Sterling HoldCo secures $50m to meet CBN recapitalisation directive

Sterling Financial Holdings Company Plc has completed a $50 million capital raising exercise, aimed at meeting the Central Bank of Nigeria’s (CBN) recapitalisation directive for its subsidiaries.

The move, equivalent to around N75 billion, was executed through a private placement involving domestic investors and ultra-high-net-worth groups in Lagos.

The Group Chief Executive Officer of Sterling Financial Holdings Company, Yemi Odubiyi, noted the significance of the capital raise during the signing ceremony, stating that it reflects the market’s confidence in the company’s vision and potential.

“The investors’ decision to entrust Sterling HoldCo with their hard-earned capital is built on our ability to challenge the norm in Nigeria’s financial services sector,” he said.

“Our investors recognize that beyond the profits declared and dividend payouts, we are an enterprise that has consistently demonstrated capacity for innovation, creating and leveraging new opportunities within and outside the industry to deliver value to all our stakeholders.”

He further added that Sterling has evolved from its modest beginnings as a merchant bank into a dynamic enterprise with a proven track record that extends well beyond conventional banking.

He said, “Now powered by an embedded technology stack that is flexible to the unique demands of the market, we are more than confident in our ability to capture major growth opportunities in Nigeria and beyond.

“Our vision, performance, and journey continue to be rewarded with the highest form of investor confidence – more capital. This infusion of funds not only reflects the trust our investors place in us, but also serves as a powerful endorsement of our strategy and future potential. With it, we reaffirm our commitment to driving social, sector, and economic growth beyond banking.

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“By investing in and incubating new subsidiaries, we will prioritise value creation that stimulates and sustains growth for both the enterprise and the nation’s economy. Our investment strategy is anchored in sustainable practices that will deliver long-term value for society and consistent returns for investors.”

Sterling HoldCo transitioned last year from a commercial bank into a full-fledged financial holdings company, overseeing two subsidiary banks: The Alternative Bank and Sterling Bank. The company has shown significant growth, including a 51% increase in profit before tax and a 19% growth in total assets in the first half of 2024.

The company’s investment strategy, known for its HEART of Sterling focus, targets key sectors including Healthcare, Education, Agriculture, Renewable Energy, and Transportation, demonstrating its commitment to driving long-term value for both society and investors.