Shareholders of HFC Bank Ghana Limited on Thursday gave the nod for the bank to raise GHS 50 million from a private placement. This will increase its stated capital from the current GHS 45 million to GHS 95 million.
The private placement is also opened to the 10 largest shareholders including SSNIT, Union Bank of Nigeria, Ghana Union Assurance and Cocobod.
In addition, the shareholders also passed a special resolution to enable the bank acquire up to a maximum of five percent of its issued share capital in order to prevent depreciation of its stock on the capital market.
Asare Akuffo, Managing Director of HFC Bank to XYZ Business said this is the best way the company can address the capital requirement. He said this will enable the bank to compete in the market and maintain its status of a major player.
The bank said the additional capital will enable it grow its loan portfolio, participate in syndications leading to the financing of oil and gas as well as infrastructure and residential real estate projects.
Meanwhile, founding Managing Director of the bank, Stephanie Baeta Ansah has stepped down as a board member of the bank. She has occupied this position since 2005 when she resigned as the MD.
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