Sterling Financial Holdings Company Plc has made significant progress in its efforts to comply with the Central Bank of Nigeria’s (CBN) recapitalisation requirements for its subsidiaries, securing $50 million in fresh capital. This move, equating to approximately N75 billion, was accomplished through a private placement involving a consortium of domestic investors and ultra-high-net-worth individuals in Lagos. The capital raising exercise is now in the final stages of regulatory approval.
During the signing ceremony for the private placement, Yemi Odubiyi, Group Chief Executive Officer of Sterling Financial Holdings, underscored the importance of this achievement. He highlighted that this capital injection is a testament to the market’s confidence in the company’s vision and future potential.
Odubiyi stated, “The decision by investors to commit their capital to Sterling HoldCo is a reflection of the confidence they have in our ability to challenge the norm within Nigeria’s financial services sector. These investors see beyond profits and dividends; they recognize the value we bring through consistent innovation and our capacity to leverage new opportunities to deliver value across the board.”
He further explained that the company’s transformation from a merchant bank into a dynamic financial enterprise has allowed it to remain at the forefront of innovation. Sterling HoldCo now boasts an embedded technology stack, designed to meet the demands of the market and propel growth not just within Nigeria, but beyond its borders.
Strategic Vision and Future Potential
“Our vision, performance, and journey continue to be rewarded with investor confidence,” Odubiyi added. “This infusion of capital signifies more than just financial support – it’s a powerful endorsement of our long-term strategy and future potential. We remain committed to driving growth that transcends traditional banking, fostering economic and social development.”
The new capital will enable Sterling HoldCo to prioritise value creation through investments in new subsidiaries, aligning with sustainable practices that benefit both the enterprise and the Nigerian economy. According to Odubiyi, the group’s investment strategy focuses on delivering long-term value for society and consistent returns for its investors.
Positioning for Growth Beyond Banking
Sterling Financial Holdings made a significant shift last year, transitioning from a commercial bank to a fully-fledged financial holdings company. The company now operates two key subsidiary banks: The Alternative Bank, which focuses on specialised financing, and Sterling Bank, the traditional commercial banking arm. With new business ventures in the pipeline, the group is well-positioned to seize emerging opportunities.
In the first half of 2024, Sterling HoldCo reported a 51% increase in profit before tax compared to the same period in 2023. The company also achieved a 19% growth in total assets within the same period, further solidifying its position in the Nigerian financial market.
Sterling HoldCo’s well-known HEART of Sterling strategy, which channels major investments into the Healthcare, Education, Agriculture, Renewable Energy, and Transportation sectors, continues to shape its operations and drive sustainable growth.
This capital infusion represents not only an endorsement of Sterling HoldCo’s performance but also an investment in Nigeria’s economic future, setting the company on a path to continued success.
