Republic Bank Will Continue To Liaise With Ghana Authorities

Port of Spain, Trinidad, Tuesday May 13, 2014: Republic Bank Limited has noted with concern the press release issued by HFC Bank, which asserts the following:

1. That Republic Bank breached the collaborative theme agreed to between the two parties
2. That the Board of HFC was surprised by Republic Bank’s actions
3. That RBL was not complying with applicable legal and regulatory requirements under Ghana’s laws.

In November of 2012, Republic Bank Limited and HFC Bank (Ghana) Limited entered into a Share Subscription Agreement, which set the framework for the investment by Republic Bank in HFC Bank. The agreement signed on 6th November, 2012,clearly stated that RBL would not increase its shareholding in HFC Bank beyond 40% for a period of one year without the prior approval of the Board of Directors. Both parties recognised that the mandatory takeover code would be triggered if Republic acquired over 30% during the one year period and that the process would have to be followed. Republic’s interest in gaining majority control of HFC Bank after the one year period was also understood by all.

From our initial entry into Ghana in November 2012, Republic Bank has meticulously adhered to the rules and regulations laid down by the Bank of Ghana and the Ghana Securities and Exchange Commission and where there has been ambiguity, we have sought clarification and guidance from our Ghana advisors and the regulatory authorities.  Correspondence to Republic Bank from the regulators has always been copied to the Managing Director HFC Bank so there should be no question of surprise to the Board.