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The Central Bank of Nigeria (CBN) has granted approval for the N75 billion additional capital raised by Sterling Financial Holdings Company (Sterling HoldCo), positioning the firm to meet the regulatory body’s updated capital threshold.
In a statement released on Friday, Sterling HoldCo disclosed that this approval concludes the final phase of its capital enhancement initiative, which began with a private placement in September 2024.
Following the private placement, the company initiated a Rights Issue in October 2024, providing existing shareholders an exclusive opportunity to deepen their investment and align with Sterling’s growth trajectory. The Rights Issue attracted substantial interest, reflecting strong shareholder confidence in the company. Regulatory approval for this initiative is currently underway.
Looking ahead, Sterling HoldCo plans to launch a public offering in 2025, aimed at further bolstering its capital base to meet CBN’s requirements.
Group Chief Executive Yemi Odubiyi hailed the capital injection and regulatory approval as a testament to Sterling’s strategic vision and operational strength. “This milestone reflects the confidence of regulators and stakeholders in our mission to redefine financial services in Nigeria and beyond,” Odubiyi remarked.
He added, “Our enhanced capital base equips us to pursue transformative opportunities, deliver sustainable value to stakeholders, and make significant contributions to critical sectors of the Nigerian economy.”
Odubiyi highlighted Sterling’s evolution from its origins as a merchant bank to a diversified financial holdings company. Anchored by technology and an adaptive operational framework, Sterling has demonstrated resilience in overcoming market challenges while seizing opportunities for growth.
He expressed gratitude to regulators, investors, and customers, saying, “Their unwavering support and trust in our strategy have been instrumental to our progress. This recapitalisation reinforces our ability to unlock new opportunities, create value, and drive economic development.”
As Sterling charts its future, its priorities remain centered on innovation, sustainability, and stakeholder value creation. With a strengthened capital foundation, the company is poised to execute its ambitious growth strategy, deepen its impact across key sectors, and set new benchmarks for excellence in Nigeria’s financial services industry.
The capital boost marks a significant chapter in Sterling HoldCo’s journey, following a year of strong financial performance and strategic milestones. By the last week of December 2024, Sterling’s stock price surged by 19%, capping a remarkable three-year growth of 287.42%.
In the first half of 2024, the company achieved a 51% increase in profit before tax compared to the same period in 2023, alongside a 20% growth in total assets. These achievements underscore Sterling’s ability to deliver superior results despite Nigeria’s economic challenges, including high inflation and currency fluctuations.
Sterling Financial Holdings Company Plc continues to position itself as a transformative force in Nigeria’s financial sector, paving the way for a sustainable and innovative future.
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