The Abraaj Group, a leading investor operating in growth markets has sold its stake in HFC Bank to Republic Bank.
The Abraaj Group, through one of its Funds, acquired its initial stake in HFC in 2010 and made an additional investment in 2012.
During Abraaj’s investment, HFC became one of the leading domestic banks in Ghana and remained strongly capitalised, allowing it to increase its branch network.
HFC currently has 27 branches across Ghana, and is working to open additional branches as it expands its reach.
With The Abraaj Group’s support, lending to businesses and consumers and deposits has grown significantly, with loans and advances to customers increasing over 100 per cent from GHS160 million to GHS330 million, and deposits from customers growing over 150 per cent from GHS123 million to GHS312 million.
HFC Bank was formed in 1990, and listed on the Ghana Stock Exchange (GSE) in 1995.
The Bank existed as an independent mortgage finance institution until 2003, when it expanded into universal banking, providing a wide variety of financial services.
Commenting on the exit, Jacob Kholi, Partner, The Abraaj Group, said: “Our investment in HFC was well timed as we capitalized on the rapid growth in the banking sector in Ghana. With the support of the other stakeholders, the Bank executed a successful strategy which has attracted a lot of strategic interest. This created the opportunity for our successful exit. We believe that the new partnership being forged with RepBank will propel HFC to the next level of its growth.”
Mr. Asare Akuffo, Managing Director of HFC, commented: “The investment by Abraaj has enabled HFC to lay the foundations that will facilitate the next phase of our growth and expansion.”
The acquiring company, RepBank, is an independent Caribbean bank with a history that spans 176 years of service. RepBank has its roots in the Colonial Bank which started business in Ghana in 1837.
Source: The Abraaj Group