Republic Bank Now Owns 40% Of HFC Bank Ghana

Port of Spain, Trinidad: Friday September 27, 2013: Republic Bank Limited has announced its acquisition of an additional 7.98% shareholding in HFC Bank Ghana, moving its shareholding to 40%.

The transaction, which involved the purchase of 23,638,340 ordinary shares at a price of GHS 0.67 (USD 0.31) per share, has strengthened the Bank’s position as the single largest shareholder in HFC Bank. Republic Bank earlier held a 32.02% shareholding in the Ghanaian bank. The share purchase was made on Thursday September 26 on the Ghana Stock Exchange and represented shares previously held by Union Bank of Nigeria.

In commenting on the increased shareholding, Managing Director of Republic Bank Limited, David Dulal-Whiteway emphasized Republic Bank’s philosophy of maintaining strong local participation in all of its overseas investments. According to Dulal-Whiteway, “A look at our subsidiaries will illustrate our model of maintaining strong local ownership through shareholders who are representative of the respective market. While we think like a global bank, we always try to act local in our business dealings, ensuring that there is strong local input, strong local content and knowledge and strong local influence in decision making. Our investment in HFC Bank Ghana will be no different”.

Background:

HFC Bank (Ghana) was licensed as a commercial bank in 2003, and today operates 26 branches throughout Ghana, providing a wide range of banking services, including mortgages and real estate services, commercial banking, investment banking, microfinance, private equity and venture capital fund management. It was instrumental in the development of the mortgage industry in Ghana and continues to be the leading home loan provider in that country, commanding 30% of the market. HFC Bank has an asset base of US$301 million and profit after taxation of US$7.7 million based on its last published financials.

Republic Bank Limited is an independent Caribbean bank with a history that spans 176 years of service. It has its roots in the Colonial Bank, which started business in Trinidad and Tobago in 1837, later becoming Barclays Bank Trinidad and Tobago Limited and eventually Republic Bank Limited. As at June 30, 2013, Republic Bank has an asset base of US$8.8 billion (TT$56.1 billion) and profit after taxation of US$136.8 million (TT$870.6 million).