Editorial Team

Emmanuel Udom-Managing Editor, Stephen Dijo Philemon-Deputy Editor, Janet Udom-Senior Correspondent, Precious Udom-Senior Correspondent, Williams Ita-Bureau Chief(Akwa Ibom/Cross River), Fabian Idoko-Senior Correspondent
  • ABURIGHT NIGERIA COMPANY

    Manufacturer's Representative Import Export General Merchandise Contract Adress: Araromi Quarters, Owode Area, Ifo, Ogun state, Nigeria P.O.Box 2632, Oshiodi, Lagos Telephone: 2348166719412

    Tuesday, 11 October 2016

    Sterling bank plans to raise N86bn capital



    Sterling Bank Plc has secured regulatory approval from the Nigerian Stock Exchange, NSE, to raise about N8 billion in new capital as a first step in a large new capital issuance through which the lender seeks to raise a total of N65 billion.

    The financial house would be raising the new capital through an indirect special purpose vehicle known as Sterling Investment Management SPV Plc,  a regulatory document obtained by the Nation on Tuesday, October 11 showed.

    According to the document, Sterling Investment Management SPV will be offering for subscription N7.965 billion in its series 1: seven-year 16.50 per cent fixed rate unsecured bonds due 2023. The maiden issuance is part of the bank’s N65 billion debt issuance programme.
    Sources in the know confirmed that the SPV is a tier-11 capital raising programme for Sterling Bank, describing it as a creative way to shield the bank from unnecessary regulatory and market issues while having access to the much-needed capital.
    The document indicated that the Nigerian Stock Exchange (NSE) has already approved the debt issuance, paving the way for the bank to conclude the pre-offer opening processes.
    Global Credit Ratings (GCR) has accorded a final, public national scale long term rating of BBB (NG) to the N7.97 billion bond; with the outlook accorded as stable. The rating is valid until 31 August 2017.
    Managing Director, Sterling Bank Plc, Yemi Adeola, recently said the bank was concluding arrangements to raise tier 2 capital in the second half of this year as improved assets quality and lower cost of fund steadied the performance of the bank in the first half of this year.
    He said the bank would in the second half of the year continue to prioritise operating efficiency and ensure moderate loan growth; while continuing to diversify funding sources as our retail banking strategy gains traction.
    He added that the bank also remained committed to its plan to conclude its N35 billion tier 2 capital raising.

    Source: bizwatchnigeria


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