Sterling Financial Holdings Company Plc will seek shareholder approval to raise up to $400 million in fresh capital at its Annual General Meeting scheduled for June 9, 2026.
The proposed capital raise is aimed at strengthening the company’s balance sheet and supporting future growth initiatives.
According to a statement signed by the Company Secretary, Sunny Kanabe, the fundraising plan will be presented without prejudice to previous capital-raising approvals granted during the company’s AGM held on July 11, 2025.
The company stated that the capital could be raised in naira, United States dollars or other currencies, depending on market conditions and board decisions.
“Company be and is hereby authorized to raise up to US$400,000,000 (Four Hundred Million United States Dollars) or its equivalent in Naira or other currencies,” the statement read.
Sterling explained that the fundraising could take place in tranches and may involve multiple financial instruments.
The proposed instruments include bonds, convertible or non-convertible debt securities, preference shares, ordinary shares, global depositary receipts or a combination of financing options in both Nigerian and international capital markets.
The company added that the capital could be raised through a public offer, private placement, rights issue or other methods, subject to approvals from relevant regulators.
The latest proposal follows a similar capital-raising approval secured by Sterling Bank Plc during its second Annual General Meeting held virtually in July 2025.
At the time, the bank announced plans to establish a Shelf Programme that would allow it to issue financial instruments in multiple tranches over a defined period.
The upcoming AGM will also consider a major share restructuring plan.
Shareholders will vote on a proposal to consolidate 68.5 billion ordinary shares of 50 kobo each into 6.85 billion ordinary shares on the basis of a 10-for-1 ratio.
The company also plans to cancel and extinguish 61.65 billion issued ordinary shares, reducing the issued share capital to N3.43 billion, subject to court confirmation.
Sterling stated that any fractional entitlements resulting from the consolidation would either be rounded down to the nearest whole share or aggregated and sold in the market. Proceeds from the sale would then be distributed proportionately to affected shareholders.
According to the company, the amount generated from the capital reduction will be transferred into a share reconstruction reserve account and applied in line with applicable laws and management decisions.
If shareholders approve the restructuring, the board will also be authorised to amend the company’s Memorandum and Articles of Association to reflect the new share capital structure.
Meanwhile, Sterling Financial Holdings recently reported strong financial performance for the year ended December 31, 2025.
The group recorded a profit before tax of N86.78 billion, representing an 89.19 per cent increase from N45.86 billion reported in 2024.
Gross earnings rose by 44.37 per cent year-on-year to N486.80 billion, compared with N337.19 billion in the previous year.
Profit after tax also increased significantly to N76.33 billion from N43.68 billion in 2024, reflecting continued earnings growth despite rising operating costs and loan impairment pressures.
