August 3, 2025
Business

Sterling Bank Plans $400 Million Capital Raise to Bolster Growth and Financial Position

Sterling Bank Plc has announced plans to raise $400 million through a combination of debt and equity instruments as part of efforts to enhance its balance sheet and expand its growth capacity.

The bank disclosed this strategic move in a corporate notice issued to the Nigerian Exchange Limited, noting that the capital injection will support its medium- to long-term business objectives, including deepening financial inclusion and scaling innovative banking solutions.

According to the statement, the fundraising exercise will involve a mix of methods, including public offerings, private placements, and rights issues. The decision to pursue this approach, the bank said, stems from a proactive response to emerging market opportunities and regulatory expectations in the evolving financial services landscape.

Sterling Bank emphasized that the capital raise will not only improve its capital adequacy ratio but also provide flexibility to invest in new technologies, support lending activities, and meet customer demands across various sectors.

The bank’s Group Managing Director, Abubakar Suleiman, reaffirmed Sterling’s commitment to sustainable banking and long-term value creation for shareholders and stakeholders alike. He described the initiative as a timely response to the dynamic macroeconomic environment and a step toward achieving greater resilience.

The planned capital raise is subject to the approval of shareholders, relevant regulatory authorities, and market conditions. Analysts have described the move as a positive indicator of investor confidence in the bank’s governance and expansion strategy.

Sterling Bank has recently shifted focus toward becoming a full-fledged financial services provider, with significant investment in health, education, agriculture, renewable energy, and transportation – key sectors of Nigeria’s real economy.

Sterling Bank Plans $400 Million Capital Raise to Bolster Growth and Financial Position

Sterling Bank Plc has announced plans to raise $400 million through a combination of debt and equity instruments as part of efforts to enhance its balance sheet and expand its growth capacity.

The bank disclosed this strategic move in a corporate notice issued to the Nigerian Exchange Limited, noting that the capital injection will support its medium- to long-term business objectives, including deepening financial inclusion and scaling innovative banking solutions.

According to the statement, the fundraising exercise will involve a mix of methods, including public offerings, private placements, and rights issues. The decision to pursue this approach, the bank said, stems from a proactive response to emerging market opportunities and regulatory expectations in the evolving financial services landscape.

Sterling Bank emphasized that the capital raise will not only improve its capital adequacy ratio but also provide flexibility to invest in new technologies, support lending activities, and meet customer demands across various sectors.

The bank’s Group Managing Director, Abubakar Suleiman, reaffirmed Sterling’s commitment to sustainable banking and long-term value creation for shareholders and stakeholders alike. He described the initiative as a timely response to the dynamic macroeconomic environment and a step toward achieving greater resilience.

The planned capital raise is subject to the approval of shareholders, relevant regulatory authorities, and market conditions. Analysts have described the move as a positive indicator of investor confidence in the bank’s governance and expansion strategy.

Sterling Bank has recently shifted focus toward becoming a full-fledged financial services provider, with significant investment in health, education, agriculture, renewable energy, and transportation – key sectors of Nigeria’s real economy.