Reflecting on Sterling’s accomplishments, Odubiyi acknowledged the instrumental role of stakeholders, including regulators, investors, and customers saying, “We are grateful for the unwavering support and trust in our strategy, which has been pivotal to our journey. This recapitalisation strengthens our ability to unlock new opportunities, create value, and drive economic growth.

“As Sterling looks ahead, its focus remains firmly on innovation, sustainability, and value creation. With a fortified capital structure, the company is well-positioned to execute its ambitious growth plans, deepen its impact across critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry.

“This latest milestone marks a transformative chapter for Sterling Financial Holdings Company Plc as it continues to redefine the future of financial services in Nigeria and beyond.”

The capital boost follows a year marked by robust financial performance and significant strategic achievements for Sterling. As of the last week in December 2024, Sterling witnessed a 19 per cent surge in stock price, contributing to a remarkable three-year growth of 287.42 per cent.

In the first half of 2024, the company recorded a 51 per cent increase in profit before tax compared to the same period in 2023 and achieved a 20 per cent growth in total assets.

These results demonstrate Sterling’s resilience and ability to deliver superior outcomes despite the complexities of Nigeria’s economic landscape, marked by high inflation and currency volatility.