Sterling Financial Holdings Co. Plc plans to raise as much as $400 million in fresh capital through a mix of debt and equity instruments, while also seeking shareholder approval for a 10-for-1 share consolidation and capital reduction.
The proposals, set out for the company’s June 9 annual general meeting, come as the group looks to strengthen its balance sheet and preserve flexibility for future growth, including possible issuance of ordinary shares, preference shares, bonds or global depositary receipts in Nigeria or abroad.
Capital Restructuring
The bank’s board is also seeking approval to consolidate 68.5 billion existing shares into 6.85 billion shares, followed by a corresponding reduction in issued share capital and the creation of a share reconstruction reserve.
Any fractional entitlements from the split would be rounded down or otherwise handled by management, with proceeds distributed to affected shareholders or treated in a manner the company deems fair and reasonable.
Funding Flexibility
If the capital raise is executed through shares, the board would be authorized to increase issued share capital accordingly and amend the company’s constitutional documents to reflect the new structure.
The broader package gives Sterling Bank the latitude to tap domestic and international markets in tranches, subject to regulatory approvals, as it seeks to position itself for expansion and manage capital efficiently.
AGM Agenda
The AGM will also cover the audited 2025 accounts, director re-elections, auditor remuneration and the election of audit committee representatives. Non-executive director fees for 2026 would be fixed at ₦191.1 million under the ordinary business agenda.
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