The shareholders of Sterling Bank Plc on Tuesday at an Extra-ordinary General Meeting (EGM) gave approval to the lender to raise fresh capital of N20 billion in order to boost its operations and increase its capital adequacy level.
At the EGM, investors of the bank endorsed the fresh fund raising by passing three (3) special resolutions.
The first resolution reads, “That subject to regulatory approvals, the directors be and are hereby authorised to issue up to 7,471,698,113 ordinary shares of 50 kobo each from the company’s share capital by way of special/private placing to Messrs. Silverlake Investments Limited or such other identified strategic investor at a price of N2.65 per share or such other price as the directors may determine in the interest of the Company and subject to other terms and conditions and at such times as the directors may deem fit.”
Also, the first resolution authorised the directors to, in respect of the private placing, appoint such advisers, professionals and parties that they deem necessary, upon such terms and conditions that they may deem appropriate.
The second resolution authorised the directors to raise additional capital up to $200m or its equivalent in naira through any or a combination of the following: equity, global depository receipts, quasi equity, convertible loans, medium-term notes, bonds and any other debt instrument(s), whether secured or unsecured, seniour or subordinated by way of a public offering, rights issue, private placement.”
The third resolution authorised the directors to take any action required to give effect to the resolutions, including but not limited to entering into agreements, undertakings, assignments, guarantees, arrangements or such other mechanisms with any party or parties in order to implement, finalise and give full effect to the aforesaid resolutions.
Yemi Adeola, managing director and chief executive officer (MD/CEO), said of the Nigeria’s mid-tier lender said it is seeking to raise a total of N32 billion, and had initially raised N12 billion via a rights issue.
He said after raising the said amount, Sterling Bank will proceed to raise $200m Tier 2 capital.
According to him, the N20 billion additional capital will increase the bank’s capital base to N80 billion from N60 billion