Abraaj Group exits investment in Ghana bank
Accra, Ghana, July 31, 2013
The Abraaj Group, a Dubai-based investor firm, has exited from its investment in Ghana-based HFC Bank, by selling its stake to the Republic Bank, an independent Carribean bank.
The group acquired its initial stake in HFC in 2010 through one of its funds and made an additional investment in 2012.
During the investment, HFC has become one of the leading domestic banks in Ghana and remained strongly capitalised, allowing it to increase its branch network. It currently has 27 branches across Ghana, and is working to open additional branches as it expands its reach.
Deposits have grown significantly, with loans and advances to customers increasing over 100 per cent and deposits from customers growing over 150 per cent, said a statement.
Jacob Kholi, partner, The Abraaj Group, said: “Our investment in HFC was well timed as we capitalised 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.”
Asare Akuffo, managing director of HFC, said: “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, has a history that spans 176 years of service and its roots in the Colonial Bank which started business in Ghana in 1837. - TradeArabia News Service