Display options Mobile website

Business News of Tuesday, 11 December 2012

Source: Daily Graphic

HFC Bank increases stated capital

HFC Bank has increased its stated capital from GH¢45million to GH¢95 million as the result of the private placement the bank undertook to shore up its minimum capital requirements as stipulated by the Bank of Ghana. The bank has therefore added 112,420,246 ordinary shares to the company’s number of issued shares bringing the total number of issued shares to 296,080,918.

The bank’s shareholder’s funds have equally increased to GH¢129 million and this has changed the shareholding structure. The existing shareholders which comprises Social Security and National Insurance Trust, Aureos Africa Fund and Ghana Union Assurance took a total of 70.82 per cent of the amount offered while a new investor, Republic Bank of Trinidad took up 29.18 per cent.

Republic Bank of Trinidad is the largest financial institution on the Caribbean with total assets of over US$7 billion and has over 60 years experience in the financing of the oil and gas sector in Trinidad and Tobago. According to the HFC, with this fresh of capital injection, the bank is poised to grow all aspects of its universal banking business by working together with their customers.

HFC Bank was incorporated on July 7 1993, as a wholly-owned subsidiary company, Home Finance Investment Fund Limited (HFIF), to undertake the business of an investment company. October 1 2001 HFIF changed its name to HFC Investment Services Limited(HFC-ISL) in order to take on other businesses. The organization was licensed by Bank of Ghana as a Non-Bank Financial Institution (NBFI) in August 1994 under the Financial Institutions (Non Banking) Law, 1993 (PNDCL 328).

It converted to a public company on October 5 1994 and got listed on the Ghana Stock Exchange (GSE) on March 17 1995 at an IPO price of ¢100 per share and issued with a Deposit-Taking Authorisation by Bank of Ghana on July 30 2001. This was followed with the issuance of a Universal Banking License by Bank of Ghana on November 17 2003 as a banking institution.

HFC Bank provides a comprehensive range of mortgage financing, commercial banking and investment banking services. In this regard, HFC has played a pivotal role in the development of Ghana’s money and capital markets.

HFC offers mortgage loans to enable individuals purchase and own houses. The bank provides special packages are available for recognised groups, associations and institutions to meet the home ownership goals of their employees and/or members.

HFC Bank established the first unit trust in Ghana, HFC Unit Trust, which began operations in July 1991 and also the first real estate investment trust, HFC Real Estate Investment Trust (HFC-REIT), in August 1994.

Through its banking and investment management operations, a wide range of financial and investment services are offered to individuals and corporate bodies. Funds management, Brokerage, Property management, Current and Deposit accounts and all forms of credit facilities are provided. Currently HFC-ISL manages the following funds; The HFC Unit Trust; HFC REIT; HFC Equity Trust and HFC Future Plan Trust.

On September 17, 17 1996, HFC issued the first corporate bond (HFC Housbond) on the Ghana Stock Exchange with a shelf registration of $35 million to finance foreign currency mortgages. GB

Comments:
This article has no comments yet, be the first to comment