• Tuesday, May 28, 2024
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BusinessDay

Sterling Bank to raise N37bn capital

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In order to successfully implement its medium- to long-term strategic objectives, Sterling Bank plc desires to raise additional capital in second quarter (Q2) 2013.

Both the tier-1 and tier-2 capital that would be raised in phases would amount to N37 billion.

The bank told its shareholders at its 51st annual general meeting held last week in Lagos that it proposed to do this by adopting the following approach: phase (1) –which will involve raising tier-1 capital through a right issue of N12 billion and private placement of N19.2 billion.

“The process commenced in the first quarter of 2013,” said S.A Adegunwa, chairman, Sterling Bank plc.

In the phase 11, the bank plans to raise tier-2 capital (subordinated debt) of N25 billion. “The process will commence in the third quarter (Q3) of 2013, and will be completed in the first quarter of 2014,” he said.

It would be recalled that the bank successfully divested its interest in non-core banking subsidiaries in line with the requirements of the national banking licence.

He said: “In 2012, we made further progress, diverting our stakes in Safetrust Saving and Loans Limited and Opticom Nigeria Limited. The process of divestment from Nigerian Stockbrokers Limited is expected to be completed by mid-2013, while we await final approval from the Central Bank of Nigeria (CBN) to retain our investment in Associated Discount House Limited (ADHL).”