Sterling Bank Plc on Wednesday got the approval of its shareholders to increase the bank’s share capital from N12bn to N16bn with the creation of additional eight billion ordinary shares of 50 kobo each.
The Managing Director and Chief Executive Officer, Sterling Bank, Mr. Yemi Adeola, explained that the capital raising exercise was something the bank conceived years back.
He said, “Capital raising exercise was premeditated as far back as two years ago. We set out to raise $400 divided into three classes. Class A is the rights issue, which was successful, in December last year. Stage B is the private placement of about N18bn and we are on it right now. And the third one is the tier 2 capitals.”
He explained that when raised, about $30m would go into delivery channels – branches, automated teller machines, point-of-sale terminals, etc.
“Another chunk of it – about $40m-$50m will go toward technology and the rest will be working capital to enable us to lend to our customers and do more business,” he added.