Sterling HoldCo to seek approval for fresh $400 million capital raise at AGM

Sterling Financial Holdings Company Plc will seek shareholder approval at its Annual General Meeting on June 9 to raise up to $400 million in fresh capital as it moves to strengthen its balance sheet and support growth.

This is according to a statement signed by the Company Secretary, Sunny Kanabe, and seen by Nairametrics.

The proposed capital raise is being presented without prejudice to existing capital-raising approvals obtained at the company’s AGM held on July 11, 2025, and may be executed in naira, dollars, or other currencies.

What they are saying 

According to the statement, shareholders will be asked to authorise the company to raise up to $400 million or its equivalent in naira or other currencies. The company said the capital may be raised in tranches or through several instruments, subject to regulatory approvals and terms determined by the board.

• “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.”  
• “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 statement added that the capital may be raised through a public offer, private placement, rights issue, or any other method at dates and on terms to be determined by the Board of Directors, subject to approvals from relevant regulators.

Get up to speed 

In July last year, Sterling Bank Plc announced plans to raise up to $400 million in capital through a range of financing options, including debt instruments and equity offerings.

• The move followed the bank’s 2nd Annual General Meeting, which was held virtually.
• Shareholders approved the capital raise to strengthen the institution’s growth capacity and balance sheet.
• In a corporate statement signed by Adeyoola Temple, the Company Secretary, Sterling Bank said the capital would be raised through the creation of a Shelf Programme.

The Shelf Programme was expected to allow the bank to issue financial instruments in tranches or series over a defined period.

The latest request is, therefore, being presented alongside existing capital-raising authorisations approved in 2025.

More insights

The fresh capital-raising plan is also coming alongside a proposed share consolidation and capital reduction, which will be voted on by shareholders at the AGM.

• Shareholders will vote on consolidating 68.5 billion ordinary shares of 50 kobo each into 6.85 billion shares at a ratio of 10 for 1.

The cancellation and extinguishment of 61.65 billion issued ordinary shares will reduce the issued share capital to N3.43 billion, comprising 6.85 billion ordinary shares of 50 kobo each, subject to court confirmation.

Sterling said any fractional entitlements from the consolidation will be rounded down to the nearest whole share or aggregated and sold in the market, with the proceeds distributed pro rata to the affected shareholders.

The company said the amount arising from the capital reduction will be credited to a share reconstruction reserve account, to be applied in accordance with applicable law and as management may determine.

If approved, the board will also be authorised to amend the company’s Memorandum and Articles of Association to reflect the new share capital structure.

What you should know 

Sterling Financial Holdings Company Plc recently released its audited group financial results for the full year ended December 31, 2025, showing a strong rise in earnings.

• The group’s profit before tax rose by 89.19% year-on-year to N86.78 billion, compared with N45.86 billion in FY2024.
• Gross earnings for 2025 stood at N486.80 billion, up from N337.19 billion in 2024, representing a 44.37% year-on-year increase.
• Profit after tax also increased by 74.74% to N76.33 billion, from N43.675 billion in the previous year.

The performance reflected broad-based earnings expansion despite persistent cost pressures and elevated loan impairments.

Sterling Financial Holdings Company Plc will seek shareholder approval at its Annual General Meeting on June 9 to raise up to $400 million in fresh capital as it moves to strengthen its balance sheet and support growth.

This is according to a statement signed by the Company Secretary, Sunny Kanabe, and seen by Nairametrics.

The proposed capital raise is being presented without prejudice to existing capital-raising approvals obtained at the company’s AGM held on July 11, 2025, and may be executed in naira, dollars, or other currencies.

What they are saying 

According to the statement, shareholders will be asked to authorise the company to raise up to $400 million or its equivalent in naira or other currencies. The company said the capital may be raised in tranches or through several instruments, subject to regulatory approvals and terms determined by the board.

• “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.”  
• “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 statement added that the capital may be raised through a public offer, private placement, rights issue, or any other method at dates and on terms to be determined by the Board of Directors, subject to approvals from relevant regulators.

Get up to speed 

In July last year, Sterling Bank Plc announced plans to raise up to $400 million in capital through a range of financing options, including debt instruments and equity offerings.

• The move followed the bank’s 2nd Annual General Meeting, which was held virtually.
• Shareholders approved the capital raise to strengthen the institution’s growth capacity and balance sheet.
• In a corporate statement signed by Adeyoola Temple, the Company Secretary, Sterling Bank said the capital would be raised through the creation of a Shelf Programme.

The Shelf Programme was expected to allow the bank to issue financial instruments in tranches or series over a defined period.

The latest request is, therefore, being presented alongside existing capital-raising authorisations approved in 2025.

More insights

The fresh capital-raising plan is also coming alongside a proposed share consolidation and capital reduction, which will be voted on by shareholders at the AGM.

• Shareholders will vote on consolidating 68.5 billion ordinary shares of 50 kobo each into 6.85 billion shares at a ratio of 10 for 1.

The cancellation and extinguishment of 61.65 billion issued ordinary shares will reduce the issued share capital to N3.43 billion, comprising 6.85 billion ordinary shares of 50 kobo each, subject to court confirmation.

Sterling said any fractional entitlements from the consolidation will be rounded down to the nearest whole share or aggregated and sold in the market, with the proceeds distributed pro rata to the affected shareholders.

The company said the amount arising from the capital reduction will be credited to a share reconstruction reserve account, to be applied in accordance with applicable law and as management may determine.

If approved, the board will also be authorised to amend the company’s Memorandum and Articles of Association to reflect the new share capital structure.

What you should know 

Sterling Financial Holdings Company Plc recently released its audited group financial results for the full year ended December 31, 2025, showing a strong rise in earnings.

• The group’s profit before tax rose by 89.19% year-on-year to N86.78 billion, compared with N45.86 billion in FY2024.
• Gross earnings for 2025 stood at N486.80 billion, up from N337.19 billion in 2024, representing a 44.37% year-on-year increase.
• Profit after tax also increased by 74.74% to N76.33 billion, from N43.675 billion in the previous year.

The performance reflected broad-based earnings expansion despite persistent cost pressures and elevated loan impairments.