Sterling Bank Gets $15m to Support Islamic Banking

By Dipo Olowookere

The Non-Interest Banking unit of Sterling Bank Plc has attracted a $15 million facility from the Islamic Corporation for the Development of the Private Sector (ICD), a part of the Islamic Development Bank (IDB) Group.

Sterling Bank, in a statement, explained that the ICD extended the facility to it in view of its ability to use non interest banking contracts to structure transactions in innovative ways and the judicious use of past facility extended to it, adding that the fund would provide much needed liquidity to finance additional projects for the benefit of the public.

While assuring that the facility would be judiciously used, the financial institution also stated that it would continue to support the overall objectives of ICD which is mainly to finance projects and provide a wide range of financial products and services, support the development of Islamic financing in Nigeria and beyond through business expansion and complement the role played by ICD in the promotion of the private sector as a vehicle for boosting economic growth and prosperity.

The bank has assured that it will continue to intensify efforts to sell Sterling Alternative Finance offerings to customers and prospects and remain a reference institution in non-interest banking not only in Africa but globally.

With about 200 branches offering non-interest banking services, the Sterling Bank’s coverage is considered the best in Africa, quality of staff, consultants and advisors such as Sheikh Abdulkader Thomas who belongs to several advisory boards globally also gave the bank an edge over competitors.

It would be recalled that the bank in 2014 and 2015 also received a line of $25 million from the International Islamic Finance Trade Corporation (ITFC) and $30 million from the ICD. Both institutions are members of the Islamic Development Bank (IDB) Group.

In 2016, Sterling Bank Plc bagged the Non-Interest Bank of the Year–Africa award, for its non-interest banking window, the Sterling Alternative Finance. The award courtesy, ‘The European,’ is one of the major categories at the Global Banking & Finance Awards held in London.

ICD was established in November 1999 to support the economic development of its member countries through the provision of finance for private sector projects, promoting competition and entrepreneurship, providing advisory services to the governments and private companies and encouraging cross border investments.