Banking mogul Yemi Odubiyi secures $45-million capital boost for Sterling HoldCo

Oluwatosin Racheal Alabi -

Key Points

  • Banking mogul Yemi Odubiyi led Sterling HoldCo to secure a N75-billion ($45 million) capital injection, reflecting investor confidence in the company’s innovative approach.
  • Sterling HoldCo recorded a 51% profit increase before tax in H1 2024, driven by Yemi Odubiyi’s strategic leadership and focus on sector-wide growth.
  • The N75-billion capital raise aligns with Sterling HoldCo's commitment to sustainable practices, ensuring long-term value creation under Yemi Odubiyi’s guidance.

Sterling Financial Holdings Company, led by banking mogul Yemi Odubiyi, has announced a N75-billion ($45 million) capital injection through a private placement, showcasing investor confidence in the company’s innovative approach to the financial services sector.

Yemi Odubiyi, the Group Chief Executive Officer, emphasized that this fresh capital, raised from domestic investors and high-net-worth individuals, reflects trust in Sterling HoldCo's ability to drive growth and create value in Nigeria’s banking industry. This capital raise is also part of the group's strategy to meet the Central Bank of Nigeria’s new recapitalisation requirements.

This private placement, currently awaiting regulatory approval, underscores the market’s trust in Yemi Odubiyi's leadership and Sterling HoldCo's transformation from a commercial bank to a diversified financial holding company.

"Our investors recognize that we consistently go beyond profits and dividends, delivering real value through sector-wide innovation," Odubiyi stated. The capital injection will further empower Sterling HoldCo to invest in new ventures, foster innovation, and extend its influence across multiple sectors in Nigeria.

Yemi Odubiyi drives innovation and growth at Sterling HoldCo

Yemi Odubiyi has been able to establish Sterling HoldCo as a front-runner in innovation and exploring the future growth areas beyond core banking in Nigeria. Since its strategic shift in 2023, the group now operates two subsidiary banks: The Alternative Bank which is a specialized financing institution and Sterling Bank which a conventional commercial bank. When Odubiyi was at the helm, the Sterling HoldCo posted 51-percent growth in profit before tax in H1 2024 and 19% growth in total asset base. This capital injection is also believed to help the group in expanding its innovation capabilities and generate sustainable value.

Sterling HoldCo’s sustainable growth model

Yemi Odubiyi emphasised that this capital increase is not only indicative of investors’ confidence but is also a part of credible and steady management’s strategy at Sterling HoldCo. Odubiyi states, “Our investment policy is oriented towards sustainable social and sector growth.”

Since the company has already adopted sophisticated technologies pertinent to the firms’ business processes and have started venturing into other business fields, the Sterling HoldCo remain optimistic to deliver stable and higher rates of returns to investors as well as, be an impactful factor to the Nigerian economy growth.