Tuesday January 21, 2014/Sterling Bank/Press Release
Sterling Bank Plc a full service National Commercial Bank concludes its rights issue with 103.3% subscription.
The rights issue of 5,888,949,162 ordinary shares of 50 kobo each offered at N2.12 per share opened on June 24, 2013 with strong support from shareholders; as a result of which the shares were oversubscribed.
Total valid applications received totalled N12.9 billion - 3.3% above the expected N12.5 billion. Details of the allotment are contained in the allotment announcement. The new shares were listed today on the floor of the Nigerian Stock Exchange; following which Sterling Bank became the 31st most capitalized stock (from 38th position) with a market capitalization of N52.9 billion.
Speaking on the rights issue, Yemi Adeola, MD/CEO said: We are pleased with the outcome of the rights issue and the success rate reflects shareholders’ confidence in our strategy and execution capabilities.
We are also in the process of concluding a private placement of US$120 million to further strengthen our capital position. These are part of our US$400 million capital raising plan comprising US$200 million each in tiers 1 and 2 capital respectively. The US$200 million tier 2 capital will be raised through a multi-currency debt issue expected to come through this year.
Our goal this year is to increase our capital position to an excess of N100 billion, with the funds deployed to support our growth plans. We will invest in information technology, distribution outlets and alternative delivery channels; while leveraging the enhanced capital position to support lending. We are very optimistic about our capital plans and would continue to deliver superior returns to shareholders.