Sterling Financial Holdings Company PLC has achieved a significant milestone in its recapitalisation journey, securing the Central Bank of Nigeria's (CBN) approval for an additional ₦75 billion capital injection.
This development marks the final stage of the capital raise initiated through a private placement in September 2024.
Building on the success of the private placement, Sterling launched a Rights Issue in October 2024, offering existing shareholders an exclusive opportunity to increase their stakes in the company.
The Rights Issue garnered substantial interest, reflecting the trust and confidence Sterling has fostered among its stakeholders.
Regulatory approval for this phase is currently underway, further advancing the company’s ambitious recapitalisation agenda.
Looking ahead, the public eagerly anticipates Sterling’s Public Offer, set to commence early next year.
This initiative aims to broaden participation, allowing individual investors to be part of Sterling’s growth story and reinforcing its commitment to shared value creation.
Group Chief Executive, Yemi Odubiyi, hailed the CBN approval as a testament to Sterling’s strategic vision 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, and drive impact across critical sectors of the Nigerian economy,” he said.
Odubiyi also highlighted Sterling’s evolution from a merchant bank to a diversified financial holdings company.
He credited the company’s success to its agility, innovative use of technology, and ability to adapt to Nigeria’s dynamic economic landscape.
Reflecting on the company’s achievements, Odubiyi expressed gratitude to stakeholders, including regulators, investors, and customers.
“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,” he added.
Sterling’s capital boost follows a year of exceptional financial performance and strategic milestones.
As of the final week of December 2024, the company’s stock price surged by 19%, contributing to a three-year growth of 287.42%.
In the first half of the year, Sterling recorded a 51% increase in profit before tax compared to the same period in 2023 and achieved a 20% growth in total assets.
These results underscore Sterling’s resilience and capacity to deliver superior outcomes despite Nigeria’s challenging economic environment, characterized by high inflation and currency volatility.
As the company moves forward, its focus remains on innovation, sustainability, and value creation. With a strengthened capital structure, Sterling is poised to execute ambitious growth plans, expand its impact across critical sectors, and set new benchmarks in Nigeria’s financial services industry.
“This latest milestone represents a transformative chapter for Sterling Financial Holdings Company PLC.
“It is an affirmation of our commitment to redefining the future of financial services in Nigeria and beyond,” Odubiyi concluded.
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