Sterling Financial Holdings Company Plc has taken a major step toward meeting the Central Bank of Nigeria’s (CBN) recapitalisation requirements for its subsidiaries with the infusion of $50 million of fresh capital in a single decisive move.
This capital injection of approximately N75 billion was achieved through a private placement from a consortium of domestic investors and ultra-high-networth groups in Lagos last week and is in the final stages of approvals by the regulators.
Speaking at the signing ceremony for the placement, Yemi Odubiyi, Group Chief Executive Officer of Sterling Financial Holdings Company said that this capital raise signifies the market’s confidence in the vision and potential of the enterprise.
According to Odubiyi, “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. 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.”
Odubiyi continued by saying, “From our modest beginnings as a merchant bank, we have evolved into a dynamic enterprise with a proven track record that extends well beyond conventional banking. 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.”
The Group CEO concluded, “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. 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.”
Last year, Sterling HoldCo transitioned from a commercial bank to a full-fledged financial holdings company with two subsidiary banks: the specialised financing arm, The Alternative Bank, and the conventional commercial bank, Sterling Bank. With several key businesses in the pipeline, the holding company is strategically positioned to seize opportunities beyond those available to its peers.
Sterling HoldCo’s performance has seen a steady rise in its fortunes with a 51 percent increase in its profit before tax in H1 2024 compared to the same period in 2023, and a 19 percent growth in the total assets of the company in just the first half of 2024.
