By Andy Sambidge
Investment company says it has sold its stake to an independent Caribbean bank
Dubai-based Abraaj Group has announced that it has exited its investment in Ghana's HFC Bank Limited.
The Group said in a statement that it sold its stake in HFC to Republic Bank Limited (RepBank), an independent Caribbean 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 has become one of the leading domestic banks in Ghana and remained strongly capitalised, allowing it to increase its branch network, Abraaj said, adding that it currently has 27 branches across Ghana, and is working to open additional branches.
Abraaj said that its investment had help to grow lending to businesses and consumers, with loans and advances to customers increasing over 100 percent.
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, added: “The investment by Abraaj has enabled HFC to lay the foundations that will facilitate the next phase of our growth and expansion.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.