Sterling HoldCo Gains $50m Capital Influx

Sterling Financial Holdings Company ( Sterling HoldCo) Plc has successfully raised $50 million (approximately N75 billion) to meet the Central Bank of Nigeria’s (CBN) recapitalisation directive for its subsidiaries.

This capital raise, which was secured through a private placement from a consortium of domestic investors and ultra-high-net-worth individuals in Lagos, is now in the final stages of regulatory approval.

Speaking at the recent signing ceremony for the placement, Mr. Yemi Odubiyi, Group Chief Executive Officer ( CEO) of Sterling Financial Holdings, emphasised the significance of this fresh capital and the trust placed in the company by investors.

Mr. Odubiyi noted that the funds raised underscore market confidence in Sterling HoldCo’s vision and potential within Nigeria’s financial services sector.

“The decision by investors to back Sterling HoldCo is based not just on our financial performance but on our ability to challenge the norm and deliver value through innovation,” said Mr. Odubiyi.

“Our evolution from a merchant bank to a dynamic enterprise with a proven track record across sectors gives us the confidence to capture growth opportunities both in Nigeria and beyond.”

Sterling transitioned to a full-fledged financial holdings company last year, forming two key subsidiaries: The Alternative Bank, which focuses on specialised financing, and Sterling Bank, the conventional commercial bank. This strategic shift has allowed Sterling to broaden its scope, placing it in a stronger position to pursue new ventures beyond traditional banking.

Sterling HoldCo has shown a steady rise in its financial performance, reporting a 51 percent increase in profit before tax in H1 2024 compared to the same period in 2023. Total assets also grew by 19 percent in the first half of 2024.

As the company continues its growth trajectory, its strategic investments under the ‘HEART of Sterling’ initiative—which targets the Healthcare, Education, Agriculture, Renewable Energy, and Transportation sectors—remain central to its approach.

Mr. Odubiyi reaffirmed the company’s commitment to driving sustainable growth across sectors and delivering long-term value for both society and investors.