Sterling HoldCo seeks fresh ₦87.1bn capital to meet CBN requirement

Sterling Financial Holdings Company Plc (Sterling HoldCo) has initiated a public offer to raise ₦87.067 billion to meet the Central Bank of Nigeria’s (CBN) new capital requirements for banks.

The offer, which began on September 17 and is scheduled to close on September 30, 2025, involves the sale of 12.581 billion ordinary shares at ₦7 per share.

The capital raise is aimed at strengthening the capital base of Sterling Bank Limited, providing capital for SterlingFi Wealth Management, and supporting the group’s broader strategic expansion plans.

Yemi Adeola, the Chairman of Sterling HoldCo, stated that the group has already completed two previous capital-raising rounds in 2024: a ₦75 billion private placement and a ₦28.79 billion rights issue, both of which were oversubscribed.

These previous efforts enabled Alternative Bank to fully meet its regulatory capital requirements. However, Sterling Bank still needs an additional ₦43 billion to maintain its current license. The company also has a ₦10.29 billion special placement awaiting regulatory approval.

Adeola emphasized that the net proceeds from the ongoing public offer will be used for the full recapitalization of Sterling Bank Limited, with funds directed toward investments in digital banking, technology infrastructure, and growth across retail, SME, and corporate segments.

A portion of the funds will also be used to strengthen SterlingFi Wealth Management and position the holding company for future expansion and revenue diversification.

“We are confident in our ability to navigate volatility while capturing growth. Our strategy remains focused on deepening our market share, enhancing customer experience through technology, and maintaining prudent capital and liquidity buffers,” Adeola noted.