31st July, 2013
The Abraaj Group, a United Arab Emirates financial group today announced its sale of its stake in HFC Bank Ghana to Republic Bank Limited (RepBank), an independent Caribbean bank, according to a statement by Emily Hargreaves of RLM Finsbury, the group’s PR consultants.
Details of the transaction were not disclosed.
The Group, through one of its Funds, acquired its initial stake in HFC in 2010 and made an additional investment in 2012. During the time, HFC increased its branch network to 27 and became one of Ghana’s leading commercial bank. Loans portfolio increased from GHS160 million to GHS330 million, and deposits from customers grew 150 per cent from GHS123 million to GHS312 million.
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.
The Abraaj Group is a leading investor operating in the growth markets of Asia, MENA, Turkey and Central Asia, Sub-Saharan Africa and Latin America. In 2012 it completed the merger of Aureos Capital, thereby creating the deepest bench of private equity experience across growth markets.
Employing over 300 people, the Group has over 30 offices spread across 6 regional hubs in Dubai, Istanbul, Mexico City, Mumbai, Nairobi and Singapore. Local presence across these markets provides the Group with unmatched expertise, know-how, proprietary transactional access and the ability to grow partner businesses across borders.
The Group currently manages US$ 7.5 billion across 25 sector and country-specific Funds, encompassing private equity (majority and significant minority investments with ticket sizes between US$ 10 million to US$ 100 million) and real estate (primarily yield-generating) investments.