Sterling Bank Ignites Growth Engine With Massive $400M Capital Raise

Sterling Bank Set to Raise $400 Million to Bolster Growth and Financial Resilience

Sterling Bank Plc has unveiled bold plans to raise up to $400 million through a combination of debt and equity instruments, a move that aims to strengthen its capital base and reinforce its long-term growth trajectory.

According to iReporter Online, the decision was ratified during the bank’s second Annual General Meeting, conducted virtually, where shareholders gave their nod for the proposed capital raise. The funds are expected to be mobilized via a Shelf Programme that enables Sterling Bank to issue financial instruments in tranches over a specified duration.

In a regulatory disclosure signed by the Company Secretary, Adeyoola Temple, Sterling Bank disclosed that it had secured authorization to raise the equivalent of $400 million in either Naira or foreign currencies. The bank is permitted to explore instruments such as bonds, commercial papers, sukuks, debentures, short-to-medium-term notes, preference shares, ordinary shares, and global depositary receipts.

Issuance modalities will include public offerings, private placements, rights issues, or any other mechanisms sanctioned by regulatory authorities. Book building and other valuation techniques will determine pricing and interest rates.

To support the capital expansion, Sterling Bank’s Board received a sweeping two-year mandate—backed by Sections 127(1) and 149(1)(a) of the Companies and Allied Matters Act 2020, as amended by the Business Facilitation Act 2022—to raise and adjust its share capital as required. In cases of rights issues, the Board retains the discretion to reallocate unclaimed shares to interested shareholders.

Furthermore, the bank plans to list and trade the new securities on the Nigerian Exchange Limited (NGX), FMDQ Securities Exchange, or other suitable domestic and international platforms. According to iReporter Online, the Board has also been empowered to amend the bank’s Memorandum and Articles of Association to reflect the expanded capital structure and has tasked the Company Secretary with filing all requisite documentation with the Corporate Affairs Commission (CAC).

Sterling Bank confirmed that it will engage top-tier professional advisers to ensure full compliance with regulatory requirements and streamline the capital raise process. This includes securing approvals from relevant financial authorities and ensuring adherence to all legal and corporate governance standards.

“This strategic capital raise not only signals our readiness for broader expansion but also strengthens our positioning for global competitiveness and strategic partnerships,” a source close to the bank’s leadership told iReporter Online.

In a related development, Sterling Bank earlier announced a customer-friendly initiative by removing charges on all local mobile app transfers—a policy first unveiled on April 1st and later confirmed to be authentic, despite public skepticism due to its April Fools’ Day timing.

With this dual-pronged approach of financial innovation and operational expansion, Sterling Bank is signaling its intent to lead a new era of customer-first, growth-driven banking in Nigeria and beyond.

”IREPORTER REPORTS”