Sterling Bank Plc has announced a bold plan to raise up to $400 million in capital as it positions itself for long-term growth, increased competitiveness, and strategic partnerships across local and international markets.
The announcement, made after the bank’s 2nd Annual General Meeting held virtually, follows shareholder approval for the wide-ranging capital raise, which will occur through both debt instruments and equity offerings.
In a statement signed by Company Secretary Adeyoola Temple, the bank confirmed that it will create a Shelf Programme, allowing it to issue financial instruments in tranches or series over a specified period. This mechanism gives Sterling the flexibility to tap the capital markets incrementally as needed, without launching a new issuance each time.
According to the statement, the bank is authorized to raise up to $400 million—or the naira equivalent—through instruments such as bonds, commercial papers, sukuks, debentures, medium- or short-term notes, preference shares, ordinary shares, and global depositary receipts. These instruments may be issued via public offerings, private placements, rights issues, or any other mechanisms approved by relevant regulators.
Pricing and interest rates for the instruments will be set through book building or similar valuation methodologies, and the bank will secure necessary approvals from market regulators including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and relevant exchanges.
Expanding Capital Structure
To support this capital mobilization effort, Sterling Bank’s Board of Directors has received an unconditional mandate to expand the bank’s share capital within a two-year window. This mandate, granted under Sections 127(1) and 149(1)(a) of the Companies and Allied Matters Act 2020—as amended by the Business Facilitation Act 2022—authorizes the board to issue additional shares and revise the bank’s capital structure as necessary.
In case of a rights issue, any unclaimed shares will be redistributed to shareholders who have expressed a willingness to acquire more equity, subject to the board’s discretion. The capital raise also allows Sterling Bank to list and admit the new securities for trading on domestic and international platforms, including the Nigerian Exchange Limited (NGX), FMDQ Securities Exchange Limited, or other exchanges deemed suitable.
In preparation for the expansion, the bank’s Board has been authorized to amend the Memorandum and Articles of Association to reflect the updated capital structure. Additionally, the Company Secretary has been tasked with registering all capital increases with the Corporate Affairs Commission (CAC) and implementing the necessary regulatory filings as each tranche is issued.
Sterling Bank will also hire legal and financial advisers to guide the process and ensure that all aspects of the raise meet compliance and governance standards.
Positioning for Long-Term Growth
A spokesperson close to the bank’s executive team described the move as a strategic step toward achieving long-term expansion and improving the bank’s ability to compete at both the local and global levels. The capital raise, the spokesperson said, is expected to bolster the bank’s liquidity, expand its capacity to offer credit, and enable more agile responses to growth opportunities across different sectors.
Sterling’s push comes amid a tightening regulatory environment where Nigerian banks are under pressure to strengthen their capital base ahead of a central bank deadline that mandates lenders to meet new capital requirements to support a more resilient banking sector.
A Customer-Centric Outlook
The capital raise follows another major move by Sterling Bank earlier this year that drew public attention. In April, the bank announced it would no longer charge fees on local online transfers conducted through its mobile app—a gesture that was initially met with skepticism as it coincided with April Fools’ Day.
Despite the timing, the policy proved real and has since been touted as a customer-first initiative aimed at improving the digital banking experience. Sterling has positioned itself as a pioneer in customer-centric banking, by eliminating local transfer fees, setting a new standard among Nigerian banks grappling with digital transformation and rising user expectations.
These moves collectively reflect a bank recalibrating its operations for broader ambitions—combining stronger financial backing, technological innovation, and a sharpened focus on customer service to ensure growth.