The Board of Sterling Financial Holdings Company Plc will, at an upcoming annual general meeting (AGM), seek shareholders’ approval to raise up to N200 billion through various methods of share issuance in the Nigerian capital market, subject to regulatory approvals.
This was contained in the group’s notice of the Annual General Meeting signed by Temitayo Adegoke, the company’s Company Secretary sent to the Nigerian Xchange Group (NGX).
This decision reflects the ongoing efforts of banks to strengthen their capital reserves in light of evolving regulatory standards.
Notably, the recent introduction of minimum capital requirements by the Central Bank of Nigeria (CBN) emphasizes the imperative to enhance the resilience of the country’s financial system, facilitating a more substantial role for lenders in fostering economic growth.
According to the notice, the capital increase may be executed via rights issues, private placements, public offerings, or other transaction methods.
The pricing, coupon, or interest rates will be determined through book building or other acceptable valuation methods.
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The issuance may occur in various tranches, series, or proportions, with maturity periods and dates set by the Board of Directors.
Additionally, Sterling Financial Holdco will also seek approval to increase the share capital of the company by allotting up to 40 billion shares of 50 Kobo each.
These shares will rank pari-passu with the existing ordinary shares of the bank and may be issued at any time during the two-year period from the date of this resolution.
“That the Company be and is hereby authorized to raise additional capital of up to N200,000,000,000 (Two Hundred Billion Naira) through the issuance of shares in the Nigerian capital market by way of rights issues, private placements, public offerings, private and/or other transaction modes, at a price(s), coupon or interest rates determined through book building or any other acceptable valuation method or combination of methods, in such tranches, series or proportions, within such maturity periods and at such dates and upon such terms and conditions as may be determined by the Board of Directors of the Company, subject to obtaining the requisite approvals of the relevant regulatory authorities;
In furtherance of the above, the Directors be and are hereby unconditionally authorized pursuant to sections 127(1) and 149(1)(a) of the Companies and Allied Matters Act 2020 as amended by the Business Facilitation Act 2022 to increase the share capital of the Company by the allotment of up to 40,000,000,000 (Forty Billion) shares of 50 Kobo each ranking pari-passu with the existing ordinary shares of the Company at any time or times during the period of 2 (two) years from the date hereof” the statement reads.
By: Babajide Okeowo
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