Sterling Financial Holdings Company PLC has achieved another milestone in its recapitalization journey, with the Central Bank of Nigeria (CBN) granting final approval for an additional ₦75 billion capital raise. This approval concludes the capital injection initiated through a private placement in September 2024.
Building on the momentum of the private placement, Sterling launched a Rights Issue in October 2024, offering existing shareholders an exclusive opportunity to deepen their stakes in the company. The Rights Issue, which garnered significant interest, underscores the trust and confidence Sterling has built among its shareholders. Regulatory approval for this phase is currently underway, advancing the recapitalization process.
Looking ahead, the public eagerly anticipates Sterling’s Public Offer, expected to launch early next year. This initiative will enable broader participation from the public, further strengthening the company’s commitment to shared value creation.
Group Chief Executive, Yemi Odubiyi described the capital injection as a testament to the institution’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 to all stakeholders, and drive impact across critical sectors of the Nigerian economy,” he stated.
Odubiyi highlighted the company’s remarkable evolution from its roots as a merchant bank to its current status as a diversified financial holdings company. Leveraging cutting-edge technology and a flexible operational model, Sterling has consistently navigated market challenges while seizing growth opportunities.
He also expressed gratitude to stakeholders, including regulators, investors, and customers, for their unwavering support. “This recapitalization strengthens our ability to unlock new opportunities, create value, and drive economic growth,” Odubiyi added.
Sterling Financial Holdings Company PLC’s capital boost follows a year of robust financial performance. As of December 2024, the company recorded a 19% surge in stock price, capping a three-year growth of 287.42%. In the first half of 2024, the financial institution reported a 51% increase in profit before tax compared to the same period in 2023, alongside a 20% growth in total assets.
These achievements highlight Sterling’s resilience and capacity to deliver superior outcomes despite Nigeria’s challenging economic landscape, characterized by high inflation and currency volatility.
With a fortified capital structure, Sterling is poised to execute ambitious growth plans, deepen its impact across critical sectors, and set new benchmarks for excellence in Nigeria’s financial services industry.
For more updates on Sterling’s transformative journey, visit fasnewsng.com.
By Augustine Idoje
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