RenounceableRightsIssueOfferCircular STANDARDCHARTEREDLIMITED (IncorporatedinGhanaasalimitedliabilitycompanyon18September1970undertheCompaniesAct,1963(Act179)with 100,000,000authorisedshares)

CIRCULARTOSHAREHOLDERS

REGARDING

ARENOUNCEABLERIGHTSISSUEOF1,655,172 NEWORDINARYSHARESOFNOPARVALUEATGH¢29 PERSHARE

Sponsoredby

ICSECURITIES(GHANA)LIMITED

ICSecuritiesisactingasthesponsoringbrokertoSCBGLforthisOffer.ICSecuritiesisindependentofthe Bank.ICSecuritieshasreliedoninformationprovidedbytheBankanditsadvisorsandaccordingly,IC SecuritiesdoesnotprovideanyassuranceoftheaccuracyoftheinformationcontainedinthisCircular.IC Securitiesdoeshoweverconfirmthattothebestofitsknowledge,thisCircularconstitutesafullandfair disclosureofallmaterialfactsabouttheBankandtheOffer.

BELAhasactedaslegaladvisorstoSCBGLonthisOfferhavingreliedoninformationprovidedbytheBank. Accordingly,BELAdoesnotprovideanyassuranceoftheaccuracyoftheinformationcontainedinthis Circular.BELAdoeshoweverconfirmthattothebestofitsknowledge,thisCircularconstitutesafullandfair disclosureofallmaterialfactsabouttheBankandtheOffer.

Deloitte&ToucheactedasthereportingaccountanttothisOffer.TheReportingAccountanthasreliedon informationprovidedbytheBankanditsauditors.Deloitte&Touchedoesnotprovideanyassuranceofthe accuracyoftheinformationcontainedinthisCircular.Deloitte&Touchedoeshoweverconfirmthattothe bestofitsknowledge,thisCircularconstitutesafullandfairdisclosureoftheallmaterialfactsabouttheBank andtheOffer.

Dated:28th October2009

StandardCharteredBankGhanaLimited TABLEOFCONTENTS...... 3 TABLEOFEXHIBITS...... 4 CORPORATEINFORMATIONONSTANDARDCHARTEREDBANKGHANALIMITED...... 6 TRANSACTIONPARTIES...... 7 DEFINITIONS...... 8 LEGALADVISORS'COMPLIANCECERTIFICATE...... 11 PART1 – THEOFFER...... 14 1.1 LegalBasisForTheOffer...... 14 1.2 ReasonsForTheOffer...... 14 1.3 UseOfFunds...... 14 1.4 KeyTermsOfTheOffer...... 14 1.5 Application...... 16 1.6 EscrowAccount...... 16 1.7 Allotment...... 16 1.8 Refund...... 17 1.9 Payment...... 17 1.10 LodgementOfCompletedApplicationForms...... 17 1.11 CostOfTheOffer...... 18 1.12 OfferStatistics...... 18 PART2-THEGHANAIANBANKINGINDUSTRY...... 19 2.1 EconomicBackground...... 19 2.2 TheBankingIndustry...... 19 2.3 PerformanceOfTheBankingSector...... 19 2.4 RegulatoryDevelopmentsInTheBankingSector...... 20 2.5 MarketDevelopments...... 20 PART3 – STANDARDCHARTEREDBANKGHANALIMITED...... 22 3.1 HistoryAndBackground...... 22 3.2 CapitalStructure...... 22 3.3 ShareIssueHistory...... 23 3.4 Services,ProductsAndKeyBusinessActivities...... 23 3.5 Top20Shareholders...... 24 3.6 CorporateGovernanceStructures...... 25 3.7 TheBoardOfDirectors...... 26 3.8 HumanResourcesAndSeniorManagement...... 27 3.9 KeyManagementCommittees...... 28 3.10 CompensationSchemes...... 29 3.11 InformationAndCommunicationTechnology(“ICT”)...... 29 3.12 SubsidiariesAndAssociateCompanies...... 30 3.13 MaterialContracts...... 30 3.14 Litigation...... 31 3.15 DisclosureOfInterestsByDirectors...... 31 3.16 DisclosureOfInterestsByAdvisors...... 31 3.17 OtherDisclosures...... 31 3.18 DividendHistory...... 31 3.19 RiskFactors...... 32 3.20 ParentCompany...... 33 3.21 AdditionalInformation...... 34 3.22 DocumentsAvailableForInspection...... 34 3.23 HistoricalFinancialStatements...... 36 3.24 StatementOfAdjustments...... 77 3.25 Ratios...... 78

RenounceableRightsIssueOfferCircular PART4 – USEOFFUNDSANDBUSINESSOUTLOOK...... 79 4.1 Introduction...... 79 4.2 StandardCharteredBankGhanaLimited'sOverallStrategicObjectives...... 79 4.3 ExpectedUseOfFunds...... 79 PART5 – FINANCIALFORECASTS...... 80 5.1 ReportingAccountant'sReportOnForecasts...... 80 5.2 Assumptions...... 81 5.3 ConsolidatedFinancialProjections...... 84 PART6 – OVERVIEWOFTHEGHANASTOCKEXCHANGE...... 87 6.1 OverviewOfTheGhanaStockExchange...... 87 6.2 DevelopmentsAndTrends...... 87 6.3 PerformanceOfTheGse...... 87 6.4 Outlook...... 88 PART7 – ADDITIONALTERMSANDINFORMATIONONTHEOFFER...... 89 7.1 Application...... 89 7.2 OfferToPurchaseShares...... 90 7.3 AcceptanceOfTheOffer...... 91 7.4 PaymentForShares...... 91 7.5 Renunciation...... 91 7.6 ProcedureInRespectOfRightsNotTakenUpOrRenounced...... 91 7.7 Warranties...... 92 7.8 SupplyAndDisclosureOfInformation...... 92 7.9 ListingOfNewOrdinaryShares...... 92 7.10 IssuedShares...... 92 7.11 ImplicationsOfDematerialisedSecurities...... 92 7.12 ExchangeControls...... 93 7.13 RestrictionsOnOwnershipIn...... 93 7.14 Taxation...... 93 PART8 – RECEIVINGAGENTS'CONTACTDETAILS ...... 95 TABLEOFEXHIBITS

Exhibit1:UseofOfferProceeds...... 14 Exhibit2:OfferExpenses...... 18 Exhibit3:IndustryTotalAssets(GH¢'Million)Exhibit4:IndustryTotalLoans(GH¢'Million)...... 19 Exhibit5:IndustryTotalDeposits(GH¢'Million)...... 20 Exhibit6:SCBGLShareClassifications...... 22 Exhibit7:SCBGLPreferenceShareIssueHistory...... 23 Exhibit8:Top20OrdinaryShareholders...... 24 Exhibit9:Top20PreferenceShareholders...... 25 Exhibit10:SCBGLOrganisationalChart...... 26 Exhibit11:BoardofDirectorsofSCBGL...... 27 Exhibit12:SeniorManagementofSCBGL...... 28 Exhibit13:KeyManagementCommitteesofSCBGL...... 28 Exhibit14:RemunerationofDirectorsandOtherKeyManagementPersonnel...... 29 Exhibit15:OrdinaryShareDividendHistory...... 32 Exhibit16:PreferenceShareDividendHistory...... 32 Exhibit17:StandardCharteredBankHoldings(Africa)BV...... 33 Exhibit18:ParentCompanyStructure...... 34 Exhibit19:UseofOfferProceeds...... 79 Exhibit20:SummaryofGSEperformance...... 88 Exhibit21:StatisticalsummaryoftheGSE...... 88

StandardCharteredBankGhanaLimited Activity Date Time

Ex-RightsDate Friday30th October 2009 1.00pm

QualifyingDate Wednesday4th November2009 5.00pm

BooksClosureDate Thursday5th November2009 5.00pm

CommencementofOffer Tuesday10th November2009 9.00am

CommencementofTradingintheRights Tuesday10th November2009 9.00am

ClosureoftheTradingintheRights Wednesday25th November2009 1.00pm

DeadlineforAcceptanceofApplicationForms Tuesday1 st December2009 5.00pm

EndofOffer Tuesday1st December2009 5.00pm

AllotmentBegins Wednesday2nd December 9.00am

AllotmentEnds Monday7th December2009 5.00pm

ResultsoftheOfferSubmittedtoSEC Monday7th December2009 5.00pm

DistributionofLettersofEntitlementwhereapplicable Friday11th December2009 5.00pm

CreditingofSharesontotheGSD Friday11th December2009 5.00pm

CommencementofTradingintheSharesby Wednesday16th December2009 9.00am

AlldatesprovidedaresubjecttochangebyICSecurities,BELAandDeloitte&Touche(together,the “Advisors”)inconsultationwith theDirectorsofSCBGL(subjecttoobtainingthenecessaryregulatoryapprovals).AlltimesprovidedareinGreenwichMeanTime, thetimezoneoftheRepublicofGhana.Anyamendmentwillbepublishedinanationaldailynewspapernotlaterthan72hoursafter receiptofregulatoryapproval.

RenounceableRightsIssueOfferCircular Directors: IshmaelYamson(Chairman) HemenShah(ChiefExecutiveOfficer) SamuelDaisie SanjayR ughani FrancisMills -Robertson KwekuBedu -Addo FrederickWilliamLee HerbertA.Morrison FeliciaS.Gbesemete

RegisteredOffice: StandardCharteredBankBuilding HighStreet P.O.Box768

Auditors: KPMG CharteredAccountants MarlinHouse 13YiyiwaDrive P.O.BoxGP242 Accra

CompanySecretary: DawnKwesiZaney

Registrar: NTHCLimited MartcoHouse P.O.Box9563 Airport,Accra

StandardCharteredBankGhanaLimited SponsoringBroker: ICSecurities(Ghana)Limited 2,2ndRidgeLink,Nor thRidge PMBGP104,Accra Tel:+23321252621Fax:+23321252517 Contact:KwabenaOsei -Boateng Email: kwabena.osei [email protected]

LegalAdvisors: Bentsi -Enchill,Letsa&An komah 1stFloorTeachers’ Hall EducationLoop Adabraka,Accra Tel/Fax:+23321221171/229396/227187/226129 Contact:SethK.Asante;AngelaGyasi Email: [email protected] [email protected]

ReportingAccountants: Deloitte&Touche 4LiberationRoad P.O.BoxGP453,Accra Contact:AndrewOpuni -Ampong Email : [email protected]

Registrars: NTHCLimited MartcoHouse P.O.Box9563,Airport,Accra Tel:+23321229106/238492 Contact :HelenObeng Email: [email protected]

ReceivingAgent(s): ICSecurities(Ghana)Limited StandardCharteredBankGhanaLimited (Seepage 95 forfullcontactdetails)

RenounceableRightsIssueOfferCircular Thefollowingdefinitionsapplyinthisdocument,unlessthecontextrequiresotherwise:

“Advisors” ICSecurities(Ghana)Limited,Bentsi-Enchill,Letsa&Ankomah,andDeloitte &Touche

“Allotment” TheprocessofawardingsharestoQualifyingApplicantsbytheDirectorsof SCBGLandtheSponsoringBroker

“ApplicationForm” ApplicationformfortheOffer

“ATM” AutomatedTellerMachine

“BELA” Bentsi-Enchill,Letsa&Ankomah

“BoG” TheBankofGhana,orGhana’scentralbankandtheregulatorofthe bankingindustryinGhana.

“BooksClosureDate” Thedateandtime, 5th November 2009,setbytheIssuerforthelodgingof transfersfor thepurposeofdeterminingpersonsentitledtoRightsinthis Offer.

“Circular” Thisofferingcirculardated 28th October 2009

“Companies Act” TheGhanaCompaniesAct1963(Act179)

“Ex-RightsDate” Thedate, 30th October2009,afterwhichbuyersofSCBGLshareswillno longerbeentitledtoRightsintheOffer.

“GDP” GrossDomesticProduct

“Ghana” TheRepublicofGhana

“GH¢” GhanaianCedi

“GSE” or the “Exchange” TheGhanaStockExchange

“ICSecurities” ICSecurities(Ghana)Limited,whoisactingassponsoringbrokertoSCBGL forthisOffer

“IFRS” InternationalFinancialReportingStandards

“LettersofEntitlement” TheletterthatshallbedistributedtosuccessfulQualifyingAppl icantswho donothaveGSEsecuritiesdepositoryaccounts.Thelettershallstatehow manysharesthesuccessfulQualifyingApplicanthasbeenawardedthrough theAllotmentprocess

“NewShares” The 1,655,172 newordinarysharesofSCBGLtobeissuedpursuanttothe rightsissueandinaccordancewiththetermsoftheOffer

StandardCharteredBankGhanaLimited the “Offer” orthe “Issue” Theofferof 1,655,172 newsharesofSCBGLatapriceofGH¢ 29 tothe existingshareholdersinaratioof1 newordinaryshareforevery10.6309 ordinarysharesheldasattheQualifyingDate

“OfferPeriod” TheperiodcommencingonthedateofCommencementofOfferand endingonthedateofEndofOffer

“P/ERatio” Price/Earningsratio

“QualifyingDate” Thedate, 4th November 2009,onwhichpersonswhosenamesappearon theregisterofSCBGLmembersqualifyfortheRightsdeclaredunderthe termsofthisOffer

“QualifyingSCBGLShareholder” SCBGLshareholdersontheregisterofshareholdersasattheQualifying Date,andwhohavenolegalrestrictionstopartakinginthisOffer

“QualifyingApplicant” Anynaturalpersonwhois18yearsorover,oracorporation,partnershipor otherunincorporatedassociationswhoareresident/incorporatedinGhana orsomeotherstate,orcountry(andincludingaQualifyingSCBGL Shareholder)providedthattheoffertoandacceptancebysuchan applicantofthisOfferisnotincontraventionofthelawsofeitherthatstate orcountry.

“ReceivingAgent” or “Receiving ICSecuritiesandSCBGLwhowillbereceivingapplicationsandpayments Agents” fromanyQualifyingApplicantunderthisOffer.Fullcontactdetailsofthe ReceivingAgentscanbefoundonpage95 ofthisCircular.

“Registrars” NTHCLimited

“Renouncee” AQualifyingApplicant,inwhosefavouraQualifyingSCBGLShareholderhas renouncedhis/herRights.

“Renouncer” AQualifyingSCBGLShareholderwhohasrenouncedsomeorallofhis/her Rightsinfavourofanotherperson(s).

“ReportingAccountants” Deloitte&Touche

“Rights” ThelegalandfinancialrightofQualifyingSCBGLShareholderstopartakein thisOfferwhichmaybetradedtootherpersonsforvalue,inwhichcasethe rightistradedontheGSE,orwhichmayberenouncedinfavourofanother person(s).

“RoA” ReturnonAssets

“RoE” ReturnonEquity

“SCPLC” StandardCharteredPLC

“SCB” StandardCharteredBank

“SCBGL” orthe “Bank” StandardCharteredBankGhanaLimited

“SCBGLBoard” or “SCBGLBoard TheDirectorsofStandardCharteredBankGhanaLimited

RenounceableRightsIssueOfferCircular “SCBGLBoard” or “SCBGLBoard TheDirectorsofStandardCharteredBankGhanaLimited ofDirectors” orthe “Directors”

“SCBGLBranches” Allthe21branchesofSCBGLinGhana(forQualifyingApplicantsresidentin Ghana),whichwillbeactingasReceivingAgentsunderthisOffer

“StandardCharteredGroup” or StandardCharteredPLCanditssubsidiaries the “Group”

“SEC” SecuritiesandExchangeCommissionGhana

“SME” SmallandMedium-SizeEnterprises

“SMS” ShortMessageService.Acommunicationsserviceforsendingtext messagesonacellular telephonesystem

“SponsoringBroker” ICSecurities(Ghana)Limited

StandardCharteredBankGhanaLimited RenounceableRightsIssueOfferCircular StandardCharteredBankGhanaLimited RenounceableRightsIssueOfferCircular 1.1 LegalBasisfortheOffer OnTuesday28th April2009,theshareholdersofStandardCharteredBankGhanaLimited,atan AnnualGeneralMeetingoftheBank,metandpassedaresolutionauthorizingtheDirectorsofthe Bank “ toissueConvertible,Preferenceand/orOrdinarySharestoenabletheCompanytocomply withthenewminimumCapitalRequirementsoftheCentralBank”.

Onthebasisoftheaboveshareholders'resolution,theDirectorsoftheBankhavedecidedto undertakethisOffertoincreasetheBank'sstatedcapitaltocomplywithBankofGhana requirementsforaClass1bankinglicense(UniversalBanking)by31December2009.st

1.2 ReasonsfortheOffer TheIssuerisundertakingtheOfferinordertocomplywiththedirectivefromtheBankofGhanafor allforeignbankstoincreasetheirminimumstatedcapitaltoGH¢60millionby31December2009.'st

1.3 UseofFunds TheIssuerintendstousetheproceedsfromtheOffer: i. togrowitscorporatelendingportfolio;and ii. tosupporttheworkingcapitaloftheBankandavailitselfofappropriateopportunitiesinthe market.Thiswillabsorbthecapitalincreaseexpenses,providefundsforinvestmentsin

UseofFunds Estimated Amount (GH¢ ‘000) TradeLoansandContingents 35 ,000 InvestmentinLiquidAssets 12,000 OfferExpenses 1,000 Total 48,000 Exhibit 1:Useof OfferProceeds

1.4 KeyTermsoftheOffer

1.4.1 NumberofSharesandPrice

TheOffercomprisesarenounceablerightsissueof1,655,172newordinarysharesatGH¢29per sharetoQualifyingSCBGLShareholdersinaratioof1newshareforevery10.6309existingordinary sharesheld.ThesharestobeissuedunderthisOfferwillrankpari-passuwiththeordinarysharesof SCBGLalreadyinissueandlistedontheGSE.

1.4.2 FractionalShares

TheratioinwhichtheRightstoordinarysharesareallocatedtoQualifyingSCBGLShareholdersmay resultinfractionalentitlements.Fractionalentitlementsof0.5sharesandabovewillberoundedup toonenewshare,whilstthosebelow0.5shareswillnotbeallottedtoQualifyingSCBGL Shareholdersbutwillbeconsolidatedandaddedtoanyunsubscribedsharesthatmayarisefromthe Offer.ThedirectorsofSCBGLwillthereforeallottheconsolidatedsharesinthesamewayasthey allottheunsubscribedshares,asdescribedinclause1.7.

BankofGhana:NOTICENO.BG/GOV/SEC/2008/3

StandardCharteredBankGhanaLimited 1.4.3 PricingoftheShares

TheOfferispricedatGH¢29pershare,representinga3.4%discounttothe6-monthaveragemarket priceofSCBGL'sordinarysharesofGH¢30.03forthesix-monthperiodending30September,2009,th thelastpracticabledatebeforetheprintingofthisdocument.Ifallthesharesonofferarefully subscribed,SCBGLwouldraiseatotalofGH¢48million.

1.4.4 MinimumAmounttoRaiseUnderOffer

TheminimumamounttoberaisedfortheOffertobedeclaredsuccessfulisGH¢47million.

1.4.5 Oversubscription

ShouldtheBankreceiveapplicationsforshareswhosevalueisinexcessoftheGH¢48million,SCBGL wouldnotissueanyadditionalordinarysharestosatisfytheextrademand.

1.4.6 Dealings

TheGSEhasgrantedapprovaltolistupto1,655,172ordinarysharestobeissuedpursuanttothis OfferontheFirstOfficialListoftheGSE,alongsidetheexisting17,596,042ordinarySCBGLshares alreadylistedasat28th October2009.Itisexpectedthatdealingsinthenewordinaryshareswill startalongsidetheexistingsharesby16December2009.th

1.4.7 QualifyingDateandDistributionofthisCircular

ThesharesunderthisOfferwillbeofferedtotheshareholdersofSCBGLwhosenamesappearinthe registerofmembersasat4th November2009.TheRegistrarsoftheBankwillsendacopyofthis Circularcontainingtheallotmentletters,allotmentdetailsandApplicationFormsthroughthepost toSCBGLshareholdersonrecordasoftheQualifyingDate.SCBGLshareholderswhodonotreceive copiesoftheCircularby10th November2009maycontacttheofficesoftheRegistrars,Sponsoring BrokerortheReceivingAgentsforacopyoftheCircular.

1.4.8 FormoftheNewShares

Thenewshareswill,whenissued,becapableofbeingheldindematerialisedform.DuringtheOffer PeriodshareholderswhodonothaveaGSEsecuritiesdepositoryaccountcanusetheirallotment letterstoopenanaccountwiththeirstockbrokeroranyLicensedDealingMemberoftheGhana StockExchange.Theirsharescanthenbedepositedintheirrespectiveaccountsonceallotmenthas beencompleted.

AftertheOfferPeriodhasended,shareholderswhosuccessfullyexercisedtheirRightsbutdonot haveaGSEsecuritiesdepositoryaccountwillbeissuedLettersofEntitlement.TheseLettersof EntitlementcanbeusedtoopenGSEsecuritiesdepositoryaccountswithalicensedbrokerinGhana; thiswillenableshareholderstotradetheirsharesiftheywishtodoso.ShareholderswithGSE securitiesdepositoryaccountswillhavetheiraccountscreditedwiththenumberofsharesissuedto them.

Sharecertificateswillnotbeissued.

RenounceableRightsIssueOfferCircular 1.4.9 TradingintheRights

TheRightstothisOffermayonlybetradedontheGSEfrom10th Novemberto25 th November2009. ShareholderswhodesiretosellallorsomeoftheirRightsontheGSEshouldcontacttheirbroker,or theSponsoringBrokerat:

ICSecurities(Ghana)Limited, 2,2nd RidgeLink,NorthRidge, Accra Tel:+23321252621 Fax:+23321252517

1.5 Application AllapplicationsforsharesunderthisOffermustbeinwholenumbersandnopurportedapplication forfractionsofasharewillbeaccepted.

1.5.1 ShareholdersandRenouncees

Shareholderswishingtotake-upsomeoralloftheirRightsmustcompletetheappropriatesections oftheaccompanyingApplicationForminordertoexercisetheirRights.Shareholdersareallowedto applyforsharesinexcessoftheirRights(extrashares).ThiscanbedoneunderSectionAofthe ApplicationForm.

ShareholdersareallowedtorenounceinpartorinfulltheirRightsinfavourofathirdparty (Renouncee)attheirownoptionbycompletingSectionsAandBoftheApplicationForm. RenounceesshouldcompleteSectionCoftheApplicationFormandsubmitittogetherwithSections AandBcompletedbytheRenouncertotheReceivingAgents.

ShouldashareholderdesiretorenouncehisRightsinfavourofmorethanoneperson;heorshe shouldlistthenamesofthepersons,statingthenumberofsharesrenouncedinfavourofeach RenounceeinSectionBoftheApplicationForm.EachRenounceemustthencompleteacopyof SectionCoftheApplicationFormandsubmitsame,togetherwithpaymentforthesharesapplied for,totheReceivingAgents.

1.6 EscrowAccount

AllapplicationmoniescollectedwillbedepositedintoEscrowAccountnumber 011140015001 at StanbicBankGhanaLimited,HeadOfficeBranch.AcopyoftheEscrowAccountAgreementhasbeen lodgedwiththeSEC.Acopyisalsoavailableforinspection.

1.7 Allotment

TheallotmentplanfortheOfferwillbebasedonthefollowing: a. satisfactionofalldulycompletedapplicationsfromQualifyingSCBGLShareholdersandtheir RenouncesinrelationtotheRights;and

b. satisfaction,onaproratabasis,ofalldulycompletedapplicationsfromQualifyingSCBGL ShareholdersandRenounceesforanyunsubscribedshares.Providedhoweverthatif applicationsforunsubscribedsharesaregreaterthanthetotalnumberofunsubscribed sharesavailableundertheOffer,thedirectorsofSCBGLmay,onaproratabasis,allocate fewerextrasharesthanappliedforbyeachapplicant.

StandardCharteredBankGhanaLimited 1.8 Refund

Ifanyapplicationisnotacceptedorisacceptedforasmallernumberofsharesthanappliedfor,the balanceoftheamountpaidonapplicationwillbereturnedtoReceivingAgentsnotlaterthan8 th December2009foronwarddistributiontoapplicants.SCBGLwillannouncesuchrefundsthrougha nationaldailynewspaperwithwidecirculationwithin72hoursofthemakingofsuchrefunds.

IfSCBGLdoesnotrefundmoniestotheReceivingAgentsby8December2009thenSCBGLwillpayth toinvestors,interest(calculatedonaperannumbasis)ontheunpaidamountsfrom9th December 2009attheprevailingBankofGhanaprimerateforeachdayofdefaultuntiltherefundismadeto ReceivingAgents.

1.9 Payment

ForapplicantsresidentinGhana,paymentmaybemadebycash,cheque,postalormoneyorder, whichshouldbepresentedattheofficesofICSecurities(Ghana)LimitedoranySCBGLBranchwhere theApplicationFormislodged.Allcheques,postalormoneyordersshouldbecrossed SCBGL RIGHTSISSUEPROCEEDS andendorsed CommissiontoDrawer'sAccount.Thisendorsementmust besignedbythedrawer.Bankcommissionsandtransferchargesonapplicationmoniesmustbepaid bytheapplicant.Applications,inrespectofwhichchequesarereturnedunpaid,foranyreason whatsoever,orforwhichfundsdonotclearforthefullamountpayableontheapplicationby5pm on1December2009,maybetreatedasinvalid.st

ApplicantswhoarenotresidentsinGhanashouldremitfundsforthebenefitoftheSCBGLRights IssueProceedsbybanktransfertoSCBGLusingthetransferdetailsbelow:

Currency AccountNo. BankNameandAddress SwiftID BICCode InUSD 8766599211400 StandardCharteredBankGhanaLimited SCBLGHAC SCBLGHAC StandardCharteredBuilding InGBP 2866599211400 Accra InEURO 9366599211400

AnyapplicationfromapersonnotresidentinGhana,whichisnotreceivedinaformwhichwill realiseclearedfundsforthefullamountpayableontheapplicationby5pmon1December2009,st maybetreatedasinvalid.Bankcommissionsandtransferchargesonapplicationmoniesmustbe paidbytheapplicant.Applications,inrespectofwhichchequesarereturnedunpaid,foranyreason whatsoever,willberejected. 1.10 LodgementofCompletedApplicationForms AllQualifyingApplicantsresidentinGhanamustdeliverorlodgetheirdulycompletedApplication FormsattheofficesofanyofthenamedReceivingAgents,whosedetailsareprovidedonpage95of thisdocumentby5pmon1December2009.st QualifyingApplicantsnotresidentinGhanamustdeliverorlodgetheirdulycompletedApplication FormsbyscanningandemailingthemtotheSponsoringBroker.Theappropriateemailaddressfor theSponsoringBrokeris[email protected].TheoriginalcompletedApplication FormsshouldthenbemailedtoICSecuritiesthrougharegisteredmailservice. ApplicantswhochoosetomailtheirApplicationFormstotheReceivingAgent/sareadvisedtouse registeredmailservices.However,alldocumentsmailedtotheReceivingAgent/sbyapplicantswill beattheapplicant'sownrisk,andSCBGLmaytreatapplicationsnotreceivedby5pmon1 st December2009asinvalid.

RenounceableRightsIssueOfferCircular ApplicantsaretonotethatApplicationFormsmustbelodgedatthesamereceivingagentoffice wherepaymentismadeforthesharesappliedfor.TheReceivingAgentwillacknowledgereceiptof ApplicationFormsandfundsfromapplicants.

1.11 CostoftheOffer

ThetotalcostoftheOfferisnotanticipatedtoexceed3.00%oftheamountraised.SCBGLwillpayall feesoutoftheproceedsoftheOffer.Belowaretheestimatedsummariseddetailsofthecostofthe Offer:

Item Amount(GH¢) %ofOffer ProfessionalandAdvisoryFees (Legalduediligence,accountingdue 368,717 0.77% diligence,financialadvisory,managementadvisory,mediaadvisory,registrar, etc.) SuccessFees 237,833 0.50% RegulatoryFees(GSE,SEC,andRegistrarGeneral) 328,450 0.68% Mediapublicity,marketing,printing,logistics,VATetc. 65,000 0.14% TOTALESTIMATEDCOST 1,000,000 2.08% Exhibit2:OfferExpenses

1.12 OfferStatistics

KeydetailsoftheOfferare:

AuthorisedShares 100,000,000 IssuedShares 17,596,042 PriceperShare(GH¢) GH¢29 OrdinarySharesonoffer 1,655,172 ExpectedOutstandingSharesAfterOffer* 19,251,214 ExpectedProceedsfromtheOffer(GH¢) 48,000,000

StandardCharteredBankGhanaLimited 2.1 EconomicBackground Ghana'srealGDPgrowthaveraged6.3%between2004and2008,reachingagrowthrateof7.3%in 2008.Annualinflationforthesameperiodaveraged13.8%,downfrom22.4%between1999and 2003.

TheGH¢experiencedafallin2008,depreciatingagainsttheUSdollarbyabout30%fortheyearand 14%and7%inthefirstandsecondquarterof2009respectively.Thecountry'sfiscaldeficitjumped from9.2%ofGDPin2007to14.5%bytheendof2008.Asaresultofthepressuresfundingthedeficit andtheGH¢depreciation,annualinflationhasspikedtoaround20%currently.

However,theInternationalMonetaryFund(IMF)recentlyapproveda3-yearUSD602.6million arrangementunderthePovertyReductionandGrowthFacility(PRGF)tosupportGhana's macroeconomicpoliciesaimedattacklingeconomicinstability.Thegovernmentbelievesthatthis, inconjunctionwiththeBoG'sinflationtargetingregime,shouldensurethatby2011itwillhave reducedGhana'sfiscalimbalancesto4.5%,achievedaninflationtargetof7-9%peryear,gained internationalreservescoverageofabout3monthsandrecordedrealnon-oilGDPgrowthof5.5%.

2.2 TheBankingIndustry ThebankingindustryinGhanahasmovedfrombeingahighlygovernmentregulatedsectortoa marketorientedindustryinthelastdecadeandahalf,astheregulatoryandinstitutional frameworksoftheindustryhavebeenamended.TheBankingAct2004,(Act673)(the “Banking Act”)empowerstheBoGtostrengthenthebankingsystemthroughitspoliciestoensureefficiency, profitabilityandsupervision,amongotherthings,intheindustry.Thisisinpreparationtowardsthe implementationoftheBaselIIobjectives.

2.3 PerformanceoftheBankingSector Thebankingsectorhasexperiencedassetgrowthof236%from2003to2008,reachingatotalof GH¢10.7billionbytheendof2008.

Thesector'sassetsasaratioofGDPhaveincreasedsteadilyfrom33.2%in2000to65.6%in2008. ThoughcredittotheprivatesectorasapercentageofGDPhasalsoincreasedovertheperiod,from 19%to36.7%,thepercentageremainslowwhencomparedtootheremergingmarketswherethe ratioisusuallygreaterthan100%.TheperformanceoftheindustryishighlightedinExhibits3to Exhibit5:

Exhibit3:IndustryTotalAssets(GH¢'Million)2 Exhibit4:IndustryTotalLoans(GH¢'Million)3

2Source:BankofGhanaFinancialStabilityReport,BankingSurvey2009,ICSecuritiesResearch 3Source:BankofGhanaFinancialStabilityReport,BankingSurvey2009,ICSecuritiesResearch

RenounceableRightsIssueOfferCircular Exhibit5:IndustryTotalDeposits(GH¢'Million)4

2.4 RegulatoryDevelopmentsintheBankingSector TheBoGhastheoverallsupervisoryandregulatoryauthorityinallmattersrelatingtobanking businesswiththepurposeofensuringasound,efficientbankingsystemintheinterestofdepositors andothercustomersoftheseinstitutions,andtheeconomyasawhole.

ThefunctionsandresponsibilitiesoftheBoGareasfollows: ? ensurethesoundnessandstabilityofthefinancialsysteminthecountry; ? dealwithanyunlawfulorimproperpracticesofbanks; ? promoteaneffectivebankingsystem; ? regulate,superviseanddirectthebankingandcreditsystemstoensurethesmooth operationofasafeandsoundbankingsystem;and ? considerandproposereformsofthelawsrelatingtobankingbusiness.

TheBoGalsoregulatesandlicensesinstitutionsundertakingbankingoperationsandaspartofits regularactivities,examinestheoperationsofbanksatleastonceayear,toensurecompliancewith statutoryrequirementssuchascapitaladequacy,solvency,assetqualityandsoundmanagement practices.TheBoGfromtimetotimeissuesdirectivestoregulatetheindustry.Thesetypicallycover: ? Minimumcapitalrequirements; ? Minimumcapitaladequacyratiostoensurecompliancewithinternationalbestpractices; ? Primaryreserveratios;and ? Secondaryreserveratios.

Thekeylawsregulatingthebankingindustryare: ? TheCompaniesAct1963(Act179)asamended,whichgovernstheoperationsofall companiesinGhana; ? TheBankofGhanaAct,2002(Act612); ? TheBankingActasamendedbytheBanking(Amendment)Act2007,(Act738); ? TheForeignExchangeAct,2006(Act723); ? TheCreditReportingAct,2007(Act726); ? TheBorrowersandLendersAct,2008(Act773)(the “BorrowersandLendersAct”);and ? TheAnti-MoneyLaunderingAct,2008(Act749)(the “Anti-moneyLaunderingAct”).

2.5 MarketDevelopments Thedevelopmentofthebankingindustryhasseentheindustrygothroughmanystructuraland operationalchangesastheBoGaimstoensurestabilityintheindustryandstimulatefurthergrowth anddevelopment.Someofthenotablechangesinthesectorinclude: ? eZwich; ? Re-denomination;

4Source:BankofGhanaFinancialStabilityReport,BankingSurvey2009,ICSecuritiesResearch

StandardCharteredBankGhanaLimited ? Thenationalpaymentsystemreform; ? Theabolishmentofthesecondaryreserverequirement; ? Theincreaseintheminimumstatedcapitalforuniversalbanking;and ? Newlegislationsandregulationswhichare: ? TheBorrowersandLendersAct; ? TheAnti-MoneyLaunderingAct; ? TheNon-BankFinancialInstitutionAct,2008(Act774);and ? TheHomeMortgageFinanceAct,2008(Act770).

TheBorrowersandLendersActisintendedtoreduceinformationasymmetryandadverseselection withinthecreditmarketwhileimprovingtheassetportfoliooftheindustryandfacilitatingthe reductionoflendingrates.TheAnti-MoneyLaunderingActisintendedtoprovidealegalregimefor checkingmoneylaunderinginaccordancewithinternationallegalrequirementsandbestpractice. TheNon-BankFinancialInstitutionAct,2008(Act774)providesanewlegalregimeforregulating non-bankfinancialinstitutionsandtheHomeMortgageFinanceAct,2008(Act770)isintendedto regulatehomemortgagefinancingwithemphasisonmodernisingtheenforcementoptions availabletomortgagelenders.Theeffectoftheserecentdevelopmentshasbeentomodernizeand liberalizetheindustry,whileensuringadequateaccesstocreditandrelevantprotectionareinplace forallstakeholders.

RenounceableRightsIssueOfferCircular 3.1 HistoryandBackground SCBGLhasbeeninoperationsince1896,whenitwasknownastheBankofBritishWestAfrica.After Ghana'sindependence,theBank'snamewaschangedtoBankofWestAfricaLimitedandupona mergerwithTheStandardBankin1969,thenamewaschangedtoStandardBankofWestAfrica Limited.TheBankwasregisteredasalimitedliabilitycompanyinGhanaon18September1970 undertheCompaniesAct,withregistrationnumber4576.TheBank,thenknownasTheGhanaLimitedbecameamemberoftheStandardCharteredGroup(the “Group”)aftera mergerbetweenTheStandardBankandTheCharteredBank.TheStandardCharteredBankGhana Limitednamewasadoptedin1985aspartoftheGroup'sefforttoachieveacommonidentity worldwide.Asat31July2009,SCBGLwas68.11%ownedbyStandardCharteredHoldings(Africa)BV, incorporatedintheNetherlands,whichinturnisultimately100%ownedbyStandardChartered Bank.

SCBGLprovidesawiderangeofservicesintheconsumerandcorporateandinstitutionalbanking sectors,includingcomprehensivetradefinance,cashmanagementservicesandforeignexchange productsthroughitstreasuryoperations.TheBankoperatesthrough21branchesand2agencies locatedinthemainregionsofGhanaandemploysover700permanentstaff.Alloperatingbranches arefullycomputerizedandnetworked,withATMsatallbranches.

3.2 CapitalStructure AsatthedateofthisCircularSCBGLhasordinaryandpreferenceshareslistedontheGhanaStock Exchange.Theordinaryandpreferenceshareshavedifferentrightsattachedtothem.TheBank's preferencesharesareirredeemableandnon-cumulativewithrespecttodividendpayments.Exhibit 6summarisestheshareclassificationsofSCBGL:

Proceeds ShareClass Issued (GHC'000) AttachedRights DividendPolicy Ordinary 17,596,042 4,041 Rightsoftheholdersofordinarysharesinclude interalia: Pay100%ofcurrent Shares ? therighttovoteatallgeneral meetings; yearprofitslessany ? therighttoelectSCBGLBoardofDirectors, statutorydeductions and andpreferenceshare ? Therightto voteonamendmentstoSCBGL’s dividend Regulations.

Preference 17,486,083 9,090 Holdersof preferenceshareswillonlybeentitledtovote 182-daytreasury-bill Shares atgeneralmeetingsoftheIssuerwhere: rateplus300basis ? therightsofholdersofthePreferenceShares pointsriskpremium maybevariedorabrogated; semi-annually. ? aresolutionistabledfortheremovalor replacementoftheauditorsoftheIssuer,or theappointmentofanotherinplaceofsuch auditors; ? aresolutionisbroughtforwardforthe winding-upoftheIssuer;and ? themostrecentlypayabledividendonthe preferenceshareshasnotbeenpaidinfull Exhibit6:SCBGLShareClassifications

StandardCharteredBankGhanaLimited 3.3 ShareIssueHistory Inthelastfivefinancialyears,theBankmadeoneissueof17,486,083preferencesharesandno ordinaryshareshavebeenissuedduringtheperiod.Exhibit7summarisesSCBGL'spreferenceshare issuehistory:

FinancialYear Description SharesIssued Proceeds(GHC'000) 2005 PreferenceShares 17,486,083 9,090 Source:StandardCharteredBankGhanaLimited Exhibit7:SCBGLPreferenceShareIssueHistory

3.4 Services,ProductsandKeyBusinessActivities SCBGL'scoreservicesrevolvearoundwholesaleandconsumer(retail)bankingservicestoitsclient baseintheRepublicofGhana.

ConsumerBanking: SCBGLoffersawiderangeofpersonalbankingproductsandservicesnationwidethroughallofits21 branches,6excelcentres,2agenciesandalternatechannelssuchasATMs,callcentres,andSMS banking.SCBGListheonlybankwhichhas2SMEcentresinthecountry.SCBGL'sservicesarebacked byastrongcommitmenttoprovidingitscustomerswitheffectiveandreliablebankingservices.

ConsumerBankingproductsandservicesinclude: ? ExcelBankingserviceswhicharetailoredforcustomersseekingpersonalisedand convenientbanking; ? ATMandVisadebitcards,allowing24hraccesstofundsintheaccountfromGhanaand abroad; ? Arangeofsavingsanddepositaccountswithlinkedoverdraftfacility; ? Wealthmanagementservices(Customisedandpersonalisedbankingservicesprovidedto highnetworthindividuals); ? Residentialmortgages; ? Unsecuredpersonalloans; ? Autoloans; ? SMEbanking;and ? TransactionalBanking.

WholesaleBanking SCBGLoffersitscorporateandinstitutionalclientscomprehensivebankingsolutionswithparticular emphasisonrelationshipbanking.Corporateclientsbenefitfromafullrangeofflexiblefinancial propositionsthataddressindividualneedsaswellashavingaccesstotraditionalandstructured productsintheareasoflending,tradefinance,cashmanagementandtreasury.Customersalsohave accesstocross-borderpayments,treasuryservices,transactionbankingandcustodialservices-all supportedbyelectronicfundstransferandcashmanagementsystems.

TheBankisanauthorisedForeignExchangeDealerofthecentralbankofGhana.Productsoffered include:

? Lendingandtradefinanceproducts; ? Structuredtradefinancefacilities; ? Integratedcashmanagementsolutions(collections,paymentsandliquiditymanagement); ? Treasuryproducts – foreignexchangedealingonspotandforwardbasis,structuredyield enhancementproducts(e.g.,highyielddeposit),andmoneymarketinvestments; ? Derivativeandhedgingproducts-Interestrateswapsandcrosscurrencyswaps;and ? DebtCapitalMarkets – capitalraisingviaissuanceoffixedincomesecuritiesandsyndicated loans.

RenounceableRightsIssueOfferCircular SCBGL'sproductsandservicesaredistributedtocustomersprimarilythroughitsretailbranch networkandcorporateofficesthroughoutthecountry.TheBankalsoemploysasalesforcemadeup of “RelationshipManagers” (targetedatthecorporatesegment)and “SalesExecutives” (cateringfor theretailmarket).Theprimarydeliverychannelsarealsosupportedbyotherelectronicand automateddeliverychannels,whichincludeATMs,telephonebanking,electronicbankingand internetbanking. 3.5 Top20Shareholders Exhibit8andExhibit9highlightthetopshareholdersofSCBGLinitsrespectiveshareclassesasat31st July2009:

NameofShareholder No.SharesHeld Holding 1 StandardCharteredHoldings(Africa)BV 11,984,839 68.11% 2 SocialSecurityand NationalInsuranceTrust 2,523,708 14.34% 3 BBGN/StatestreetBankX71AX71 341,023 1.94% 4 BBGN/RBCDexiaInvestorServicesTrust 165,000 0.94% 5 BBGN/reEPACKInvestmentFundLimited 92,868 0.53% 6 GhanaUnionAssuranceCo.Limited 66,234 0.38% 7 TeachersFund 64,165 0.36% 8 CouncilforUniversityofGhana.Endowment 60,390 0.34% 9 BBGN/UnileverGhanaManagersPensionFund 48,712 0.28% 10 BBGNOM/UnileverGhanaProvidentFund 34,672 0.20% 11 SSNITSOSFund 30,268 0.17% 12 EstateofFrancisK Poku 28,710 0.16% 13 DMVentures 27,100 0.15% 14 BBGN/BarclaysMauritiusReDeutAfricaOpportunitiesFund 25,000 0.14% 15 UniversityofScience&Technology 24,750 0.14% 16 BBGN/SSBEatonVanceTax -Managed.EmergingMarketsFund 24,400 0.14% 17 EnterpriseInsuranceCo.Limited 22,165 0.13% 18 GovernmentofGhana 21,102 0.12% 19 BBGN/UnileverGhanaProvidentFund 19,263 0.11% 20 BBGN/BarclaysMauritiusReDeutVictoireAfricaIndexII 17,896 0.10% TotalTop20Holding 15,622,265 88.78% Others 1,973,777 11.22% Exhibit8:Top20OrdinaryShareholders

StandardCharteredBankGhanaLimited NameofShareholder No.SharesHeld Holding 1 StandardCharteredBankHoldings(Africa)BV 15220598 87.04% 2 BBGN/StatestreetBankX71AX71 329585 1.88% 3 SSNITSOSFund 307692 1.76% 4 EdwardKAmomaAnim-Addo 106806 0.61% 5 GhanaUnionAssuranceCo.Ltd 99351 0.57% 6 NorbertKwasiviKudjawu 68775 0.39% 7 OpheliaF.Akosa -Bempah 54150 0.31% 8 KwakuAkosah-Bempah 40654 0.23% 9 MSLPortfolio 29654 0.17% 10 BartonKweku GlyminJnr. 27000 0.15% 11 CliffordAryee 25000 0.14% 12 EbenezerMagnusBoye 25000 0.14% 13 EdmundAkoto-Bamfo 22401 0.13% 14 AnthonyMinkah 20268 0.12% 15 EdemYankson 20000 0.11% 16 JohnPerceivalAwukuNyako 20000 0.11% 17 KwakyeSafo 20000 0.11% 18 SIC - GeneralBusiness 19231 0.11% 19 SIC - ProvidentFund 19231 0.11% 20 SIC - LifeBusiness 19231 0.11% TotalTop20Holding 16494627 94.33% Others 991456 5.67% Exhibit9:Top20PreferenceShareholders

3.6 CorporateGovernanceStructures SCBGL'sboardhasanestablishedframeworktomanageriskandcontrolbusinessandfinancial activitiestodelivergrowthwhilstcontrollingrisk.

TheGroup'scodeofconductensuresthatbusinessiscarriedoutinalawfulandethicalway,inline withtheGroup'sfivecorevalues-responsive,trustworthy,creative,internationalandcourageous. Everyemployeeisexpectedtodemonstratethesestandardsofintegrityandfairdealingtowards ourcustomers,regulators,thecommunitiesinwhichtheGroupoperates,andoneanother.

RenounceableRightsIssueOfferCircular Exhibit10:SCBGLOrganisationalChart

3.7 TheBoardofDirectors SCBGL'sBoardofDirectorsiscomposedofexecutiveandnon-executivedirectors,providingforan extendedskillbaseandultimately,agoodbalanceofsupportandchallengetotheBank'ssenior managementteam.TheSCBGLBoardisresponsibleforensuringthatproperstandardsofcorporate governancearemaintainedandisaccountabletoshareholders.

Title Name Age Educational Other PeriodServed Nationality Qualification Directorship

Chairman Ishmael 67 BScEconomics UnileverGhana 4years,5 months Ghanaian Yamson Ltd,Mantrac GhanaLtd, BensoOilPalm Plantation and Nigerian Breweries Managing Hemen 47 B.A.Harvard, SCBCote 8months American Director Shah MBAStanford d’Ivoire,SCB BusinessSchool Gambia,SCB SierraLeone, SCB Executive Sanjay 39 QualifiedCPA, Lincoln 2Years,6 Tanzanian Director, Rughani MBA(Finance) Community months Finance School

StandardCharteredBankGhanaLimited Title Name Age Educational Other PeriodServed Nationality Qualification Directorship

Executive Francis 47 B.A.Social N/A 1Year,7 Ghanaian Director, Mills - Sciences Months Consumer Robertson Banking

Executive Kweku 42 BScAgric. N/A 5Months Ghanaian Director, Bedu -Addo Economics,MA, Origination International &Client Affairs Coverage Non Frederick 53 Harvard N/A 5Months British Executive WilliamLee BusinessSchool Director (Management Program) Non Herbert 67 FCCA,CA,MGIT Canadian 2Months Ghanaian Executive Morrison Chamberof Director Commerce Ghana Non Samuel 68 BScEconomics N/A 19Years Ghanaian Executive Daisie Postgraduate Director Diplomain Economics (Glasgow) Non Felicia 62 LLBHons Lexconsult& 2months Ghanaian Executive Gbesemete Company Director Mariconsult Limited Exhibit11:BoardofDirectorsofSCBGL

3.8 HumanResourcesandSeniorManagement TheBankhastrainingprogramsforitsworkforceof752permanentemployeesand213temporary staffasat31July2009.Themembersofthemanagementteamhaveanaverageof10yearsst experiencewiththeStandardCharteredGroup.Exhibit12providesdetailsoftheBank's managementteamandtheircorerolesandresponsibilities:

Name Position/Nameof Numberof RolesandResponsibilities Department Yearswith SCB HemenShah CEO 7years ProvidesleadershipfortheGroupinGhanathrough developingoverallstrategy anddirection.Healsohas oversightresponsibilitiesforSCB’spresenceinWestand CentralAfrica(“WACA”) SanjayRughani ExecutiveDirector, 10years HeistheChiefFinancialOfficerforSCBGL,withoversight Finance responsibilitiesforWACA FrancisMills – ExecutiveDirector, 11years HeadstheCBdivisionofSCBGLandisresponsiblefor Robertson Consumer takingmajorpolicydecisionsaffectingthedivision Banking(“CB”) KwekuBedu-Addo ExecutiveDirector, 9years HeadstheO&CCdivisionoftheBankandisresponsible Origination&Client fortheBank’scorporaterelationshipsinGhanaand Coverage (“O&CC”) WACA MayokunAjibade Head,GlobalMarkets 7years Responsibleforthetreasurybusinesswhichincludes marketing,deliveryand managementoftreasury productsinGhanaandWACA EmmanuelMayaki ChiefInformation 3years Responsibleforoveralltechnologyoperationalissues Officer HarryDankyi CountryOperational 7years ProvidesassuranceoninternalpoliciesandRegulations RiskAssurance Manager LucyKimani HeadHuman 21years Providesoversightforthehumanresourcesfunctionin Resources Ghana

RenounceableRightsIssueOfferCircular Name Position/Nameof Numberof RolesandResponsibilities Department Yearswith SCB NiiOkaiNunoo HeadCorporateAffairs 3years ResponsibleforpublicrelationsissuesinGhanaand WACA BubaJanneh CountryChiefRisk 15years ProvidesoversightfortheBank’soverallriskissuesin OfficerandHeadof GhanaandWACA GSAM DawnZaney HeadofLegaland 16years ResponsibleforadvisingtheBankonalllegalmatters CompanySecretary affectingtheoperationoftheBankinGhanaaswellas providingcompanysecretarialservices.Alsohas oversightresponsibilitiesforSCBinWACA NanaAbban Head,CBOperations 10years DirectmanagementofConsumer Bankingoperationsin SharedServiceCentre Africahubsandoversightofteamsprovidingoperations Africa andtechnologysupportinWACA Exhibit12:SeniorManagementofSCBGL 3.9 KeyManagementCommittees ThereareninecommitteesatSCBGL.ThemainroleofthecommitteesistoassisttheSCBGLBoardof DirectorsinprovidingcorporategovernanceattheBank.Detailsofeachcommitteearelistedin Exhibit13.

Nameof MembersofCommittee RolesandResponsibilities Committee

Management The ChiefExecutiveOffice(“CEO”), Toprovideunifiedleadershipinthecountry, Committee Headsofbusinesses specificallybydeterminingpoliciesintheareasof ExecutiveDirectorFinance,HeadsofHuman financialmanagement,customerandfranchise resources,Legal,CorporateAffairs,Operational management,corporategovernance,peopleand Risk,TechnologyandOperationsandShared talent ServiceCentre AuditandRisk Thefournon-executivedirectorsontheboard Toactastheauditandriskcommitteeasrequired Committee oflocallylistedcompanies CreditApproval CEO, Toreviewandapprovecredit applicationsforWB, Committee ExecutiveDirectorsforO&CC,CBandFinance. CBandGroupSpecialAssetsManagement SeniorcreditofficersforWholesaleBanking(“WB”) (“GSAM”)uptothemaximumlevelpermitted. andCB Assetand CEO, Toensurethatthecountrybalancesheetis Liability ExecutiveDirectorFinance,HeadofGlobal managedinaccordancewithGroupstandardsand Committee Markets,andHeadsofbusinesses otherapplicableregulatoryrequirements EarlyAlert ExecutiveDirectorO&CC,SeniorCreditOfficer,CEO, Tomonitorcreditqualitythroughmonthlyreview Committee SeniorManagersofO&CC,HeadofGSAM,Credit reportssubmittedonearlyalertaccounts. RiskControlrepresentative.Byinvitation – Headof Legal GSAM HeadofGSAM,HeadofO&CC,SeniorCreditOfficer, Toreviewandmonitorstrategiesandactions Committee SeniorAccountManagersGSAMand Account beingtakenonaccountswithintheGSAM ManagersGSAM portfolio. Country CEO,Headsofbusinesses,ExecutiveDirector Toprovideaforumforthediscussionand Operational Finance,HeadofLegal,ChiefInformationOfficer, managementofallaspectsofoperationalrisks RiskGroup CORAM,HeadofHumanResourcesandHeadof andcontrollapsesidentifiedthroughtherisk FinancialCrimeRisk reportingprocedure. Portfolio CEO,Headsofbusinesses,SeniorCreditOfficerWB Toreviewanddirect,asappropriate,the Review andCB,HeadofGSAMandBankEconomist. managementofthecreditportfoliointheCountry Committee toensurethatthesystemsandcontrolsarein placeandareoperatingeffectivelysuch that earningsfromtheportfoliomeetexpectations. ProvidentFund HeadHumanResources,ExecutiveDirectorFinance Todefinestaffretirements/leavingbenefit Committee andCEO policiesandtoensurethattheBank’sobligation inrespectofretirement benefitsaremet. Exhibit13:KeyManagementCommitteesofSCBGL

StandardCharteredBankGhanaLimited 3.10 CompensationSchemes SCBGLoperatesanumberofsharebasedpaymentschemesforitsdirectorsandemployees. 2001PerformanceSharePlan(2001PSP) ThePerformanceSharePlanisdesignedtobeanintrinsicpartoftotalremunerationfortheGroup's executivedirectorsandforasmallnumberoftheGroup'smostseniorexecutives.Itisan internationallycompetitivelong-termincentiveplanthatfocusesexecutivesonmeetingand exceedingthelongtermperformancetargetsoftheGroup.Beforeanyawardcanbeexercised underthe2001PSP,certainperformanceconditionsneedtobemet.Theperformanceconditions aresetatthetimeofaward. 2006RestrictedShareScheme(2006RSS)/2007SupplementaryRestrictedShareScheme(2007 SRSS) TheRestrictedShareSchemeisusedasavehiclefordeferringpartoftheannualperformance awardsforcertainemployeesandasanincentiveplantomotivateandretainhighperformingstaff atanyleveloftheorganization.Inaddition,theGroupoperatesaSupplementaryRestrictedShare Schemewhichcanbealsobeusedtodeferpartofanemployee'sannualperformanceawardin shares. 2004DeferredBonusPlan(2004DBP) UndertheDeferredBonusPlan,sharesareconditionallyawardedinsteadofallorpartofthe executivedirectors'andcertainseniorexecutives'annualperformanceaward. 2000ExecutiveShareOptionScheme(2000ESOS) TheExecutiveShareOptionSchemeisdesignedtobeinternationallycompetitiveandfocus executivedirectorsandtheirsseniormanagementteamsondeliveringlong-termperformance.An earningspershareperformancecriterionmustbemetbeforeoptionscanbeexercised.Itis proposednofurtherawardswillbemadeunderthe2000ESOS.However,theschemewillbe retainedforuseinexceptionalcircumstancesorifthereisasubsequentchangeinpolicyinresponse tofuturemarkettrends. InternationalandUKSharesaveSchemes TheGroupbelievesinencouragingemployeeshareownershipatalllevelsintheorganization.By operatingtheSharesaveschemesitseekstoengageemployeesintheGroup'sperformance,align theirinterestsmorecloselywiththoseofshareholdersandofferthemanopportunityforlong-term savingsandashareintheGroup'sfinancialsuccessthattheyhelptocreate. RemunerationofDirectorsandOtherKeymanagementPersonnel AllNon-ExecutiveDirectorsareentitledtoasittingallowanceof£500andaquarterlyfeeof£1,250 perDirector.TheBoardChairmanisentitledtoaquarterlyfeeof£4,800.Theremunerationof directorsandotherkeymanagementpersonnelasatDecember31,2008wasaboutGH¢8.854 millionasshowedinExhibit14: Item 2008(GH¢ ‘000) 2007(GH¢ ‘000)

Salariesandshort-termbenefits 8,528 5,971

Employersocialsecurity 326 263

TOTAL 8,854 6,234 Exhibit14:RemunerationofDirectorsandOtherKeyManagementPersonnel

3.11 InformationandCommunicationTechnology(“ICT”) Acrosstheglobalbankingindustry,thekeyICTthemesaredatacentreconsolidation,improved security,betterservicedeliverychannelsforcustomersandreductionintelecommunicationsand productdistributioncosts.SCBGLcontinuesitseffortstoensurethatitstaysaheadofchangesinthe industry.

RenounceableRightsIssueOfferCircular ImprovementsinSCBGL'stechnologyplatformshaveunderpinnedmuchoftheBank'sabilityto grow.AStandardCharteredBankRegional(WestAfrica)SharedServiceCentreinGhana(Accra)has helpedtodevelopscaleandgreaterefficiencies.Theimprovedeconomiesofscaleandtighter controlshavetranslatedintoimprovedtechnologysupportcosts. 3.12 SubsidiariesandAssociateCompanies StandardCharteredGhanaInvestmentServices(“SCGIS”)isawhollyownedsubsidiaryofSCBGL.The subsidiaryreceiveditsCertificateofIncorporationandCertificatetoCommerceBusinessin November2005.HoweverSCGIShasnottransactedanybusinesssinceitsinception,andiscurrently dormant,thereforedoesnotcontributetoSCBGL'sfinancialperformance. 3.13 MaterialContracts AllcontractsthatSCBGLhasenteredintoarethoserelatedtothenormalcourseofbusiness.The followingarematerialcontractsenteredintobytheBankinthetwo-yearperiodprecedingthis Circular:

(a) Strategic Brand Management Limited Licence Agreement dated December 23,2008.

BythisagreementSCBGLislicensedtouseStandardCharteredStrategicBrandManagement Limited'sMasterbrandIntellectualPropertyforitsbankingbusiness.Undertheagreement, SCBGLpaysagreedyearlyroyaltiesfortheuseoftheMasterbrandIntellectualProperty.

Theeffectivedateoftheagreementis1January,2008andcontinuestillterminatedbyeitherst partyinaccordancewiththetermsoftheagreement.

(b) BusinessServicesAgreementwithStandardCharteredBank(Singapore)(“SCBSingapore”) dated15th December,2008

Underthisagreement,SCBSingaporeprovidesthefollowingservicestoSCBGLinrespectof itswholesalebankingservices:

(i) ProductProcessing:transactionandbusinessprocessing,custodialoperations, creditcontrol,capitalmarketoperations,derivativeoperations;

(ii) SalesandMarketing:salesandservice,marketing,marketresearchandproduct developmentservices,transactionbankingandglobalmarkets; (iii) DirectControlledBusinessSupportServices:wholesalebankspecificbusiness supportservicesincludingbusinessfinance,clientrelationship,productcontrol, market risk, credit risk, human resources, learning, wholesale bank risk management,informationmanagement,legalandcompliance;and

(iv) OtheradditionalservicesthatmayberequiredbySCBGL.

Theagreementiseffectivefrom1January,2008andcontinuesuntilterminatedbythest partiesinaccordancewithitsterms. TheagreementisgovernedbytheLawsofEnglandand Walesandthepartiesagreetosubmittothenon-exclusivejurisdictionoftheEnglishCourts.

(c) International Representation Agreement with Western Union Network (France) SAS (“WesternUnion”)dated27th March,2009

ThisagreementauthorizesSCBGLtoprovideWesternUnionmoneytransferservicesinGhana. Theinitialtermoftheagreementisforaperiodofthree(3)yearsandsubsequentlyfor successiveone-yeartermsuntilterminatedbyeitherpartyinaccordancewiththetermsofthe agreement.

StandardCharteredBankGhanaLimited ThelawsofEnglandandWalesgoverntheagreementandalldisputesundertheagreementare tobesettledinaccordancewiththerulesoftheInternationalChamberofCommerce.

3.14 Litigation TheIssuer(whetherasdefendantorotherwise)isnotengagedinanygovernmental,legal, arbitration,orotherproceedings,theresultsofwhichmighthaveorhavehadduringthe24months priortothedateofthisCircularamaterialeffectonthefinancialposition,profitabilityorthe operationsoftheIssuer,norisitawareofanysuchproceedingsbeingthreatenedorpending.

3.15 DisclosureofInterestsbyDirectors Mr.IshmaelYamsonasatthedateofthisCircularheld2,000SCBGLshares.

3.16 DisclosureofInterestsbyAdvisors AsatthedateofthisCircular: i. ICSecuritiesdidnotholdanySCBGLshares.Noemployeeoranyofitsassociatedpersons heldorhadinterestinanySCBGLshares;

ii. BELAasanentitydidnotholdanySCBGLshares;and

iii. Deloitte&ToucheasanentitydidnotholdanySCBGLshares. 3.17 OtherDisclosures i. RelationshipsAmongDirectors – TherearenofamilyrelationshipsamongtheDirectors.

ii. BankruptcyPetitions – NopetitionunderanybankruptcylawhasbeenfiledagainstanyDirector, oranypartnershipsofwhichsuchpersonswerepartners,orofanycompanyinwhichsuch personsareorweredirectors.

iii. CriminalProceedingsorConvictionsforFraudorDishonesty – NopersonwhoisaDirectororhas beennominatedtobecomeaDirectorhasbeenconvictedinacriminalproceedingorisanamed subjectofanypendingcriminalproceedingrelatingtoanoffenceinvolvingfraudordishonesty.

iv. ProhibitionagainstFinancialAdvisoryorCapacitytoHoldOffice – NopersonwhoisaDirectoror hasbeennominatedtobecomeaDirectorhasbeensubjectofanyjudgementorrulingofany courtofcompetentjurisdiction,tribunalorgovernmentbodypermanentlyortemporarily enjoininghimfromactingasaninvestmentadvisor,dealerinsecurities,Directororemployeeof acorporatebodyorengaginginanytypeofbusinesspracticeoractivityorprofession.

v. DirectorsPowerstoBorrowandChargetheBank'sAssets – Subjecttotheprovisionsofsection 202(5)oftheCompaniesAct,theDirectorsmayexerciseallthepowersoftheBanktoborrow moneyandtomortgageorchargeitspropertyandundertakingoranypartthereof,andtoissue debentures.SuchpowerscanbevariedbyamendingtheBank'sregulations. 3.18 DividendHistory SCBGLhasconsistentlypaiddividendstoitsordinaryshareholdersoverthelastfiveyears.SCBGLhas oneofthehighestdividendpayoutratesamonglistedcompaniesinGhana.Thetotaldividendpaid increasedfromaroundGH¢16.8millionin2004toapproximatelyGH¢26.4millionin2008, representingapercentageincreaseof56%andaveragedividendpayoutrateof81%overtheperiod.

Sincetheissuanceofitspreferenceshares,theBankhaspaidanon-cumulativedividendsemi- annuallytopreferenceshareholdersatareferencerateof300basispoints(3%)abovetheprevailing 182-dayGovernmentofGhanaTreasuryBillrate.

RenounceableRightsIssueOfferCircular A5-yearhistoryofdividendspaidtoordinaryshareholdersisshowninExhibit15.

OrdinaryShares Year 2004 2005 2006 2007 2008 NumberofShares 17,596,042 17,596,042 17,596,042 17,596,042 17,596,042

DividendPaid(GH¢) 16,846,451 20,235,448 22,874,855 25,514,261 26,394,063 DividendPerShare(GH¢) 0.96 1.15 1.30 1.45 1.50 Payout Ratio 87% 87% 74% 77% 80% Source:StandardCharteredBankGhanaLimited Exhibit15:OrdinaryShareDividendHistory

A3-yearhistoryofsemi-annualdividendspaidtopreferenceshareholdersisshowninExhibit16.

Preference Shares Date 29-Mar-06 29-Sep-06 29-Mar-07 29-Sep-07 29-Mar-08 29-Sep-08 29-Mar-09

NumberofShares 17,486,083 17,486,083 17,486,083 17,486,083 17,486,083 17,486,083 17,486,083

DividendPaid(GH¢) 410,136 640,970 624,498 613,762 599,773 655728.12 1,313,205

DividendPerShare(GH¢) 0.0235 0.0367 0.0357 0.0351 0.0343 0.0375 0.0751 Source:StandardCharteredBankGhanaLimited Exhibit16:PreferenceShareDividendHistory 3.19 RiskFactors Investinginthesecuritiesofanyentityentailssomeinvestmentrisks.Inconsideringthepurchaseof SCBGLordinaryshares,prospectiveinvestorsshouldcarefullyconsiderthefollowingpotentialrisks, includinganyrelevantinformationcontainedinthisCircular:

Political PotentialpoliticalunrestisarisktotheoperationsofanybankoperatinginGhanaincludingSCBGLas itcouldadverselyimpactthedemandforcredit.However,Ghanahassuccessfullyconducted peacefulelectionssincethebeginningofthefourthRepublicin1992andjustendedpeacefulpolls forthefifthtimeunderthefourthRepublicinJanuary2009.Thedemocraticprocessprevailinginthe countryandthesupportfromtheinternationalcommunityforGhana'spoliticalsystemreducesthe riskofsignificantpoliticalunrest.WhiletheBankhassystems,controlsandproceduresdesignedto mitigatepoliticalrisk,therecanbenoassurancethatanyadversepoliticaleventswillnothavea negativeimpactontheBank'sbusiness.

EconomicRisk Theoperationalresults,incomeandgrowthofassetsbySCBGLmaydependtoanextentonthe stabilityofGhana'smacro-economy.TheBanklikeallentitiesoperatingwithinthebordersofGhana isexposedtoeconomicrisksassociatedwiththecountry.TheBank'smanagementteamhasputin placesystemsandprocedurestominimisetheBank'sexposuretoadverseeconomicconditions; however,thiscannotprovideanassurancethatadverseeconomicconditionswillnothamperthe Bank'sperformance.

FinancialRisk SCBGL'scoreoperations,asmanagersoffinancialassetsandliabilities,exposeittootherfinancial risks.Theseincludeliquidityrisk;theabilitytomeetcustomers'withdrawalneeds,creditriskand interestraterisks.TheBankhasputinplacepolicies,proceduresandreportingsystems,whichhelp theBanktomanageitsexposuretotheserisks.TheBankisalsoactivelysupervisedbytheBoG, whichensuresthatdepositprotectionplansareinplaceandthattheBankismanagedintheinterest ofallitsstakeholders.ForfurtherinformationabouttheBank'sexposureandmanagementof financialrisk,pleaserefertopages66to72ofthisCircular.

StandardCharteredBankGhanaLimited SCBGLShareLiquidity SCBGLsharesarelistedontheGSEtoenabletradingintheBank'sshares.However,itispossiblethat therecouldbeinadequateliquidityinSCBGLsharesontheGSEatcertainperiods,meaningthat investorsmaynotbeabletosellorbuysharesoftheBankwhenevertheywanttoandattheir desiredprice.

Dilution Aninvestor'sholdingsinSCBGLwillbedilutedifthatinvestordoesnotparticipatefullyintheOffer andadditionalsharesareofferedtootherinvestors.

OperationalRisks TheBankactivelyseekstoensurethattherisksittakesdirectlyorindirectlyaspartofitsbusinessare managedeffectivelywithinapprovedriskappetite.OperationalrisksareinherentintheBank's businessandcanarisefrominadequateorfailedprocesses,systems,humanerror,fraudorexternal eventsthatinterruptnormalbusinessoperationsandcancausefinancialimpactwhichcaninsome instancesbeverymaterial.

TheBankrecognizesthepotentialimplicationsofoperationalriskandhasproactivelyimplemented policies,proceduresandcontrolstoensurethatitsbusinessandstakeholders'interestsaresecure. Inaddition,theBankhasinplaceabankers'blanketinsurancepolicytopartlycovertheriskof fraudulentpractice.

3.20 ParentCompany SCBGLisa68.11%ownedsubsidiaryofStandardCharteredHoldings(Africa)BV,whichinturnis 100%ownedbyStandardCharteredBank(“SCB”)(seeExhibit18).StandardCharteredHoldings (Africa)BVisincorporatedintheNetherlands.

StandardCharteredHoldings(Africa)BVownershipofeachSCBGLshareclassispresentedinExhibit 17:

ShareClass NumberofSharesHeld %Holdings OrdinaryShares 11,984,839 68.11 PreferenceShares 15,220,598 87.04 Source:StandardCharteredBankGhanaLimited Exhibit17:StandardCharteredBankHoldings(Africa)BV

StandardCharteredPLC(“SCPLC”),theultimateholdingcompanyofSCB,wasincorporatedand registeredinEnglandandWaleson18November1969asacompanylimitedbyshares.SCPLC's ordinarysharesandpreferencesharesarelistedontheOfficialListandtradedontheLondonStock Exchange,andthecompanyranksamongthetop25companiesintheFTSE-100bymarket capitalisation.SCPLC'sordinarysharesarealsolistedontheHongKongStockExchange.

TheLondon-headquarteredGrouphasoperatedforover150yearsinsomeoftheworld'smost dynamicmarkets,leadingthewayinAsia,AfricaandtheMiddleEast.Itsincomeandprofitshave morethandoubledoverthelastfiveyearsprimarilyasaresultoforganicgrowth.

TheGroupaspirestobethebestinternationalbankforitscustomersacrossitsmarkets.TheGroup earnsaround90percentofitsincomeandprofitsinAsia,AfricaandtheMiddleEast,fromits WholesaleandConsumerBankingbusinessesandhasanetworkofapproximately1,600branches andoutletsinover70countriesandterritories.

RenounceableRightsIssueOfferCircular ParentCompanyStructure

Exhibit18:ParentCompanyStructure

3.21 AdditionalInformation

? Deloitte&Touche,ReportingAccountants,havegivenandhavenotwithdrawntheirwritten consenttotheissueofthiscircularwiththeinclusionhereinoftheirreportsinParts3.22and5.1 ofthisdocumentandthereferencestheretointheformandcontextinwhichtheyappear.

? SaveasdisclosedinthisCircular,therehasbeennomaterialchangeinthefinancialoroperating positionofSCBGLotherthanintheordinarycourseofbusinesssinceDecember31,2008the datetowhichthelastauditedaccountsofSCBGL wereprepared.

3.22 DocumentsAvailableforInspection CopiesofthefollowingdocumentsinrespectofthebusinessandaffairsofSCBGLandtheOffermay beinspectedattheregisteredofficeofSCBGLduringnormalbusinesshoursofanyworkingday duringtheOfferPeriod:

StandardCharteredBankGhanaLimited i. TheRegulationsoftheIssuer; ii. TheBankingLicenceoftheIssuer; iii. TheresolutionoftheSCBGLBoardofDirectorsoftheIssuerdated24th April,2009 authorisingtheBanktoundertaketheOffer; iv. TheresolutionpassedbytheshareholdersoftheIssuerattheAnnualGeneralMeeting dated28th April,2009authorisingtheOffer; v. TheBank'sauditedannualreportsforthelastfiveyearsto2008; vi. ThisCircular;and vii. TheEscrowAccountAgreement.

RenounceableRightsIssueOfferCircular StandardCharteredBankGhanaLimited ProfitandlossaccountsfortheBankfortheyearsendingonthedatesstatedbelowareasfollows:

IncomeSurplusAccount 2008 2007 2006 GH¢'000 GH¢'000 GH¢'000

Balanceasat1stJanuaryre-stated 41,157 38,330 32,934 Netprofittransferredfromprofit&loss 33,187 33,038 30,748 Transfertostatutoryreservefund (4,413) (6,098) (4,065) Proposeddividend (26,769) (24,113) (21,287) Shareoptionsexercised Transfertostatedcapital Balanceasat31stDecember 43,162 41,157 38,330

RenounceableRightsIssueOfferCircular BalancesheetsoftheBankasattheyearsendingbelowareasfollows:

2008 2007 2006 Notes GH¢'000 GH¢'000 GH¢'000 Assets CashandbalwithBOG 19 146,843 97,930 55,609 Short-termgov.securities 20(i) 36,808 93,761 87,302 Duefromotherbanks 21 117,447 80,308 92,993 Loansandadvances 22 460,338 287,069 239,918 Otherassetaccounts 25 93,532 40,833 32,718 854,968 599,901 508,540

Medium-terminvestments 20(ii) 115,633 161,981 190,259 Investmentinsubsidiaries 20(iii) 1,335 100 100 Property,plant&equipment 23 12,988 11,656 11,912 Intangibleassets 24 20 99 200

Total Assets 984,944 773,737 711,011

Liabilities Customerdeposit&currentaccounts 26 742,290 534,840 445,544 Duetootherbanks&finacialIns. 27 10,018 43,911 20,780 Interestpayableandliabilities 29 93,833 33,397 43,013 Borrowing 31 28,651 63,743 72,338 Provision 30 19,435 5,042 7,394 Taxation 17(iii) 358 1,494 2,375 Totalcurrentliabilities 894,585 682,427 591,444

Medium-termloan - - 35,000 Deferredtax 18 898 2,916 3,931

TotalLiabilities 895,483 685,343 630,375

Shareholders'Funds Statedcapital 32(ii) 13,131 13,131 13,131 Incomesurplus 32(iii) 43,162 41,157 38,330 Statutoryreservefund 32(iv) 30,217 26,069 21,940 Otherreserves 32(v) 2,951 8,037 7,235 Totalshareholders'fund 89,461 88,394 80,636

Totalliab.&shareholders'fund 984,944 773,737 711,011

StandardCharteredBankGhanaLimited CashFlowStatement 2008 2007 2006 Notes GH¢'000 GH¢'000 GH¢'000 OperatingActivities:

TradingProfit 43,840 43,174 46,622

Itemsnotinvlovingcashflow: Depreciationandamortisation 1,595 1,509 1,127 Netinterestincome (76,268) (64,139) - Impairmentonfinanacialassets 1,707 1,794 (1,452) Profit/(loss)onsaleoffixedassets - 68 52 Changeininvestmentsotherthanthoseheldfortrade. 55,074 76,382 (121,166) Changeininvestmentsheldfortrade 41,041 (56,119) - Changeinloansandadvances (174,976) (51,828) (23,854) Changeinotherassets (52,817) (43,106) (7,003) Changeindeposits 207,450 89,296 114,186 Changeinamountsduetootherbanks (33,893) 23,131 (25,597) Changeininterestpayableandotherliabilities 59,513 22,459 28,116 Changeinprovision 14,393 3,842 - Changeinborrowing (35,092) (43,595) 62,923 Interestincome 110,402 94,866 - Interestexpense (34,134) (30,727) -

127,835 67,007 73,954 Incometaxpaid (13,206) (11,643) (9,357) Netcashflowfromoperatingactivities 114,629 55,364 64,597

Returnsoninvestmentsandservingoffinance Dividendpaid (26,769) (24,113) (21,287) Repaymentofsubordinateddebt - - (4,558)

Netcashusedfromfinancingactivities (26,769) (24,113) (25,845)

Investingactivities Purchaseoftangiblefixedassets (2,848) (1,631) (1,146) Investmentinsubsidiaries - - (100) Proceedsfromsalesofinvestment 1,040 - - Proceedsfromsalesoftangiblefixedassets - 16 -

Netcashflowusedininvestingactivities (1,808) (1,615) (1,246)

Netincreaseincashandcashequivalents 86,052 29,636 37,506

Analysisofchangesincashandcashequivalentsduringtheyear Cashandcashequivalentsat1January 178,238 148,602 111,096 Netincreaseincashandcashequivalents 86,052 29,636 37,506

Cashandcashequivalentsasat31December 264,290 178,238 148,602

Analysisofcashandcashequivalentsduringtheyear

CashbalanceswithBankofGhana 146,843 97,930 55,609 Nostroaccountbalances 19,090 17,453 11,415

RenounceableRightsIssueOfferCircular STANDARDCHARTEREDBANKGHANALIMITED NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARSENDED31DECEMBER2006TO2008

ACCOUNTINGPOLICIES Thefollowingaccountingpolicieshavebeenusedconsistentlyindealingwithitemswhichareconsidered materialinrelationtotheBank'sfinancialstatement.

1. REPORTINGENTITY

SCBGLisaBankincorporatedinGhana.TheBankoperateswithaUniversalBankinglicensethat allowsittoundertakeallbankingandrelatedactivities.

2. BASISOFPREPARATION

a. StatementofCompliance

ThefinancialstatementshavebeenpreparedinaccordancewithIFRSanditsinterpretationsas issuedbytheInternationalAccountingStandardsBoard(“IASB”).

b. Basisofmeasurement

ThefinancialstatementsarepresentedinGhanacedi,whichistheBank'sfunctionalcurrency, roundedtothenearestthousand.Theyarepreparedonthehistoricalcostbasisexceptforthe followingassetsandliabilitiesthatarestatedattheirfairvalue:derivativefinancialinstruments, financialinstrumentsthatarefairvaluethroughprofitorlossandfinancialinstrumentsclassifiedas available-for-sale.

c. Useofestimatesandjudgement

ThepreparationoffinancialstatementsinconformitywithIFRSrequiresmanagementtomake judgement,estimatesandassumptionsthataffecttheapplicationofpoliciesandreportedamounts ofassets,liabilities,incomeandexpenses.Theestimatesandassociatedassumptionsarebasedon historicalexperienceandvariousotherfactorsthatarebelievedtobereasonableunderthe circumstances,theresultsofwhichformthebasisofmakingthejudgementaboutcarryingvaluesof assetsandliabilitiesthatarenotreadilyapparentfromothersources.Actualresultsmaydifferfrom theseestimates.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionsto accountingestimatesarerecognisedintheperiodinwhichtheestimateisrevisediftherevision affectsonlythatperiodorintheperiodoftherevisionandfutureperiodsiftherevisionaffectsboth currentandfutureperiods.Inparticular,informationaboutsignificantareasofestimation uncertaintyandcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificant effectontheamountrecognisedinthefinancialstatements.

a. Basisofconsolidation

(i) Subsidiaries

SubsidiariesareallentitiesincludingspecialpurposeentitiesoverwhichtheBankhasthe powertodirectlyorindirectlygovernthefinancialandoperatingpolicies,generally accompanyingashareholdingofmorethanonehalfofthevotingrights.

StandardCharteredBankGhanaLimited SubsidiariesarefullyconsolidatedfromthedateonwhichtheBankeffectivelyobtainscontrol.Theyarede- consolidatedfromthedatethatcontrolceases.Subsidiariesthatareconsideredinsignificantarenot consolidatedandtheBank'sinterestsinthosesubsidiariesareclassifiedaslong-terminvestments.

(ii) Investmentsinsubsidiaries,AssociatesandJointVentures

Investmentsinsubsidiaries,associatesandJointVenturesareheldatcostlessimpairment anddividendsfrompre-acquisitionprofitsreceived,ifany. b. Revenuerecognition

IntheseparatefinancialstatementsoftheBank,interestincomeandexpenseonavailable-for-sale assetsandfinancialassetsandliabilitiesheldatamortisedcost,arerecognisedintheincome statementusingtheeffectiveinterestmethod.

Gainsandlossesarisingfromchangesinthefairvalueoffinancialassetsandliabilitiesheldatfair valuethroughprofitorloss,aswellasanyinterestreceivableorpayable,isincludedintheincome statementintheperiodinwhichtheyarise.Gainsandlossesarisingfromchangesinthefairvalueof available-for-salefinancialassets,otherthanforeignexchangegainsandlossesfrommonetary items,arerecogniseddirectlyinequity,untilthefinancialassetisderecognisedorimpairedatwhich timethecumulativegainorlosspreviouslyrecognisedinequityisrecognisedintheincome statement.DividendsarerecognisedintheincomestatementwhentheBank'srighttoreceive paymentisestablished. c. Interestincomeandexpense

Interestincomeandexpenseisrecognizedintheincomestatementusingtheeffectiveinterestrate method.Theeffectiveinterestrateistheratethatdiscountsestimatedfuturereceiptsorpayments throughtheexpectedlifeofthefinancialinstrumentsor,whenappropriate,ashorterperiod,tothe netcarryingamountofthefinancialassetorfinancialliability.Theeffectiveinterestrateis establishedoninitialrecognitionofthefinancialassetorliabilityandisnotrevisedsubsequently whencalculatingtheeffectiveinterestrate;theBankestimatescashflowsconsideringall contractualtermsofthefinancialinstrumentbutdoesnotconsiderfuturecreditlosses.The calculationincludesallfeesreceivedorpaidbetweenpartiestothecontractthatareanintegralpart oftheeffectiveinterestrate,transactioncostsandallotherpremiumsordiscounts.Transactions costsareincrementalcoststhataredirectlyattributabletotheacquisition,issueordisposalofa financialassetorliability.

Whenafinancialassetoragroupofsimilarfinancialassetshavebeenwrittendownasaresultof impairment,interestincomeisrecognisedusingtherateofinterestusedtodiscountthefuturecash flowsforthepurposeofmeasuringtheimpairmentloss.

Interestincomeandexpenseonfinancialassetsandliabilitiesheldatfairvaluethroughprofitorloss isrecognisedintheincomestatementintheperiodtheyarise. d. Feesandcommissions

Feesandcommissionincomeandexpensesthatareanintegralpartoftheeffectiveinterestrateon financialinstrumentsareincludedinthemeasurementoftheeffectiveinterestrate.

Otherfeesandcommissionincome,includingaccountservicingfees,investmentmanagementfees, salescommission,placementandarrangementfeesandsyndicationfeesarerecognisedasthe relatedservicesareperformed.

Otherfeesandcommissionexpenserelatesmainlytotransactionandservicefees,whichare expensedastheservicesarereceived.

RenounceableRightsIssueOfferCircular e. Otheroperatingincome

Otheroperatingincomecomprisesotherincomeincludinggainsorlossesarisingonfairvalue changesintradingassetsandliabilities,derecognisedavailableforsalefinancialassets,andforeign exchangedifferences.

f. Foreigncurrency

ForeigncurrencytransactionsaretranslatedintotheBank'sfunctionalcurrencyusingtheexchange ratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfrom thesettlementofsuchtransactions,andfromthetranslationatyear-endexchangeratesof monetaryassetsandliabilitiesdenominatedinforeigncurrencies,arerecognisedintheincome statement.Non-monetaryassetsandliabilitiesaretranslatedathistoricalexchangeratesifheldat historicalcostorexchangeratesatthedatethefairvaluewasdeterminedifheldatfairvalue,andthe resultingforeignexchangegainsandlossesarerecognisedintheincomestatementorshareholders' equityasappropriate.

g. Leases

(i) Classification

LeasesthattheBankassumessubstantiallyalltherisksandrewardsofownershipofthe underlyingassetareclassifiedasfinanceleases.Uponinitialrecognitiontheleasedassetis measuredatanamountequaltothelowerofitsfairvalueandpresentvalueoftheminimum leasepayments.Subsequenttoinitialrecognition,theleasedassetisaccountedforin accordancewiththeaccountingpolicyapplicabletothatasset.

Otherleasesareclassifiedasoperatingleases.

(ii) LeasePayments

Paymentsmadeunderoperatingleasesarechargedtotheincomestatementonastraight-linebasis overtheperiodofthelease.Whenanoperatingleaseisterminatedbeforetheleaseperiodhas expired,anypaymentrequiredtobemadetothelessorbywayofpenaltyisrecognisedasan expenseintheperiodinwhichterminationtakesplace.

Minimumleasepaymentsmadeunderfinanceleasesareapportionedbetweenthefinanceexpense andasreductionoftheoutstandingleaseliability.Thefinanceexpenseisallocatedtoeachperiod duringtheleasetermsoastoproduceaconstantperiodicrateofinterestontheremainingbalance oftheliability.

h. FinancialAssetsandLiabilities

(i) Categorisationoffinancialassetsandliabilities

TheBankclassifiesitsfinancialassetsinthefollowingcategories:financialassetsheldatfair valuethroughprofitorloss;loansandreceivablesandavailable-for-salefinancialassets. Financialliabilitiesareclassifiedaseitherheldatfairvaluethroughprofitorloss,orat amortisedcost.Managementdeterminesthecategorisationofitsfinancialassetsand liabilitiesatinitialrecognition.

(ii) Financialassetsandliabilitiesheldatfairvaluethroughprofitorloss

Thiscategoryhastwosub-categories:financialassetsandliabilitiesheldfortrading,and thosedesignatedatfairvaluethroughprofitorlossatinception.Afinancialassetorliability isclassifiedastradingifacquiredprincipallyforthepurposeofsellingintheshortterm.

StandardCharteredBankGhanaLimited Financialassetsandliabilitiesmaybedesignatedatfairvaluethroughprofitorlosswhen thedesignationeliminatesorsignificantlyreducesameasurementorrecognition inconsistencythatwouldotherwisearisefrommeasuringassetsorliabilitiesonadifferent basis,oragroupoffinancialassetsand/orliabilitiesismanagedanditsperformance evaluatedonafairvaluebasis.

(iii) Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminable paymentsthatarenotquotedinanactivemarket.

(iv) Availableforsalefinancialassets

Available-for-saleassetsarethosenon-derivativefinancialassetsthataredesignatedas availableforsaleorarenotclassifiedasfinancialassetsatfairvaluethroughprofitorloss, loansandreceivableandheldtomaturity.

(v) Financialliabilitiesmeasuredatamortisedcost

Thisrelatestoallotherliabilitiesthatarenotdesignatedatfairvaluethroughprofitorloss.

(vi) Initialrecognition

Purchasesandsalesoffinancialassetsandliabilitiesheldatfairvaluethroughprofitorloss, availableforsalefinancialassetsandliabilitiesarerecognisedontrade-date(thedatethe Bankcommitstopurchaseorselltheasset).Loansandreceivablesarerecognisedwhen cashisadvancedtocustomersorborrowers.

Financialassetsandliabilitiesareinitiallyrecognisedatfairvalueplusdirectlyattributable transactioncostexceptforthosethatclassifiedasatfairvaluethroughprofitorloss.

(vii) Subsequentmeasurement

Availableforsalefinancialassetsaresubsequentlymeasuredatfairvaluewiththeresulting changesrecognisedinequity.Thefairvaluechangesonavailableforsalefinancialassetsare recycledtotheincomestatementwhentheunderlyingassetissold,maturedor derecognised.Financialassetsandliabilitiesclassifiedasatfairvaluethroughprofitorloss aresubsequentlymeasuredatfairvaluewiththeresultingchangesrecognisedinthe income.

Loansandreceivablesandotherliabilitiesaresubsequentlycarriedatamortisedcostusing theeffectiveinterestmethod,lessimpairmentloss.

(viii). Derecognition

Financialassetsarederecognisedwhentherighttoreceivecashflowsfromthefinancial assetshasexpiredorwheretheBankhastransferredsubstantiallyallrisksandrewardsof ownership.Anyinterestinthetransferredfinancialassetsthatiscreatedorretainedbythe Bankisrecognisedasaseparateassetorliability.

Financialliabilitiesarederecognisedwhenthecontractualobligationsaredischarged, cancelledorexpire.

RenounceableRightsIssueOfferCircular (ix)Fairvaluemeasurement

Thedeterminationoffairvaluesofquotedfinancialassetsandfinancialliabilitiesinactive marketsarebasedonquotedmarketpricesordealerpricequotations.Ifthemarketfora financialassetorfinancialliabilityisnotactivelytradedorunlistedsecurities,theBank establishesfairvaluebyusingvaluationtechniques.Thesetechniquesincludetheuseof arms'lengthtransactions,discountedcashflowanalysis,andvaluationmodelsand techniquescommonlyusedbymarketparticipants.

Forcomplexinstrumentssuchasswaps,theBankusesproprietarymodels,whichusually aredevelopedfromrecognisedvaluationmodels.Someoralloftheinputsintothese modelsmaybederivedfrommarketpricesorratesorareestimatesbasedonassumptions.

Thevalueproducedbyamodelorothervaluationtechniquemaybeadjustedtoallowfora numberoffactorsasappropriate,becausevaluationtechniquescannotappropriately reflectallfactorsmarketparticipantstakeintoaccountwhenenteringintoatransaction. Managementbelievesthatthesevaluationadjustmentsarenecessaryandappropriateto fairlystatefinancialinstrumentscarriedatfairvalueonthebalancesheet.

(x) Offsetting

Financialassetsandliabilitiesaresetoffandthenetamountpresentedinthebalancesheet when,andonlywhen,theBankhasalegalrighttosetofftheamountsandintendseitherto settleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

Incomeandexpensesarepresentedonanetbasisonlywhenpermittedbytheaccounting standards,orforgainsandlossesarisingfromagroupofsimilartransactionssuchasinthe Bank'stradingactivity.

(xi) Amortisedcostmeasurement

Theamortisedcostofafinancialassetorliabilityistheamountatwhichthefinancialasset orliabilityismeasuredatinitialrecognition,minusprincipalrepayments,plusorminusthe cumulativeamortisationusingtheeffectiveinterestmethodofanydifferencebetweenthe initialamountrecognisedandthematurityamount,minusanyreductionforimpairment.

(xii) Identificationandmeasurementofimpairment.

TheBankassessesateachbalancesheetdatewhetherthereisobjectiveevidencethata financialassetsorgroupoffinancialassetsareimpaired.Afinancialassetoragroupof financialassetsisimpairedandimpairmentlossesareincurredif,andonlyif,thereis objectiveevidenceofimpairmentasaresultofoneormoreeventsthatoccurredafterthe initialrecognitionoftheasset(a “lossevent”),andthatlossevent(orevents)hasanimpact ontheestimatedfuturecashflowsofthefinancialassetorgroupoffinancialassetsthatcan bereliablyestimated.

Objectiveevidencethatfinancialassetsareimpairedcanincludedefaultordelinquencybya borrower,restructuringofaloanandotherobservabledatathatsuggestsadversechanges inthepaymentstatusoftheborrowers.

TheBankfirstassesseswhetherobjectiveevidenceofimpairmentexistsindividuallyfor financialassetsthatareindividuallysignificant,andindividuallyorcollectivelyforfinancial assetsthatarenotindividuallysignificant.IftheBankdeterminesthatnoobjective evidenceofimpairmentexistsforanindividuallyassessedfinancialasset,whether significantornot,itincludestheassetinagroupoffinancialassetswithsimilarcreditrisk characteristicsandcollectivelyassessesthemforimpairment.Assetsthatareindividually assessedforimpairmentandforwhichanimpairmentlossisorcontinuestoberecognised, arenotincludedinacollectiveassessmentofimpairment.

StandardCharteredBankGhanaLimited Ifthereisobjectiveevidencethatanimpairmentlossonaloanandreceivablehasbeen incurred,theamountofthelossismeasuredasthedifferencebetweentheasset'scarrying amountandthepresentvalueofestimatedfuturecashflows(excludingfuturecreditlosses thathavenotbeenincurred),discountedattheasset'soriginaleffectiveinterestrate.The carryingamountoftheassetisreducedthroughtheuseofanallowanceaccountandthe amountofthelossisrecognizedintheincomestatement.Ifaloanandreceivablehasa variableinterestrate,thediscountrateformeasuringanyimpairmentlossisthecurrent effectiveinterestratedeterminedunderthecontract.

Thecalculationofthepresentvalueoftheestimatedfuturecashflowsofacollateralised financialassetreflectsthecashflowsthatmayresultfromforeclosure,lesscostfor obtainingandsellingthecollateral,whetherornotforeclosureisprobable.Forthe purposesofacollectiveevaluationofimpairment,financialassetsaregroupedonthebasis ofsimilarcreditriskcharacteristics(i.e.onthebasisoftheBank'sgradingprocesswhich considersassettype,industry,geographicallocation,collateraltype,pastduestatusand otherrelevantfactors).Thesecharacteristicsarerelevanttotheestimationoffuturecash flowsforgroupofsuchassetsbeingindicativeofthedebtors'abilitytopayallamountsdue accordingtothecontractualtermsoftheassetsbeingevaluated.

Futurecashflowsinagroupoffinancialassetsthatarecollectivelyevaluatedfor impairmentareestimatedonthebasisofthehistoricallossexperienceforassetswithcredit riskcharacteristicssimilartothoseintheBank.Historicallossexperienceisadjustedonthe basisofcurrentobservabledatatoreflecttheeffectsofcurrentconditionsthatdidnot affecttheperiodonwhichthehistoricallossexperienceisbased,andtoremovetheeffects ofconditionsinthehistoricalperiodthatdonotexistcurrently.

If,inasubsequentperiod,theamountoftheimpairmentlossdecreasesandthedecrease canberelatedobjectivelytoaneventoccurringaftertheimpairmentwasrecognised(such asanimprovementinthedebtor'screditrating),thepreviouslyrecognisedimpairmentloss isreversedbyadjustingtheallowanceaccount.Theamountofthereversalisrecognisedin theincomestatement.

Impairmentlossesonavailable-for-salefinancialassetsarerecognisedbytransferringthe differencebetweentheamortisedacquisitioncostandcurrentfairvalueoutofequitytothe incomestatement.Whenasubsequenteventcausestheimpairmentlossonanavailable forsalefinancialassettodecrease,theimpairmentlossisreversedthroughtheincome statement.However,anysubsequentrecoveryinthefairvalueofanimpairedavailablefor salefinancialassetisrecogniseddirectlyinequity. i. Derivativefinancialinstruments

Derivativecontractsareinitiallyrecognisedatfairvalueonthedateonwhichaderivativecontractis enteredintoandaresubsequentlymeasuredagainattheirfairvalue.Fairvaluesmaybeobtained fromquotedmarketpricesinactivemarkets,recentmarkettransactions,andvaluationtechniques, includingdiscountedcashflowmodelsandoptionpricingmodels,asappropriate.Allderivatives arecarriedasassetswhenfairvalueispositiveandasliabilitieswhenfairvalueisnegative.Thefair valuechangesinthederivativearerecognisedintheincomestatement. j. Cashandcashequivalents

Cashandcashequivalentsincludenotesandcoinsonhand,unrestrictedbalancesheldwithcentral banksandhighlyliquidfinancialassetswithmaturitieslessthanthreemonths.Cashandcash equivalentsarecarriedatamortisedcostinthebalancesheet.

RenounceableRightsIssueOfferCircular k. Investmentsinsecurities

Thiscomprisesinvestmentsinshort-termGovernmentsecuritiesandmediumterminvestmentsin Governmentandothersecuritiessuchastreasurybillsandbonds.Investmentsinsecuritiesare categorisedasavailable-for-salefinancialassetsandcarriedinthebalancesheetatfairvalues.

l. Loansandreceivables

Thisismainlymadeupofplacementsandovernightdepositswithbanksandotherfinancial institutionsandloansandadvancestocustomers.Loansandreceivablesarecarriedinthebalance sheetatamortisedcost,i.e.grossreceivablelessimpairmentallowance.

m. Property,plantandequipment

(i) Recognitionandmeasurement

Itemsofpropertyandequipmentaremeasuredatcostlessaccumulateddepreciationand impairmentlosses.

Costincludesexpendituresthataredirectlyattributabletotheacquisitionoftheasset.The costofself-constructedassetsincludesthecostofmaterialsanddirectlabour,andanyother costsdirectlyattributabletobringingtheassettoaworkingconditionforitsintendeduse.” Purchasedsoftwarethatisintegraltothefunctionalityoftherelatedequipmentis capitalisedaspartofthatequipment.

Whenpartsofanitemofproperty,plantandequipmenthavedifferentusefullives,theyare accountedforasseparateitems(majorcomponents)”

(ii) Subsequentcosts

Thecostofreplacingpartofanitemofpropertyorequipmentisrecognisedinthecarrying amountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthe partwillflowtotheBankanditscostcanbemeasuredreliably.Thecostsoftheday-to-day servicingofpropertyandequipmentarerecognisedintheincomestatementasincurred.

(iii) Depreciation

Depreciationisrecognisedintheincomestatementonastraight-linebasisoverthe estimatedusefullivesofeachpartofanitemofpropertyandequipment.Leasedassetsare depreciatedovertheshorteroftheleasetermandtheirusefullives.Landisnotdepreciated.

Theestimatedusefullivesforthecurrentandcomparativeperiodsareasfollows:

Buildings 50years Leaseholdimprovements lifeofleaseupto50years ITequipmentandvehicles 3-5years Fixturesandfittings 5-10years

Depreciationmethods,usefullivesandresidualvaluesarereassessedatthereportingdate.

GainsandlossesondisposalofPP&Earedeterminedbycomparingproceedsfromdisposal withthecarryingamountsofPP&Eandarerecognisedintheincomestatementasother income.

StandardCharteredBankGhanaLimited n.Intangibleassets (i) Software

SoftwareacquiredbytheBankisstatedatcostlessaccumulatedamortisationand accumulatedimpairmentlosses.

Subsequentexpenditureonsoftwareassetsiscapitalisedonlywhenitincreasesthefuture economicbenefitsembodiedinthespecificassettowhichitrelates.Allotherexpenditureis expensedasincurred.

Amortisationisrecognisedintheincomestatementonastraight-linebasisoverthe estimatedusefullifeofthesoftware,fromthedatethatitisavailableforuse.Theestimated usefullifeofsoftwareisthreetofiveyears. o. Taxation Currenttaxistheexpectedtaxpayableonthetaxableincomefortheyear,usingtaxratesenactedor substantivelyenactedatthebalancesheetdate,andanyadjustmenttotaxpayableinrespectof previousyears. p. DeferredTaxation Deferredtaxisprovidedusingthebalancesheetmethod,providingfortemporarydifferences betweenthecarryingamountsofassetsandliabilitiesforfinancialreportingpurposesandthe amountsusedfortaxationpurposes.

Deferredtaxisnotrecognisedforthefollowingtemporarydifferences;theinitialrecognitionof goodwill,theinitialrecognitionofassetsorliabilitiesinatransactionthatisnotabusiness combinationandthataffectsneitheraccountingnortaxableprofit,anddifferencesrelatingto investmentsinsubsidiariestotheextentthattheyprobablywillnotreverseintheforeseeablefuture. Deferredtaxismeasuredatthetaxratesthatareexpectedtobeappliedtothetemporarydifferences whentheyreverse,basedonthelawsthathavebeenenactedorsubstantivelyenactedbythe reportingdate.

Adeferredtaxassetisrecognisedonlytotheextentthatitisprobablethatfuturetaxableprofitswill beavailableagainstwhichtheassetcanbeutilised.Deferredtaxassetsarereviewedateach reportingdateandarereducedtotheextentthatitisnolongerprobablethattherelatedtaxbenefit willberealised. q. Postbalancesheetevents Eventssubsequenttothebalancesheetdatearereflectedinthefinancialstatementsonlytothe extentthattheyrelatetotheyearunderconsiderationandtheeffectismaterial. r. Dividend Dividendincomeisrecognisedwhentherighttoreceiveincomeisestablished.Dividendpayableis recognizedasaliabilityintheperiodinwhichtheyaredeclared. s. Deposits,amountsduetobanksandborrowing Thisismainlymadeupofcustomerdepositaccounts,overnightplacementsbybanksandother financialinstitutionsandmediumtermborrowings.Theyarecategorisedasotherfinancialliabilities carriedinthebalancesheetatamortisedcost. t. Provisions Aprovisionisrecognisedif,asaresultofapastevent,theBankhasapresentlegalorconstructive obligationthatcanbeestimatedreliably,anditisprobablethatanoutflowofeconomicbenefitswill berequiredtosettletheobligation.Provisionsaredeterminedbydiscountingtheexpectedfuture cashflowsatapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyand, whereappropriate,therisksspecifictotheliability.

RenounceableRightsIssueOfferCircular u. FinancialGuarantees

FinancialguaranteesarecontractsthatrequiretheBanktomakespecifiedpaymentstoreimbursethe holderforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordance withthetermsofadebtinstrument.

Financialguaranteesareinitiallyrecognisedattheirfairvalue,andthefairvalueisamortisedoverthe lifeofthefinancialguarantee.Thefinancialguaranteesaresubsequentlycarriedatthehigherofthe amortisedamountandthepresentvalueofanyexpectedpayment(whenapaymentunderthe guaranteehasbecomeprobable).

v. EmployeeBenefits

(i) Definedcontributionplans Obligationsforcontributionstodefinedcontributionpensionplansarerecognisedasan expenseintheincomestatementwhentheyaredue.

(ii) Definedbenefitplans TheBank'snetobligationinrespectofdefinedbenefitpensionplansiscalculatedseparately foreachplanbyestimatingtheamountoffuturebenefitthatemployeeshaveearnedin returnfortheirserviceinthecurrentandpriorperiods;thatbenefitisdiscountedto determineitspresentvalue,andanyunrecognisedpastservicecosts.Thediscountrateis theyieldatthereportingdateonalong-datedinstrumentontheGhanamarket.The calculationisperformedusingtheprojectedunitcreditmethod.Changesinthefairvalueof theplanliabilitiesarerecognisedintheincomestatement. Actuarialgainsandlossesontheplanarerecognisedintheincomestatement.

(iii) Terminationbenefits TerminationbenefitsarerecognisedasanexpensewhentheBankisdemonstrably committed,withoutrealisticpossibilityofwithdrawal,toaformaldetailedplantoterminate employmentbeforethenormalretirementdate.Terminationbenefitsforvoluntary redundanciesarerecognisediftheBankhasmadeanofferencouragingvoluntary redundancy,itisprobablethattheofferwillbeaccepted,andthenumberofacceptances canbeestimatedreliably.

(iv) Short-termbenefits

Short-termemployeebenefitobligationsaremeasuredonanundiscountedbasisandare expensedastherelatedserviceisprovided. Aprovisionisrecognisedfortheamountexpectedtobepaidundershort-termcashbonus orprofit-sharingplansiftheBankhasapresentlegalorconstructiveobligationtopaythis amountasaresultofpastserviceprovidedbytheemployeeandtheobligationcanbe estimatedreliably.

w. ImpairmentonNon-FinancialAssets

ThecarryingamountoftheBank'snon-financialassetsotherthandeferredtaxassets,arereviewedat eachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuch indicationexiststhentheasset'srecoverableamountisestimated.

Animpairmentlossisrecognizedifthecarryingamountofanassetexceedsitsrecoverableamount.

StandardCharteredBankGhanaLimited Therecoverableamountofanassetisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell. Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusing pre-taxdiscountratethatreflectscurrentmarketassessmentofthetimevalueofmoneyandrisks specifictotheasset.Impairmentlossesarerecognisedintheincomestatement.

Impairmentlossesrecognisedinpriorperiodsareassessedateachreportingdateforanyindications thatthelosshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeena changeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversed onlytotheextentthattheasset'scarryingamountdoesnotexceedthecarryingamountthatwould havebeendetermined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeen recognised. x. PreferenceandOrdinaryShareCapital

(i) Preferencesharecapital TheBankclassifiescapitalinstrumentsasfinancialliabilitiesorequityinstrumentsin accordancewiththesubstanceofthecontractualtermsoftheinstrument.TheBank's preferencesharesareirredeemableandnon-cumulativewithrespecttodividend payments.Accordingly,theyarepresentedasacomponentofstatedcapital.

(ii) Shareissuecosts Incrementalcostsdirectlyattributabletotheissueofanequityinstrumentarededucted fromtheinitialmeasurementoftheequityinstruments. y. Earningspershare TheBankpresentsbasicanddilutedEPSdataforitsordinaryshares.BasicEPSiscalculatedbydividing theprofitorlossattributabletoordinaryshareholdersoftheBankbythenumberofordinaryshares outstandingduringtheperiod.TheBankhasnoconvertiblenotesandshareoptionswhichcould potentiallydiluteitsEPSandthereforetheBank'sBasicanddilutedEPSareessentiallythesame. z. Segmentreporting. AsegmentisadistinguishablecomponentoftheBankthatisengagedeitherinprovidingproductsor services(businesssegment),orinprovidingproductsorserviceswithinaparticulareconomic environment(geographicalsegment),whichissubjecttorisksandrewardsthataredifferentfrom thoseofothersegments.TheBank'sprimaryformatforsegmentreportingisbasedonbusiness segments. aa. Sharebasedpaymenttransactions EmployeesoftheBankparticipateinsharebasedpaymenttransactionswiththeBank'sparent company.TheparentallocatescosttotheBankrepresentingthefairvalueofthesharebased paymentsattributabletotheemployeesoftheBank.Theallocatedcostisrecognisedasanexpensein eachperiod. ab. Newstandardsandinterpretationsnotyetadopted Anumberofnewstandards,amendmentstostandardsandinterpretationsarenotyeteffectivefor theyearended31December2008,andhavenotbeenappliedinpreparingthesefinancial statements.Thesearedisclosedasfollows:

RenounceableRightsIssueOfferCircular ? IAS1(AC101)presentationoffinancialstatementsbecomesmandatoryfortheBank'sfinancial reportingperiodending31December2009willrequirethepresentationofallnon-owner changesinequityinasinglestatementofcomprehensiveincome(whichwillincludethecurrent incomestatement)andownerchangesinequityinthestatementofchangesinequity. Reclassification adjustments and income tax relating to each component of other comprehensiveincomemustbedisclosedonthefaceofthestatementofcomprehensive income.Currentlythiscomponentistheavailable-for-salefairvaluegains/lossesreserve. ? IFRS8OperatingSegmentsintroducesthe “managementapproach” tosegmentreporting.IFRS 8,whichbecomesmandatoryfortheBank's2009financialstatements,willrequirethe disclosureofsegmentinformationbasedontheinternalreportsregularlyreviewedbythe Bank'sChiefOperatingDecisionMakerinordertoassesseachsegment'sperformanceandto allocateresourcestothem.CurrentlytheBankpresentssegmentinformationinrespectofits businesssegments(seenote7).Underthemanagementapproach,theBankwillpresent segmentinformationinrespectofConsumerandWholesaleBanking. ? RevisedIAS23BorrowingCostsremovestheoptiontoexpenseborrowingcostsandrequires thatanentitycapitaliseborrowingcostsdirectlyattributabletotheacquisition,constructionor productionofaQualifyingassetaspartofthecostofthatasset.TherevisedIAS23willbecome mandatoryfortheBank's2009financialstatementsandwillconstituteachangeinaccounting policyfortheBank.InaccordancewiththetransitionalprovisionstheBankwillapplytherevised IAS23toQualifyingassetsforwhichcapitalisationofborrowingcostscommencesonorafterthe effectivedate. ? IAS27(AC132)ConsolidatedandSeparateFinancialStatementswillbecomemandatoryforthe Bank's2010financialstatements.Thisamendmentrelatesmainlytoaccountingforchangesin thenon-controlling(minority)interestinasubsidiaryandthelossofcontrolinasubsidiary: ? Acquisitionsofadditionalnon-controllingequityinterestsafterabusinesscombinationare accountedforasequitytransactions.Disposalsofequityinterestswhileretainingcontrolare accountedforasequitytransactions. ? Transactionsgivingrisetoalossofcontrol,throughsaleorotherwise,willresultinagainorloss beingrecognisedinprofitorloss.Thegainorlossincludesaremeasurementtofairvalueofany retainedequityinterestintheinvestee.TheamendmentstoIAS27(AC132)alsorequirethat losses(includingnegative “othercomprehensiveincome” asdetailedintherevisedIAS1(AC 101))havetobeallocatedtothenon-controllinginterestevenifdoingsocausesthenon- controllinginteresttobeinadeficitposition.Alltheseamendmentshavetobeapplied prospectively. ThisstandardisnotexpectedtohaveanyimpactontheBank'sfinancialstatements. ? IAS32(AC125)FinancialInstruments:PresentationandIAS1(AC101)PresentationofFinancial Statements:PuttableFinancialInstrumentsandObligationsArisingonLiquidationwillbecome mandatoryforthe31December2009financialstatements.Thisamendmentrequirescertain puttableinstrumentsthatmeetthedefinitionofafinancialliabilitytobeclassifiedasequityif andonlyiftheymeettherequiredconditions.Itisnotexpectedtohaveanyimpactonthe financialstatements. ? IFRS2(AC139)amendmentSharebasedpayment:vestingconditionsandcancellationswill becomemandatoryforthe31December2009financialstatementsandappliesretrospectively. Theamendmentsapplytoequity-settledshare-basedpaymenttransactionsandclarifywhatare vestingand “non-vestingconditions”.Vestingconditionsarenowlimitedtoserviceconditions (asdefinedinthecurrentIFRS2(AC139))andperformanceconditions.Non-vestingconditions areconditionsthatdonotdeterminewhethertheentityreceivestheservicesthatentitlethe counterpartytoashare-basedpaymentarenon-vestingconditions.Non-vestingconditionsare takenintoaccountinmeasuringthegrantdatefairvalueandthereafterthereisno “true-up” for differencesbetweenexpectedandactualoutcomes.Thesechangeswillhavenoimpactonthe Bank'sfinancialstatements.

StandardCharteredBankGhanaLimited · IFRS3(AC140)BusinessCombinationswillbecomemandatoryforthe31December2010 financialstatements.Thisstandardrequiresallfuturetransactioncostsrelatingtobusiness combinationstobeexpensedandcontingentpurchaseconsiderationrecognisedatfairvalueat acquisitiondate.Forsuccessivesharepurchases,anygainorlossforthedifferencebetweenthe fairvalueandthecarryingamountofthepreviouslyheldequityinterestintheacquireemustbe recognisedinprofitandloss.ItisnotexpectedtohaveanyimpactontheBank'sfinancial statements. · IFRIC13CustomerLoyaltyProgrammesaddressestheaccountingbyentitiesthatoperate,or otherwiseparticipatein,customerloyaltyprogrammesfortheircustomers.Itrelatesto customerloyaltyprogrammesunderwhichthecustomercanredeemcreditsforawardssuchas freeordiscountedgoodsorservices.IFRIC13becomesmandatoryfortheBank's2009financial statements.

4. NON – PERFORMINGLOANSRATIO Percentageofgrossnon-performingloans(“substandardtoloss”)tototalcredit/advancesportfolio (gross)is5%(2007:4%).

5.CONTINGENTLIABILITIESANDCOMMITMENTS

6. SOCIALRESPONSIBILITYCOST AnamountofGH¢45,266(2007:GH¢168,590)wasspentaspartofthesocialresponsibilityofthe Bank.

7. SEGMENTALREPORTING SegmentalinformationispresentedinrespectoftheBank'sbusinesssegments.TheBankis organisedintotwomainbusinesssegments:WholesaleBankingandConsumerBanking.

8.INTERESTINCOME: (i)Classification

RenounceableRightsIssueOfferCircular (ii)Categorisation

IncludedunderinterestincomeonloansandreceivableisatotalamountofGH¢Nil(2007:GH¢:Nil) accruedonimpairedfinancialassets.

9.INTERESTEXPENSES

TotalinterestexpenseonfinancialliabilitiesheldatamortisedcostwasGH¢34,134,000(2007: GH¢30,727,000).

10.NETFEEANDCOMMISSIONINCOME

StandardCharteredBankGhanaLimited Thefeeandcommissionincomeandexpensedisclosedabovearefeesotherthanthoseincludedin determiningtheeffectiveinterestrate.

11.OTHEROPERATINGINCOME

12.OTHERINCOME

13.OPERATINGEXPENSES

RenounceableRightsIssueOfferCircular 14.STAFFCOST

15.IMPAIRMENTLOSS

StandardCharteredBankGhanaLimited 16. FINANCIALINSTRUMENTSCLASSIFICATIONSUMMARY Financialinstrumentsareclassifiedbetweenfourrecognitionprinciples:heldatfairvaluethrough profitorloss(comprisingtradinganddesignated),available-for-sale,held-to-maturityandloansand receivables.Thesecategoriesoffinancialinstrumentshavebeencombinedforpresentationonthe faceofthebalancesheet.

TheBank'sclassificationofitsprincipalfinancialassetsandliabilitiesaresummarisedbelow:

RenounceableRightsIssueOfferCircular 16.FINANCIALINSTRUMENTSCLASSIFICATIONSUMMARY(CONTD) Financial DesignatedLiabilities atfairvalueMeasuredatTotal throughprofitAmortisedCarrying Note Trading orLoss Cost Amount GH¢’000 GH¢’000 GH¢’000 GH¢’000

Customerdeposits - - 742,290 742,290 Duetootherbanksand financialinstitutions - - 10,018 10,018 Otherliabilities 875 - - 875 Borrowings - - 28,651 28,651 Totalat31/12/08 875 - 780,959 781,834

Customerdeposits - - 534,840 534,840 Duetootherbanksand financialinstitutions - - 43,911 43,911 Borrowings - - 63,743 63,743 Totalat31/12/07 - - 642,494 642,494

Thefairvaluesoffinancialassetsandliabilitiesdisclosedabove,approximatestheircarryingvalues. 17. TAXATION

(ii)TaxationPayable

StandardCharteredBankGhanaLimited (iii)ReconciliationofEffectiveTaxRate Analysisoftaxationchargeintheyear:

Effectivetaxrate24%23%28%

Thedifferencesareexplainedbelow:

Theincometaxfortheyearisbasedonataxrateof25%onprofitbeforetax.Thenationalreconstruction levyhasbeenabolishedsince2006.

Thetaxliabilitiesupto2004havebeenagreedwiththeInternalRevenueService.Theremainingliabilities aresubjecttotheagreementoftheInternalRevenueService

(iv) TaxRecognisedDirectlyinEquity Currenttaxcredit/chargeonavailable-for-saleassetsfortheyearwasNil(2007:Nil).

18.DEFERREDTAXATION

RenounceableRightsIssueOfferCircular (i)Recogniseddeferredtaxassetsandliabilities. Deferredtaxassetsandliabilitiesareattributabletothefollowing:

IncludedindeferredtaxesareamountsofGH¢600,750(2007:GH¢1,322,000)recogniseddirectlyin equityinrespectofmarktomarketvaluationonavailableforsalefinancialassets.

19.CASHANDBALANCESWITHBANKOFGHANA

20.INVESTMENT

(i).Short-termgovernmentsecurities(investment)

(ii).Medium-terminvestmentinothersecurities

StandardCharteredBankGhanaLimited (iii)EquityInvestment

InvestmentinsubsidiariesrepresentstheBank'sequityinterestinStandardCharteredInvestment Services,awhollyownedsubsidiary,whichwasincorporatedin2005. 21.DUEFROMOTHERBANKS

22.LOANSANDADVANCES (i)Analysisbytype

Theaboveconstitutesloansandadvances(includingcreditbillsnegotiated)tocustomersandstaff. (ii)KeyratiosonLoansandAdvances a)Loanlossprovisionratio3%(2007:4%) b)Gross-nonperformingloanratiois5%(2007:4%) c)Ratioof50largestexposure(grossfundedandnon-funded)tototalexposureis48% (2007:53%).

RenounceableRightsIssueOfferCircular (iii)Analysisbybusinesssegments

(iv)Analysisbytypeofcustomer

StandardCharteredBankGhanaLimited 23.PROPERTY,PLANTANDEQUIPMENT

(iii)Operatingleases Noncancellableoperatingleaserentalsarepayableasfollows:

23.(PROFIT)/LOSSONDISPOSALOFPROPERTY,PLANTANDEQUIPMENTAROSEASFOLLOWS:

RenounceableRightsIssueOfferCircular 24.INTANGIBLES

Thisrelatestothecostofpurchasedsoftware. 25.OTHERASSETSACCOUNTS

26.CUSTOMERDEPOSITANDCURRENTACCOUNTS

27.DUETOOTHERBANKSANDFINANCIALINSTITUTIONS

StandardCharteredBankGhanaLimited 28.DIVIDENDS

29.INTERESTPAYABLEANDOTHERLIABILITIES

30.PROVISIONS

31.BORROWING

Theshort-termloanrepresentsborrowingonthelocalmarketwithinterestratesbenchmarkedagainst the91-dayTreasuryBillrate.

RenounceableRightsIssueOfferCircular 32.CAPITALANDRESERVES (i)Reconciliationofmovementincapitalandreserves

(ii)Statedcapital

Thereisnoshareintreasuryandnocallorinstalmentunpaidonanyshare. Thepreferencesharesareirredeemableandnon-cumulativewithrespecttodividendpayments.

StandardCharteredBankGhanaLimited (iii) Incomesurplus(retainedearnings) Thisrepresentstheresidualofcumulativeannualprofitsthatareavailablefordistributiontoshareholders. (iv) Statutoryreserve Thisrepresentsamountssetasideasanon-distributablereservefromannualprofitsinaccordancewith section29oftheBankingAct,2004(Act673). (v) Otherreserves Thiscomprisesmarked-to-marketgains/lossesonavailable-for-saleinvestmentsecuritiesofGH¢2,403,000 (2007:GH¢5,285,000),anamountofGH¢4,339,000(2007:GH¢4,074,000)setasidefromincomesurplus accounttomeettheminimumrequirementsofstatutoryimpairmentallowancefornon-performingloans andadvances,anamountoffairvalueofVisaInc.sharesdonatedbySCBof1,736,000,aswellasdeferred taxesrecogniseddirectlyinequityofGH¢601,750(2007:GH¢1,322,000).

33. RELATEDPARTYTRANSACTIONS

ThecompanyisasubsidiaryofStandardCharteredHoldings(Africa)B.Vanditsultimateparentcompanyis StandardCharteredPLC.

(I) Directors,officersandotheremployees:

ThefollowingareLoanBalancesduefromRelatedParties:

(ii) Associatedcompanies

Amountsduefromassociatedcompaniesatthebalancesheetdateswereasfollows:

(iii) Managementandtechnicalservicesfees

TheBankhastwoagreementswithitsparentcompany.Totalchargesandprovisionsmadein respectoftheseagreementsamountedtoGH¢3,760,753(2007:GH¢3,075,000).TheBankhas three(3)newagreementswiththeGroupundertheTechnologyTransferRegulation(LI1547)of Ghanawhicharepending

RenounceableRightsIssueOfferCircular registration/approvalbytheGhanaInvestmentPromotionCouncil(GIPC).Rechargesaccruingunderthese agreementstotallingGH¢4,729,676havebeenprovidedforbymanagementonthebasisofprudence.

iv) Sharebasedpayments

IncludedinstaffcostisanamountofGH¢1,102,112(2007:GH¢1,027,413)payabletotheHoldingcompany inrespectofvalueofequitysettledsharebasedpaymentsallocatedtoemployeesoftheBankonaGroup arrangementbasis.

35. FINANCIALRISKMANAGEMENT

(i) IntroductionandOverview

TheBankhasexposuretothefollowingrisksfromitsuseoffinancialinstruments:

creditrisk; liquidityrisk; marketrisks;and operationalrisks.

ThisnotepresentsinformationabouttheBank'sexposuretoeachoftheaboverisks,theBank'sobjectives, policiesandprocessesformeasuringandmanagingrisk,andtheBank'smanagementofcapital.

Riskmanagementframework

TheBoardofDirectorshasoverallresponsibilityfortheestablishmentandoversightoftheBank'srisk managementframework.TheBoardhasestablishedtheAssetandLiabilityManagementCommittee (“ALCO”),theCreditCommitteeandtheCountryOperationalRiskGroup(“CORG”),whichareresponsiblefor developingandmonitoringtheBank'sriskmanagementpoliciesintheirspecifiedareas.Allthese committeesincludemembersofexecutivemanagementandreportregularlytotheBoardofDirectorson theiractivities.

TheBank'sriskmanagementpoliciesareestablishedtoidentifyandanalysetherisksfacedbytheBank,to setappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.Riskmanagement policiesandsystemsarereviewedregularlytoreflectchangesinmarketconditions,productsandservices offered.TheBank,throughitstrainingandmanagementstandardsandprocedures,aimstodevelopa disciplinedandconstructivecontrolenvironment,inwhichallemployeesunderstandtheirrolesand obligations.

TheBank'sAuditRiskCommittee(“ARCO”)isresponsibleformonitoringcompliancewiththeBank'srisk managementpoliciesandprocedures,andforreviewingtheadequacyoftheriskmanagementframeworkin relationtotherisksfacedbytheBank.Thiscommitteeisassistedinthesefunctionsbyariskmanagement structureinalltheunitsoftheBankwhichensuresaconsistentassessmentofriskmanagementcontrolsand procedures.

(ii) CreditRisk

Creditriskmanagement:

CreditriskistheriskoffinanciallosstotheBankifacustomerorcounterpartytoafinancialinstrumentfailsto meetitscontractualobligations,andarisesprincipallyfromtheBank'sloansandadvancestocustomersand otherbanksandinvestmentsecurities.

TheCreditCommittee(“CC”),asub-committeeoftheboardhasresponsibilityforcreditriskissues. Proceduresformanagingcreditriskaredeterminedatthebusinesslevelswithspecificpoliciesand proceduresbeingadaptedtodifferentriskenvironmentandbusinessgoals.Riskofficersarelocatedinthe businesstomaximisetheefficiencyofdecisionmaking.

StandardCharteredBankGhanaLimited Thebusinessesworkingwiththeriskofficestakeresponsibilityformanagingpricingforrisk,portfolio diversificationandoverallassetqualitywithintherequirementsofBank'sstandards,policiesandbusiness strategy.

WholesaleBanking

WithintheWholesaleBankingbusiness,anumericalgradingsystemof1 – 14with1beingthehighestquality isusedforquantifyingtheriskassociatedwithcounterparty.Thegradingisbasedonaprobabilityofdefault measure,withcustomersanalysedagainstarangeofquantitativeandqualitativemeasures.ExpectedLoss isusedforthefurtherassessmentofindividualexposuresandportfolioanalysis.Thereisaclearsegregation ofdutieswithloanapplicationsbeingpreparedseparatelyfromtheapproval

ConsumerBanking

Forconsumerbankingstandardcreditapplicationformsaregenerallyusedtoprocessandapproveloans.As withwholesalebanking,originationandapprovalrolesaresegregated.

ProblemCreditManagementandProvisioning

Consumerbanking

Anaccountisconsideredtobeindefaultwhenpaymentisnotreceivedontheduedate.Accountsthatare overduebymorethan30daysareconsidereddelinquent.Theseaccountsarecloselymonitoredandsubject toacollectionsprocess.

Theprocessusedforraisingprovisionsisdependentontheproduct.Formortgages,individualimpairment provisions(“IIP”)aregenerallyraisedat150dayspastduebasedonthedifferencebetweentheoutstanding amountoftheloanandthepresentvalueoftheestimatedfuturecashflows.Forunsecuredproducts, individualprovisionsareraisedfortheentireoutstandingamountat150dayspastdue.Forallproducts therearecertainaccounts,suchascasesinvolvingbankruptcy,fraudanddeath,wherethelossrecognition processisaccelerated.

APortfolioImpairmentProvision(“PIP”)isheldtocovertheinherentriskoflosses,whichalthoughnot identified,areknownthroughexperiencetobepresentintheloanportfolio.PIPcoversbothperforming loansandloansoverdueforlessthan150days.Theprovisionissetwithreferencetopastexperienceusing flowratemethodology,aswellastakingaccountofjudgmentfactorssuchastheeconomicandbusiness environmentandthetrendsinarangeofportfolioindicators.

Wholesalebanking

Inwholesalebanking,accountsorportfoliosareplacedon “EarlyAlert” whentheydisplaysignsofweakness. SuchaccountsandportfoliosaresubjecttoadedicatedprocesswithoversightinvolvingseniorRiskOfficers andGroupSpecialAssetsManagement(“GSAM”).Accountplansarere-evaluatedandremedialactionsare agreedandmonitoreduntilcomplete.Remedialactionsinclude,butarenotlimitedto,exposurereduction, securityenhancement,exitoftheaccountorimmediatemovementoftheaccountintothecontrolofGSAM, thespecialistrecoveryunit.

Loansaredesignatedasimpairedandconsiderednon-performingwhererecognisedweaknessindicates thatfullpaymentofeitherinterestorprincipalbecomesquestionable.Impairedaccountsaremanagedby GSAM,whichisindependentofthemainbusinessesoftheBank.Whereanyamountisconsidered uncollectible,anindividualimpairmentprovisionisraised,beingthedifferencebetweentheloancarrying amountandthepresentvalueofestimatedfuturecashflows.Inanydecisionrelatingtotheraisingof provisions,theBankattemptstobalanceeconomicconditions,localknowledgeandexperience,andthe resultsofindependentassetreviews.Whereitisconsideredthatthereisnorealisticprospectofrecovering anelementofanaccountagainstwhichanimpairmentprovisionhasbeenraised,thanthatamountwillbe writtenoff.

RenounceableRightsIssueOfferCircular Aportfolioimpairmentprovisionisheldtocovertheinherentriskoflosses,whichalthoughnotidentified, areknownthroughexperiencetobepresentinanyloanportfolio.Inwholesalebanking,theportfolio impairmentprovisionissetwithreferencetopastexperienceusinglossrates,andjudgmentalfactorssuchas theeconomicenvironmentandthetrendsinkeyportfolioindicators. Setoutbelowisananalysisofvariouscreditexposures. Analysisbycreditgradeofloansandadvances LoansandReceivables

Analysisofcreditconcentrationrisk

TheconcentrationofloansandadvancesbybusinesssegmentandcustomertypesaredisclosedinNote22 (iii)and22(iv)respectively.InvestmentsecuritiesareheldlargelyinGovernmentinstruments.

Maximumcreditexposure

Attheendoftherelevantyears,themaximumcreditriskexposureoftheBankintheeventofotherparties failingtoperformtheirobligationsisdetailedbelow.Noaccounthasbeentakenofanycollateralheldand themaximumexposuretolossisconsideredtobetheinstruments'balancesheetcarryingamountor,for non-derivativeoff-balancesheettransactions,theircontractualnominalamounts.

Fairvalueofcollateralheld

TheBankholdscollateralagainstloansandadvancestocustomersintheformofmortgageinterestsover property,otherregisteredsecuritiesoverassets,andguarantees.Estimatesoffairvaluearebasedonthe

StandardCharteredBankGhanaLimited valueofcollateralassessedatthetimeofborrowing,andgenerallyarenotupdatedexceptwhenaloanis individuallyassessedasimpaired.

Anestimateofthefairvalueofcollateralandothersecurityenhancementsheldagainstfinancialassetsis shownbelow

Loansandreceivables

(ii) Liquidityrisk

TheBankdefinesliquidityriskastheriskthattheBankeitherdoesnothavesufficientfinancialresources availabletomeetallitsobligationsandcommitmentsastheyfalldue,orcanaccessthemonlyatexcessive cost.

ItisthepolicyoftheBanktomaintainadequateliquidityatalltimes,andforallcurrencies.HencetheBank aimstobeinapositiontomeetallobligations,torepaydepositors,tofulfilcommitmentstolendandtomeet anyothercommitments.

LiquidityriskmanagementisgovernedbytheBank'sAssetandLiabilityManagementCommittee(ALCO), whichischairedbyanExecutiveDirector.ALCOisresponsibleforbothstatutoryandprudentialliquidity. Theseresponsibilitiesincludetheprovisionofauthorities,policiesandprocedures.

ALCOhasprimaryresponsibilityforcompliancewithregulationsandBankpolicyandmaintainingaliquidity crisiscontingencyplan.

AsubstantialportionoftheBank'sassetsarefundedbycustomerdepositsmadeupofcurrentandsavings accountsandotherdeposits.Thesecustomerdeposits,whicharewidelydiversifiedbytypeandmaturity, representastablesourceoffunds.Lendingisnormallyfundedbyliabilitiesinthesamecurrency.

TheBankalsomaintainssignificantlevelsofmarketablesecuritieseitherforcompliancewithlocalstatutory requirementsorasprudentialinvestmentsofsurplusfunds.

ALCOoverseesthestructuralforeignexchangeandinterestrateexposuresthatarisewithintheBank.These responsibilitiesaremanagedthroughtheprovisionofauthorities,policiesandproceduresthatareco- ordinatedbyALCO.CompliancewithBankratiosisalsomonitoredbyALCO.

(iii) Marketrisks

Managementofmarketrisk

TheBankrecognisesmarketriskastheexposurecreatedbypotentialchangesinmarketpricesandrates, suchasinterestrates,equitypricesandforeignexchangerates.TheBankisexposedtomarketriskarising principallyfromcustomerdriventransactions.

MarketriskisgovernedbytheBank'sMarketRiskunitwhichissupervisedbyALCO,andwhichagrees policies,proceduresandlevelsofriskappetiteintermsofValueatRisk(“VaR”).Theunitprovidesmarket riskoversightandguidanceonpolicysetting.Policiescoverboththetradingandnon-tradingbooksofthe Bank.ThenontradingbookisdefinedastheBankingbook.Limitsareproposedbythebusinesseswithin thetermsofagreedpolicy.

RenounceableRightsIssueOfferCircular Theunitalsoapprovesthelimitswithindelegatedauthoritiesandmonitorsexposuresagainsttheselimits. Additionallimitsareplacedonspecificinstrumentsandcurrencyconcentrationswhereappropriate. SensitivitymeasuresareusedinadditiontoVaRasriskmanagementtools.

VaRmodelsarebacktestedagainstactualresultstoensurepre-determinedlevelsofaccuracyare maintained.Bank'sMarketRiskunitcomplementstheVaRmeasurementbyregularlystresstestingmarket riskexposurestohighlightpotentialrisksthatmayarisefromextrememarketeventsthatarerarebut plausible.Stresstestingisanintegralpartofthemarketriskmanagementframeworkandconsidersboth historicalmarketeventsandforward-lookingscenarios.Adhocscenariosarealsopreparedreflecting specificmarketconditions.Aconsistentstresstestingmethodologyisappliedtotradingandnon-trading books.

Stressscenariosareregularlyupdatedtoreflectchangesinriskprofileandeconomicevents.Theunithas responsibilityforreviewingstressexposuresand,wherenecessary,enforcingreductionsinoverallmarket riskexposure.Italsoconsidersstress-testingresultsaspartofitssupervisionofriskappetite.Thestresstest methodologyassumesthatmanagementactionwouldbelimitedduringastressevent,reflectingthe decreaseinliquiditythatoftenoccurs.Contingencyplansareinplaceandcanbereliedoninplaceofany liquiditycrisis.TheBankalsohasaliquiditycrisismanagementcommitteewhichalsomonitorsthe applicationofitspolicies.

TheBankhasnotidentifiedanylimitationsoftheVaRmethodologyitiscurrentlyusing.

ForeignExchangeExposure

TheBank'sforeignexchangeexposurescomprisetradingandnon-tradingforeigncurrencytranslation exposures.Foreignexchangeexposuresareprincipallyderivedfromcustomerdriventransactions. Concentrationofforeigncurrencydenominatedassetsandliabilitiesaredisclosedinnote36.

Sensitivityanalysis

A5%strengtheningofthecediagainstthefollowingcurrenciesat31December2008wouldhaveimpacted equityandprofitorlossbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,in particularinterestrates,remainconstant.Theanalysisisperformedonthesamebasisfor2007.

Abestcasescenario5%weakeningofthecediagainsttheabovecurrenciesat31Decemberwouldhavehad theequalbutoppositeeffectontheabovecurrenciestotheamountsshownabove,onthebasisthatall othervariablesremainconstant.

StandardCharteredBankGhanaLimited Interestrateexposure

Theprincipalrisktowhichnon-tradingportfoliosareexposedistheriskoflossfromfluctuationsinthe futurecashflowsorfairvaluesoffinancialinstrumentbecauseofachangeinmarketinterestrates.Interest rateriskismanagedprincipallythroughmonitoringinterestrategapsandbyhavingpre-approvedlimitsfor reprisingbands.TheALCOisthemonitoringbodyforcompliancewiththeselimitsandisassistedbythe Bank'sMarketRiskunitinitsday-to-daymonitoringactivities.

Themanagementofinterestrateriskagainstinterestrategaplimitsissupplementedbymonitoringthe sensitivityoftheBank'sfinancialassetsandliabilitiestovariousstandardandnon-standardinterestrate scenarios.Standardscenariosthatareconsideredonamonthlybasisincludea100basispoint(bp)parallel fallorriseinmarketinterestrates.

Achangeofa100basispointsininterestratesatthereportingdatewouldhaveimpactedequityandprofitor lossbytheamountsshownbelow.

(iv) Operationalrisks

Operationalriskistheriskofdirectorindirectlossduetoaneventoractionresultingfromthefailureof internalprocesses,peopleandsystems,orfromexternalevents.TheBankseekstoensurethatkey operationalrisksaremanagedinatimelyandeffectivemannerthroughaframeworkofpolicies,procedures andtoolstoidentifyassess,monitor,controlandreportsuchrisks.

CORGhasbeenestablishedtosuperviseanddirectthemanagementofoperationalrisksacrosstheBank. CORGisalsoresponsibleforensuringadequateandappropriatepolicies,proceduresareinplaceforthe identification,assessment,monitoring,controlandreportingofoperationalrisks.

TheCORGisresponsibleforestablishingandmaintainingtheoveralloperationalriskframeworkandfor monitoringtheBank'skeyoperationalriskexposures.ThisunitissupportedbyWholesaleBankingand ConsumerBankingOperationalRiskunits.Theseunitsareresponsibleforensuringcompliancewithpolicies andproceduresinthebusiness,monitoringkeyoperationalriskexposures,andtheprovisionsofguidanceto therespectivebusinessareasonoperationalrisk.

(v) Complianceandregulatoryrisk

Complianceandregulatoryriskincludestheriskofnon-compliancewithregulatoryrequirements.The Bank'scomplianceandregulatoryriskfunctionisresponsibleforestablishingandmaintainingan appropriateframeworkoftheBank'scompliancepoliciesandprocedures.Compliancewithsuchpolicies andproceduresistheresponsibilityofallmanagers.

RenounceableRightsIssueOfferCircular (vi)Capitalmanagement

TheCentralBanksetsandmonitorscapitalrequirementsfortheBank.

InimplementingcurrentcapitalrequirementstheCentralBankrequirestheBanktomaintainaprescribed ratiooftotalcapitaltototalrisk-weightedassets.

TheBank'scapitalisanalysedintotwotiers:

Tier1capital,whichincludesordinarypaidupsharecapital,permanentpreferencesharesanddisclosed reserves,afterdeductingsomeassetssuchasinvestmentsincapitalofotherbanksandfinancialinstitutions.

Tier2capital,whichincludessomereservessuchastheelementofthefairvaluereserverelatingto unrealisedgainsonequityinstrumentsclassifiedasavailable-for-sale.

Variouslimitsareappliedtoelementsofthecapitalbase,andotherassetsandliabilitiesaregivingvarious classificationssuchasclaimsongovernment,claimsonthecentralBankandcontingentliabilitiesandrisk- weightedassetsaredeterminedaccordingtospecifiedrequirementsthatseektoreflectthevaryinglevelsof riskattachedtoassetsandoff-balancesheetexposures.

TheBank'spolicyistomaintainastrongcapitalbasesoastomaintaininvestor,andmarketconfidenceandto sustainfuturedevelopmentofthebusiness.Theimpactofthelevelofcapitalonshareholders'returnisalso takenintoconsideration,andtheBankrecognisestheneedtomaintainabalancebetweenthehigher returnsthatmightbepossiblewithgreatergearingandtheadvantagesandsecurityaffordedbyasound capitalposition.

TheBankhascompliedwithallexternallyimposedcapitalrequirementsthroughouttheperiods.

TherehavebeennomaterialchangesintheBank'smanagementofcapitalduringtheperiods.

StandardCharteredBankGhanaLimited 35. CONCENTRATIONOFGHANACEDIEQUIVALENTOFFOREIGNCURRENCY DENOMINATEDASSETS,LIABILITIESANDOFFBALANCESHEETITEMS

37. DIRECTORS'SHAREHOLDING TheDirectornamedbelowheldthefollowingnumberofsharesintheBankasat31December2008:

38. NUMBEROFSHARESINISSUE

(i) Dividendandnetassetspershare

Dividendandnetassetspersharearebasedon17,596,042(2007:17,596,042)ordinarysharesinissue duringtheyear.

RenounceableRightsIssueOfferCircular (ii) Basicanddilutedearningspershare Thecalculationofbasicanddilutedearningspershareat31December2008wasbasedontheprofit attributabletoordinaryshareholdersofGH¢33,187,000(2007:GH¢33,038,000)and17,596,042(2007: 17,596,042)sharesinissue.

38. NUMBEROFSHAREHOLDERS Thecompanyhad4,780ordinaryand1,041preferenceshareholdersat31December2008distributedas follows:

Thecompanyhad4,751ordinaryand1,043preferenceshareholdersat31December2007distributedas

StandardCharteredBankGhanaLimited Thecompanyhad4,619ordinaryand1,022preferenceshareholdersat31December2006distributedas follows:

39. EMPLOYEEBENEFITS

(I) DefinedContributionPlans

(a) SocialSecurity Underanationalpensionscheme,thecompanycontributes12.5%ofemployee'sbasicsalarytotheSocial SecurityandNationalInsuranceTrust(SSNIT)foremployeepensions.TheBank'sobligationislimitedtothe relevantcontributions,andthesehavebeenrecognizedinthefinancialstatements.Thepensionliabilities andobligations,however,restwithSSNIT.

(b) ProvidentFund TheBankhasaprovidentfundschemeforstaffunderwhichtheBankcontributes7%ofstaffbasicsalary. TheBank'sobligationsundertheplanarelimitedtotherelevantcontributionsandthesehavebeen recognisedinthefinancialstatements.

(ii) DefinedBenefitScheme

RetiredStaffMedicalBenefit TheBankhasaschemetopaythemedicalcostofsomeretiredstaffandtheirspousesfromthedateof retirementtilldeath.Underthescheme,theBankpaysthemedicalcostofeligiblepersonswithacostcapof GH¢500perperson.Theschemeisaccountedforasadefinedbenefitscheme.Thetotalprovisioncarriedin thebalancesheetinrespectofthisschemewasGH¢762,516(2007:GH¢791,397).Theschemewillbe actuariallyvaluedwithinaperiodof3-5years.

40. COMPARATIVEINFORMATION

Thecomparativefinancialinformation,whereconsiderednecessary,havebeenreclassifiedtoachieve consistencywithpresentationofcurrentyearfigures.

41. FAIRVALUEOFFINANCIALASSETSANDLIABILITIES

ThefollowingsetsouttheBank'sbasisofestablishingfairvaluesofthefinancialinstrumentsdisclosedunder note16.

RenounceableRightsIssueOfferCircular Cashandbalancesatcentralbanks

Thefairvalueoffloatingrateplacementsandovernightdepositsistheircarryingamounts.Theestimated fairvalueoffixedinterestbearingdepositsisbasedondiscountedcashflowsusingtheprevailingmoney- marketratesfordebtswithasimilarcreditriskandremainingmaturity.

Loansandadvancestocustomers

Loansandadvancesarenetofprovisionsforimpairment.Theestimatedfairvalueofloansandadvances representsthediscountedamountofestimatedfuturecashflowsexpectedtobereceived.Expectedcash flowsarediscountedatcurrentmarketratestodeterminefairvalue.

Investmentsecurities

Investmentsecuritieswithobservablemarketprices,includingdebtarefairvaluedusingthatinformation. Equityinstrumentsheldthatdonothaveobservablemarketdataarepresentedatcost.Debtsecuritiesthat donothaveobservablemarketdataarefairvaluedbyeitherdiscountingcashflowsusingtheprevailing marketratesfordebtswithasimilarcreditriskandremainingmaturityorusingquotedmarketpricesfor securitieswithsimilarcredit,maturityandyieldcharacteristics.

Depositsandborrowings

Theestimatedfairvalueofdepositswithnostatedmaturityistheamountrepayableondemand.The estimatedfairvalueoffixedinterestbearingdepositsandotherborrowingswithoutquotedmarketpricesis basedondiscountingcashflowsusingtheprevailingmarketratesfordebtswithasimilarcreditriskand remainingmaturity.

Debtsecuritiesinissuesubordinatedliabilitiesandotherborrowedfunds

Theaggregatefairvaluesarecalculatedbasedonquotedmarketprices.Forthosenoteswerequotedmarket pricesarenotavailable,adiscountedcashflowmodelisusedbasedonacurrentmarketrelatedyieldcurve appropriatefortheremainingtermofmaturity.

Derivatives

Thefairvalueofderivativesisbasedondiscountedcashflowsofusingobservablemarketquotesofsimilar creditriskandmaturity.

StandardCharteredBankGhanaLimited RenounceableRightsIssueOfferCircular 3.25 Ratios PerformanceIndicators

FinancialRatios

AssetQuality

Liquidity

Earnings 2008 2007 2006

Netincomebeforetax/totalassets 4% 6% 7% Netincomebeforetax/equity 49% 49% 58% Netinterestincome/totalassets 8% 8% 8% Interestexpense/fundingliabilities 4% 5% 3% Staffcosts/Totalcosts 47% 48% 47% Depreciation/Totalcosts 2% 3% 3%

Capital

StandardCharteredBankGhanaLimited 4.1 Introduction InFebruary2008,theBoGissuedadirectivetoallbanksthatrequireaClass1Licensetoraisetheir statedcapitaltoGH¢60million.Asaresultofthisdirectiveforeignownedbanksarerequiredto achievethislevelofcapitalizationbytheendofDecember2009whilstlocalbankshaveuntil December2010toreachGH¢25millionanduntilDecember2012toreachGH¢60million.

InlinewithSCBGL'sstrategyandtheBoGdirectivestorecapitalize,theshareholdersoftheBank authorisedtheDirectorstoraisetheBank'sstatedcapitaltoGH¢60million.

4.2 StandardCharteredBankGhanaLimited'sOverallStrategicObjectives SCBGLhasover700peopleemployedinmorethan21strategiclocations.TheBankiswell positionedtoachievesignificantgrowthfromopportunitiesintheGhanaianmarket.TheBank aspiresto: ? bethecorebanktoourwholesalebankingclients; ? consistentlydeliverexcellentconsumerbankingservicebyprovidingfinancial solutionswhichmeetourcustomers'evolvingneeds;and ? Betherightpartnertoitsregulatorsandthecommunitiesitwhichitworks.

Toachieveitsgoals,theBankisbuildingitsfoundationforacceleratedgrowthby: ? Deepeningrelationshipswithwholesalebankingclients,providingthemwitha broaderrangeofsolutionsandservices; ? Deepeningrelationshipswithconsumerbankingcustomersbyincreasingthe averagenumberofproductsandservicesboughtbyeachcustomer;and ? Continuingtodriveperformancethroughproductivityandengagement.

4.3 ExpectedUseofFunds TheproceedsfromtheOfferwillenabletheBanktocomplywiththeBoG'sdirectivetorecapitalize whilestrengtheningtheBank'sworkingcapitalasitseekstoincreaseitsgrowthpotentialinthe wholesaleandconsumerbankingsegments.

Exhibit19summarizesSCBGL'sproposeduseoftheOfferproceeds:

UseofFunds Estimated Amount (GH¢ ‘000) TradeLoansandContingents 35,000 InvestmentinLiquidAssets 12,000 OfferExpenses 1,000 Total 48,000 Exhibit19:UseofOfferProceeds

RenounceableRightsIssueOfferCircular StandardCharteredBankGhanaLimited 5.2 Assumptions STANDARDCHARTEREDBANKGHANALIMITED ASSUMPTIONSUNDERLYINGFORECASTANDPROJECTIONOFTHEFINANCIALS2009 – 2011

SCBGL'sfinancialprojectionshavebeendevelopedonthepremisethattheGovernmentofGhana's monetaryandfiscalpolicywilllargelybegearedtowardsensuringmacroeconomicstability, developmentandrevenuegenerationinadditiontodisciplinedgovernmentspending.Italsotakes intoconsiderationthatthecompanywillbeabletocarryoutitsstrategicplantoenableittogrow businessinitskeytargetsegments.

Someofthematerialfactorsthathavebeentakenintoconsiderationasunderlyingassumptions fortheperiod2009to2011toformalizetheprojectionsinclude: ? Nomaterialregulatorychanges-thisincludesmattersrelevanttobanking,taxationand generalbusinessregulation; ? GhanaachievespositiveGDPgrowth; ? Ghanacontinuestohavesocialstabilityanddeepeningdemocracy;and ? GovernmentofGhanacontinuesitseffortsinaddressingthefiscalandcurrentaccount deficitsanddecliningforeignexchangereserves.

Theforecastshouldbereadinconjunctionwiththedisclaimeronpage1ofthisCircular.

InterestIncomeandEarningAssets SCBGLexpectsinterestincometoincreaseby25%between2008and2009havingrestructuredits balancesheetin2008toensureappropriatepricingforriskandcostoffunds.AttheendofJune 2009,SCBGLreportedinterestincomewasGH¢66.6million,representing48%oftheprojected interestincome.Itisexpectedthattheremaining52%oftheprojectedinterestincomewillbe generatedinthesecondhalfoftheyearinlinewiththeobservedtrendinthepast,andasasset volumesbuildup.

In2010and2011,asinterestratesandinflationeasedownwards,interestincomeisexpectedto increaseby18%and16%respectively.

InterestincomeisexpectedtobedrivenbyincomefrominvestmentsinGovernmentsecuritiesand bonds,interestfromcorporateloansandadvancesandconsumerloansandadvances.

1. InvestmentsinGovernmentSecuritiesandBonds IncomefrominvestmentinGovernmentsecuritiesandbondsisexpectedtogrowby25%between 2008and2009.BytheendofJune2009,53%oftheprojectedincomefor2009hasbeenachieved. Theremaining47%isexpectedtobeachievedduringthesecondhalfoftheyear.

In2010and2011,incomefromtheseinstrumentsisexpectedtogrowby16%and14%respectively. Thisgrowthwillbesupportedby15%and12%growthinvolumes.

2. CorporateLoansandAdvances Incomefromcorporateloansandadvancesisexpectedtoincreaseby25%between2008and2009. 59%oftheprojectedincomefromcorporateloansandadvanceshasalreadybeenachievedinthe firsthalfoftheyear.Itisexpectedthattheremaining41%willbeachievedinthesecondhalfofthe year.

Theprojectedgrowthof20%and17%incorporateloansandadvancesfor2010and2011 respectively,isexpectedtodrivetheincomegrowthof32%and30%astheincreasedcapitalenables theBankdobiggerdeals.Wearealsopositioningourselvestotakeadvantageoftheopportunities intheemergingoilsector.

RenounceableRightsIssueOfferCircular 3. ConsumerLoansandAdvances Interestincomefromconsumerloansandadvancesisprojectedtoincreaseby25%in2009 comparedto2008.AttheendofJune2009,43%oftheprojectedinterestincomehasbeen achieved.Itisexpectedthatasinterestratescomedowninthesecondhalfoftheyear,asset volumeswillpickup,andtheremaining57%oftheprojectedincomewillbeachieved.

For2010and2011,projectedgrowthininterestincomefromconsumerloansandadvancesis expectedtoincreaseby15%and13%respectively.Totalconsumerloansandadvancesareexpected togrowby11%and8%in2010and2011respectively.Theproductsexpectedtodrivethisgrowth strategyareloansforSME,unsecuredloansandinstalmentloans.

InterestExpenseandInterestBearingLiabilities Interestexpenseisexpectedtoincreaseby24%between2008and2009.38%ofthisprojected increasehasbeenachievedinthefirsthalfoftheyear.Ascompetitionpressuresplusmarket dynamicscontinuetoincreasecostoffunds,theremaining62%willbeachievedinthesecondhalfof theyearwiththeexpectedgrowthinliabilities.

In2010and2011,asdemandforwholesaledepositsreducesasaresultoftheincreasedcapital, interestexpenseisprojectedtoincreaseby17%and15%respectively. InterestexpensewillcontinuetobedrivenbyvolumegrowthinindividualandSMEdeposits, corporatedepositsandotherborrowings.

1. IndividualandSMEDeposits Between2008and2009,interestexpenseonindividualandSMEdepositsisexpectedtoincreaseby 26%.57%ofthishasbeenincurredattheendofthefirsthalfoftheyear,andtheremaining43%will beincurredduringthesecondhalfoftheyear.In2010and2011astheBankcontinuestopay competitiveinterestratesandasconsumerdepositincreasesby10%and8%respectively,interest expenseisprojectedtoincreaseby16%and14%.

2. CorporateDepositsandOtherBorrowings Corporatedepositsaremadeupoffixeddepositsandcallaccounts.Theseproductsareprice sensitive,theywillthereforebypricedatapremiumtoattractmoreofsuchdeposits. Between2008and2009,interestexpenseoncorporatedepositsandotherborrowingsisexpected toincreaseby23%.32%ofthisprojectionhasbeenincurredattheendofJune2009.Theremaining 68%willbeincurredduringthesecondhalfoftheyear.AsproceedsfromtheOfferareputtowork, theneedforotherborrowingswillreduceaswellasitsassociatedinterestexpense.

In2010and2011,interestexpenseoncorporatedepositsandotherborrowingswillincreaseby17% and15%respectively,withvolumegrowthof10%and8%.

Non-interestincome Managementhasmadeastrategicdecisiontoincreasetheproportionofnon-interestinourincome mix.Thisistoreducethevariabilityininterestincomeasinterestratesmoveupanddown.Non- interestincomeisthereforeexpectedtoincreaseby34%in2009.69%ofthisprojectionhasbeen achievedasattheendofJune2009.Theremaining31%isexpectedtobeachievedinthesecond halfoftheyear.

In2010and2011,non-interestincomeisexpectedtogrowby20%and19%inlinewiththeexpected increaseinthevolumeoftransactions. Non-interestincomeisprincipallymadeupofforexrevenue,tradefeesandCommissionon Turnover(“COT”).

StandardCharteredBankGhanaLimited 1. Forexrevenue Forexrevenuefor2009isexpectedtoincreaseby51%and50%ofthisprojectionhasbeenachieved attheendofJune2009.Theremaining50%isexpectedtobeachievedinthesecondhalfoftheyear asbusinessactivitypicksuptowardsthefestiveseason.

In2010and2011,forexrevenueisexpectedtoincreaseby18%and17%respectivelyasweposition ourselvestotakeadvantageofopportunitiesintheoilsector.

2. Tradefeesandcommissiononturnover TradefeesandCOTisexpectedtoincreaseby20%in2009.Already87%ofthisyear'sprojections havebeenachievedinthefirsthalfoftheyear.Theremaining13%isexpectedtobeachievedduring thesecondhalfoftheyear.

In2010and2011,tradefeesandCOTisexpectedtoincreaseby22%and20%respectivelyas ConsumerBankinggrowsitstradebusinesswiththeSMEsandtransactionvolumealsoincreases.

OperatingExpenses Includedinoperatingexpensesfor2008areone-offcoststotallingapproximatelyGH¢8million whichwillnotberepeatedin2009.Operatingexpensesareexpectedtoincreasemarginallyby3% between2008and2009.However,discountingtheone-offcosts,therealincreaseis16%.56%of thisprojectionhasbeenincurredduringthefirsthalfoftheyear.Operatingexpensesareprincipally madeupofstaffcosts,premisesandequipmentcostsandothercostofoperationssuchas communication,advertising,stationeryetc.

In2010and2011,operatingexpensesareexpectedtogrowby15%and13%respectivelyinlinewith inflation.Thekeycomponentsofoperatingexpensesare:

1. Staffcosts Staffcostsaremadeupofsalaries,socialsecuritycontributions,training,medicalexpenses,etc.In 2009,staffcostsareexpectedtoincreaseby3%.

In2010and2011,staffcostsareexpectedtoincreasebyanaverageof18%assalariesarealignedto themarket.

2. PremisesandEquipmentcosts Premisescostsaremadeupofdepreciationforlandedproperty,utilities,costofsecurity,etc,whilst equipmentcostsincludesdepreciationforofficeequipment,motorvehicles,furnitureandfittings, etc.Premisesandequipmentcostsareexpectedtoincreasemarginallyby3%in2009.46%ofthis projectedexpenditurehasbeenincurredattheendofthefirsthalfoftheyear.Theremaining54% willbeincurredduringthesecondhalfoftheyear.

Projectedgrowthin2010and2011is12%and10%respectively.

3. Othercosts Othercostsaremadeupofcostofoperationssuchastelephoneandfax,advertising,travelling, stationery,etc.For2009,othercostswereprojectedtoincreasemarginallyby3%.63%ofthis projectionhasbeenincurredinthefirsthalf,whichincludesaone-offexpenditureonasystems upgrade.Theremaining37%willbeincurredduringthesecondhalfoftheyear.

Increasesin2010and2011areexpectedtoaverage10%.

RenounceableRightsIssueOfferCircular 5.3 ConsolidatedFinancialProjections

STANDARDCHARTEREDBANKGHANALIMITED

FORECASTSANDPROJECTIONS PROFITANDLOSSACCOUNTFORTHEFOURYEARSTO31DECEMBER2011ST

ActualJune'09 2009 2010 2011 GH¢'000 GH¢'000 GH¢'000 GH¢'000

Interestincome 66,616 138,003 162,783 189,379 Interestexpense (16,170) (42,203) (49,276) (56,549) Netinterestincome 50,446 95,800 113,507 132,830

Non-interestincome 37,589 54,600 65,634 77,792 NetRevenue 88,035 150,400 179,141 210,622

Operatingexpenses (40,994) (73,800) (84,870) (95,903) Operatingprofitbeforeimpairmentlossandtaxation 47,041 76,600 94,271 114,719 LoanImpairment (6,065) Credit/(charge)forbadanddoubtfuldebts (13,100) (15,603) (17,943) OperatingProfit 40,976 63,500 78,668 96,776

Taxation (10,244) (15,875) (19,667) (24,194) Profitaftertaxation 30,732 47,625 59,001 72,582

TransfertoStatutoryReserveFund (11,906) (14,750) (18,145) RetainedProfit 35,719 44,251 54,436

StandardCharteredBankGhanaLimited BALANCESHEETFORTHEFOURYEARSTO31DECEMBER2011ST

ActualJune2009 2009 2010 2011 GH¢'000 GH¢'000 GH¢'000 GH¢'000 Assets

Cash 209,207 207,723 196,877 198,846 Governmentsecurities 32,840 198,173 227,899 255,247 Duefromotherbanksandfinancialinstitutions 82,398 119,796 117,006 122,856 Loansandadvances 475,916 578,389 680,358 782,412 Otherassets 233,277 28,605 27,294 25,610 Totalassets 1,033,638 1,132,686 1,249,435 1,384,972

Equityandliabilities

Customerdeposits 760,378 801,634 881,797 952,341 Duetootherbanksandfinancialinstitutions 30,930 30,054 40,863 42,089 Borrowing - - - - Otherliabilities 142,620 133,822 121,169 138,015 TotalLiabilities 933,928 965,510 1,043,829 1,132,445

Equity Statedcapital 13,131 60,000 60,000 60,000 Incomesurplus 46,187 61,748 85,031 113,362 Statutoryreserve 30,217 42,123 56,873 75,019 Otherreserves 10,175 3,305 3,702 4,146 Shareholders'funds 99,710 167,177 205,606 252,527

Totalliabilitiesandshareholders'funds 1,033,638 1,132,686 1,249,435 1,384,971

RenounceableRightsIssueOfferCircular CASHFLOWSTATEMENTFORTHETHREEYEARSTO31DECEMBER2011ST

2009 2010 2011 GH¢'000 GH¢'000 GH¢'000

Profitbeforetaxfortheperiod 63,500 78,668 96,776 Adjustmentsfor: Depreciationandamortisation 1,758 1,850 2,120 Netinterestincome (95,800) (113,507) (132,830) (30,542) (32,989) (33,935)

Changeininvestment (45,732) (29,726) (27,348) Changeinloansandadvances (118,051) (101,970) (102,054) Changeinotherassets 80,770 4,811 5,434 Changeincustomerdeposits 59,343 80,163 70,544 Changeinamountsduetootherbanks 14,663 10,809 1,226 Changeininterestpayable,otherliabilitiesandprovisions 35,173 644 33,316 Changeinborrowing (28,651) - - Interestincome 138,003 162,783 189,379 Interestexpense (42,203) (49,276) (56,549) 62,774 45,250 80,014

Incometaxpaid (15,875) (19,667) (24,194) Netcashusedfromoperatingactivities 46,899 25,583 55,820

Cashflowsfrominvestingactivities Purchaseofpropertyandequipment (3,250) (3,500) (3,750) Proceedsfromsaleofinvestment 1,750 - - Netcashusedininvestingactivities (1,500) (3,500) (3,750)

Cashflowsfromfinancingactivities Dividendspaid (29,039) (35,719) (44,251) Proceedsfromrightsissue 46,869 - - Netcashusedinfinancingactivities 17,830 (35,719) (44,251)

Netincreaseincashandcashequivalents 63,229 (13,636) 7,819

Analysisofchangesincashandcashequivalentsduringtheyear Cashandcashequivalentsat1January 264,290 327,519 313,883 Netincreaseincashandcashequivalents 63,229 (13,636) 7,819 Cashandcashequivalentsat31December 327,519 313,883 321,702

Analysisofcashandcashequivalentsduringtheyear CashandbalanceswithBankofGhana 207,723 196,877 198,846 Balanceswithotherbanks 119,796 117,006 122,856 327,519 313,883 321,702

StandardCharteredBankGhanaLimited 6.1 OverviewoftheGhanaStockExchange TheGSEwasincorporatedasacompanylimitedbyguaranteeinJuly1989withtradingcommencing twoyearslateronNovember12,1990.TheGSEisgovernedbyathirteen(13)memberCouncil whichrepresentstheLicensedDealingMembers(LDMs),listedcompanies,banks,moneymarket institutions,insurancecompaniesandthegeneralpublic.TheoperationsoftheGSEareregulatedby theSEC.CriteriaforlistingontheGSEincludecapitaladequacy,profitability,spreadofshares,years ofexistenceandmanagementefficiency.

6.2 DevelopmentsandTrends TheGSEstartedoperatingwith11listedcompanies;thelistincreasedto26listedstocks,4corporate bondsand22governmentbonds.AsofOctober2009,theExchangehad35listedequities,2 corporatebondsandanumberofGovernmentsecurities.Theyear2008sawthelistingofthreenew equitiesontheFirstOfficialListoftheGSEandtworightsissues.SICInsuranceCompanyLimited,UT FinancialServicesLimitedandGoldenStarResourcesLimitedwerelistedontotheboursewhileHFC Bank(Ghana)LimitedandEcobankTransnationalCorporationconductedrightsissues.Thelatter wenttothemarketwiththenation'sfirsthybridoffer.

In2007,theCentralSecuritiesDepositoryAct,2007(Act733)waspassedpermittingtheissuebya companyofuncertificatedordematerialisedshareswhereitsshareholdersandboardofdirectors haveauthorisedthis.ThepassingofthelawpavedthewayfortheExchangetoachieveseveral milestonesinitsdevelopment.Thesemilestonesinclude:

? ThecompletionoftheAutomatedTradingSystemProject; ? TheincorporationandoperationoftheGSESecuritiesDepositoryCompanyLtd; ? TheinstallationofaClearingandSettlementSystem;and ? TheestablishmentofaClearingHouse.

ThefirstofthemilestoneswaspartoftheGovernmentofGhana'sEconomicManagementand CapacityBuilding(EMCB)Project,whichprovidedfundingforit.

6.3 PerformanceoftheGSE TheGSEhasperformedwelloverthelastfiveyears,exceptfor2005.Thebourse'sbenchmarkindex, theAllShareIndex,returnedanalltimehighof155%in2003.Thisstronggrowthcontinuedin2004, drivenbyfournewlistings,tworightsissuesandtwobonusissuesincludingtheinitialpublic offerings(“IPOs”)ofCALBankandBensoOilPalmPlantation,whichwereoversubscribedby342% and144%respectively.TheGSEAllShareIndexincreasedby91%to6,799pointsin2004butdipped by30%inthefollowingyear.

Theboursestarteditsrecoveryin2006followingthelistingsofEcobankTransnationalIncorporated, EcobankGhana,AyrtonDrugsandTransolwhichpushedtheequitiescomponentofthemarketup by22%resultinginamarketcapitalizationofGH¢11billionbytheendof2006.Themarket continueditsrecoveryin2007witha32%gain,drivenbyarightsissueforGhanaCommercialBank inthefirsthalfoftheyearandthreeIPOsinthesecondhalf.Generallydrivenbystrongoperating resultsoflistedcompanies,theimpressivegrowthintheGSEAllShareIndexcontinuedthrough 2008,postinga58.1%gainfortheyear.However,marketpricesbegantodeclineatthebeginningof 2009asaresultofweakfundamentals,oversellingbyforeignshareholdersandsomeprofittaking. Inthefirstquarterof2009,thebenchmarkindexdipped11.4%comparedtoagainof18.9%inthe sameperiodofthepreviousyear.AsofthedateofthisCircular,thebenchmarkindexhadfallenby 47.2%.BelowisasummaryoftheGSE'sperformancesince2003to28October2009.th 5

5Source:ICSecuritiesResearch

RenounceableRightsIssueOfferCircular 6

Dec-08 Dec-07 Dec-06 Dec-05 Dec-04 Dec-03 GSEAllShareIndex 10,431.6 6,599.8 5,006.0 4,769.0 6,798.6 3,553.4 GSEAllShareIndex(y-o-y) 58.1% 31.5% 5.0% -29.9% 91.3% 154.7% MarketCapitalisation(GH¢million) 17,844 12,370 11,250 9,186 9,761 1,262 ValueTraded(GH¢million) 380,170,327 140,710,000 47,599,000 46,436,000 65,590,000 38,930,000 VolumeTraded 544,024,105 287,221,700 98,285,000 814,000,000 104,349,300 96,330,000 AverageDailyValue 1,532,947 569,576 192,709 239,361 425,909 252,792 AverageDailyVolume 2,193,646 1,162,841 397,919 419,588 677,593 625,519 Sources:GSEFactbook2008,ICSecuritiesResearch Exhibit21:StatisticalsummaryoftheGSE

6.4 Outlook TheGSEhasrecentlyexperiencedsomelevelofcorrectionasstockpriceshaveretreatedtolevels thatreflecttheirfundamentalsandthenecessityformanyinstitutionalshareholderstoliquidate theirrespectivepositions.Thefallinstockpricesshouldattractbargainhunterswhoarelookingto profitfromabottomedoutmarket.Theintroductionoftheautomatedtradingsystemshouldalso improvetheefficiencyofthemarketandincreasetradingvolumes.Thesefactorscoupledwithnew listingsexpectedfromthebankingandinsurancesectors,wherefirmsareexpectedtoincreasetheir capital,areexpectedtoincreaseactivityonthebourseinthenearterm.

6Source:ICSecuritiesResearch

StandardCharteredBankGhanaLimited 7.1 Application

AQualifyingApplicantisanynaturalpersonwhois18yearsorover,oracorporation,partnershipor otherunincorporatedassociationswhoareresident/incorporatedinGhanaorsomeotherstate,or country(andincludingaQualifyingSCBGLShareholder)providedthattheoffertoandacceptance bysuchanapplicantofthisOfferisnotincontraventionofthelawsofeitherthatstateorcountry.

QualifyingShareholders QualifyingSCBGLShareholdersareentitledtosubscribetoone(1)newordinaryshareforevery 10.6309ordinarysharesregisteredintheirnameasatthecloseofbusinesson4th November2009 underthisOffer.

QualifyingShareholdersmaytakeanyoneofthefollowingactionsunderthisOffer:

a) FullysubscribetotheirRightsunderthisOffer:QualifyingSCBGLShareholderscompletethe ApplicationFormandpayfortheirentireallocationunderthisOffer,returningsametothe ReceivingAgentsnotlaterthan5pmon1December2009.st

QualifyingSCBGLShareholdersexercisingthisoptionmustcompleteSectionAofthe ApplicationForm,inaccordancewiththeinstructionssetoutundertheenclosedGuideto CompletingtheApplication.

b) FullysubscribefortheirRightsANDapplyforadditionalsharesoutsideofwhattheyare entitledtoundertheOffer:Inadditionto1aabove,QualifyingSCBGLShareholdersmayapply tosubscribetoadditionalshares(extrasharesabovewhattheyareentitledtounderthisOffer) andpayforsuchadditionalshares,returningthedulycompletedApplicationFormandpayment coveringboththeirRightsandadditionalsharesappliedfortotheReceivingAgentsnotlater than5pm1December2009.st

QualifyingShareholderschoosingthisoptionmustcompleteSectionAoftheApplicationForm, inaccordancewiththeinstructionssetoutundertheenclosedGuidetoCompletingthe Application.

c) PartiallysubscribetotheirRightsonly:QualifyingSCBGLShareholdersmayapplyforonlypart ofthesharestheyareentitledtounderthisOfferandreturnthedulycompletedApplication FormtogetherwithpaymenttotheReceivingAgentsnotlaterthan5pmon1December2009.st QualifyingSCBGLShareholdersmaytakenofurtheractionontheirremainingRightsunderthe OfferandempowertheDirectorsoftheBanktoallotsuchunsubscribedportionoftheirRights astheDirectorsdeemfit.

QualifyingShareholdersmustcompleteSectionsAandBoftheApplicationForm,inaccordance withtheinstructionssetoutundertheGuidetoCompletingtheApplicationForm.

d) PartiallysubscribetotheirRightsundertheOfferandrenouncetheirunsubscribedRightsin favourofQualifyingthirdparties,whomayormaynotbeshareholdersofSCBGL (Renouncees):QualifyingSCBGLShareholdersmayapplyforonlypartofthesharestheyare entitledtounderthisOffer,renouncingtheremainderoftheirRightsinfavourofQualifying thirdpartieswhonowhavetoapplyforandpayforthoseshares.TheApplicationForm completedbyboththeQualifyingShareholderandtheRenouncee,togetherwithpaymentfor thesharesmustbereturnedtotheReceivingAgentsnotlaterthan5pmon1December2009.st

QualifyingSCBGLShareholderschoosingthisoptionmustcompleteSectionsAandB,whilst eachnamedRenounceemustcompleteacopyofSectionCoftheApplicationFormin accordancewiththeinstructionssetoutundertheGuidetoCompletingtheApplication.

RenounceableRightsIssueOfferCircular ShouldQualifyingSCBGLShareholdersdesiretorenouncetheremainderoftheirRightsinfavour ofmorethanoneperson,theyshouldstatethenumberofsharestobeallottedtoeach RenounceeonaseparaterowinSectionBoftheApplicationForm.ThecompletedSectionsA,B andCoftheApplicationFormtogetherwithpaymentforallsharesappliedforshouldthenbe lodgedwiththeReceivingAgentsnotlaterthan5pmon1December2009.st

e) RenouncealltheirRightsinfavourofqualifyingthirdparties,whomayormaynotbe shareholdersofSCBGL:QualifyingSCBGLShareholdersmaydecidenottopartakeintheOffer andmayrenouncealltheirRightsunderthisOfferinfavourofRenounceeswhomayormaynot beshareholdersofSCBGL.TheRenounceesmustcompleteandreturntheApplicationForm togetherwithpaymentforthesharesbeingappliedfortotheReceivingAgentsnotlaterthan5 pmon1December2009.st

QualifyingSCBGLShareholderschoosingthisoptionmustcompleteSectionsAandB,whilst eachnamedRenounceeunderSectionBmustcompleteacopyofSectionCoftheApplication ForminaccordancewiththeinstructionssetoutundertheGuidetoCompletingtheApplication Form.

ShouldQualifyingSCBGLShareholderswanttorenouncetheirRightsinfavourofmorethanone person,theyshouldstatethenumberofsharestobeallottedtoeachRenounceeonaseparate rowinSectionBoftheApplicationForm.

f) Takenoaction:QualifyingSCBGLShareholderswhochoosenottoapplyforsharesunderthis Offer,orwhofailtomakepaymentforthesharestheyhaveappliedforunderthisOffer,orwho failtomeetthedeadlineof5pmon1December2009forreturningtheApplicationFormandst makingpaymenttotheReceivingAgents,maybedeemedtohavenottakenanyactionunder thisOffer.QualifyingSCBGLShareholderswhotakenoactionunderthesetermsempowerthe DirectorsoftheBanktoallotsuchunsubscribedRightsastheDirectorsdeemfit.

7.2 OffertoPurchaseShares

a)Asanapplicant,youoffertosubscribetothenumberofsharesindicatedonyourApplication FormunderthetermsandconditionsofthisOfferandonthebasisoftheinformationsetoutin thisDocumentandsubjecttotheRegulationsofSCBGL.

b) Youagreethatyourapplicationtoacquiresharescannotberevokedafter1December2009orst suchlaterdateastheDirectorsandAdvisorsmayagree,andpromisethatanycheque,banker's draftormoneyorpostalorderwillbehonouredonfirstpresentationandthatthisparagraph constitutesanagreementbetweenyouandSCBGL.Itbecomesbindingwhenyourapplicationis posted,orinthecaseofdeliverybyhand,receivedbytheReceivingAgents.However,theBank willnotbeheldliableifyouuseawrongaddressinposting.Youmustpayallbankcommissions, transfersandotherbankchargesrelatedtoyourapplication.

c)AthumbprintonanApplicationFormwillbeacceptedinsteadofasignaturethereononlyifitis dulycertifiedinaccordancewiththeLawsofGhana.

d) IfyourApplicationFormisnotcompletedcorrectlyorisamended,orifanycheque,banker's draft,moneyorpostalorderisfoundtobelessthantheamountstatedonyourApplication Form,itmaystillbetreatedasvalid.Insuchcase,theBank'sdecisionastowhethertotreatthe applicationasvalid,andhowtoconstrue,amendorcompleteitshallbefinal.Youwillnot, however,betreatedashavingappliedtopurchaseanumberofshareswhich,whenmultiplied bytheofferprice,givesavaluegreaterthantheamountremitted.

StandardCharteredBankGhanaLimited e) AnapplicationmayberejectedinwholeorinpartatthediscretionoftheAdvisorsand ManagementofSCBGLiftheapplicationisincompleteorillegible,orifitisdeterminedthatthe applicantisnoteligibletoparticipateinthisoffer.

7.3 AcceptanceoftheOffer

a) Acceptanceofyourofferwillbemade(ifyourapplicationisreceived,valid,processedandnot rejected)bynotifyingtheSECandGSEofthebasisofallocationandbynotifyingacceptanceto theReceivingAgents.

b) Acceptanceofyouroffermaybeofthewholeoranypartthereof.

c) Ifyourapplicationtopurchasesharesisaccepted(inwholeorinpart),therewillbeabinding contractunderwhichyouwillberequiredtopurchasethesharesinrespectofwhichyour applicationhasbeenaccepted.

7.4PaymentforShares

a) Youundertaketopaythepurchasepriceofthesharesinrespectofwhichyourapplicationis accepted.Thechequeorbanker'sdraftorotherremittancesmaybepresentedforpayment beforeacceptanceofyourapplication,butthiswillnotconstituteacceptanceofyour application,eitherinwholeorinpart.

b) Inthecaseofexcessapplications,ifyourapplicationisinvalid,rejectedornotacceptedinfull,or iftheamountoftheapplicationdividedbytheofferpricedoesnotresultinawholenumberof shares,theproceedsofthechequeorotherremittancesortheunusedbalanceofthose proceeds(asthecasemaybe)willberefundedtoyouwithoutinterest.

c) Iftheremittancesarenothonouredonfirstpresentation,thenatanytimeuntiltheBankhas receivedclearedfundsinrespectofyourapplication,theAdvisors,onbehalfofSCBGLmay terminatetheagreementtopurchasethatshare.Theterminationwillbeeffectedbynotifying theReceivingAgentwhomyousubmittedyourapplicationto.

7.5Renunciation

a) TherighttosubscribetothesharesundertheOffermayberenouncedinwholeorinpartonlyby completingtheApplicationForminaccordancewiththeinstructionstherein,orbytakingno action.

b) QualifyingSCBGLShareholders,whowishtopurchasesomeoftheirRightsandtorenouncethe remainderinfavourofadifferentpersonorpersons,maycompleteSectionsAandBofthe ApplicationForminaccordancewiththeinstructionsprovidedintheGuidetoCompletingthe ApplicationForm.

TheApplicationFormmustthenbelodgedwithanyoftheReceivingAgents,togetherwith paymentforthesharestobereceivednotlaterthan5pmon1December2009.st

7.6 ProcedureinRespectofRightsnotTakenuporRenounced

IfaproperlycompletedApplicationFormandpaymentinfullisnotreceivedby5pm1Decemberst 2009theRightswillbedeemedtohavebeendeclinedbytheshareholders.Theseshareswillthenbe availabletoshareholdersapplyingforextrasharesundertheOffer.

RenounceableRightsIssueOfferCircular InrespectofapplicationsforunsubscribedsharesalldulycompletedapplicationsfromQualifyingSCBGL ShareholdersandRenounceesforanyunsubscribedshareswillbesatisfied.Providedhoweverthatif applicationsforextrasharesaremorethantheavailablenumberofunsubscribedsharesundertheOffer,the directorsofSCBGLmayallocatefewerextrasharesthanappliedforbyeachapplicant,onthebasisofapro- rataallotment.

7.7 Warranties

Youwarrantthat:

a) Youarequalifiedtoapply;

b) Theapplicantonwhosebehalfyouareapplyingisqualifiedtoapply;

c) Youwillsubmitacompletedapplicationincludingallsupportingdocumentsrequiredunder thetermsofthisoffer;

d) Inmakingyourapplicationyouarenotrelyingonanyinformationorrepresentation concerningtheBanknotcontainedinthisdocument.Youagreethatnopersonresponsible forthisdocumentoranypartofitwillhaveliabilityforanysuchotherinformationor representation;

e) Ifanypersonsigning,ormakingathumbprintontheApplicationFormisnottheapplicant, thatpersonwarrantsthathe/shehasauthoritytodosoonbehalfoftheapplicantandthat thisauthorityisvestedinhimorher;

f) Iftheapplicantisotherthananaturalperson,thepersonsigningtheApplicationForm warrantsthathe/shehasauthoritytodosoonbehalfoftheapplicant. 7.8 SupplyandDisclosureofInformation TheBank,Directors,Advisorsandtheiragentsshallhavefullaccesstoallinformationrelatingto,or derivingfrom,thechequeorbanker'sdraftorotherremittanceaccompanyingyourapplicationand itsprocessing.IftheDirectorsortheiragentsrequestanyinformationaboutyourapplicationyou mustpromptlydiscloseittothem. 7.9 ListingofNewOrdinaryShares TheGSEhasgrantedpermissiontolistupto1,655,172newSCBGLsharestobeissuedunderthe OfferontheFirstOfficialListoftheGSE,inadditiontotheexisting17,596,042ordinaryshareslisted. Itisexpectedthatdealingsintheadditionalshareswillcommencealongsidetheexistingshareson theGSEby16th December2009. 7.10 IssuedShares SharesinrespectofthenewordinarysharestobeissuedpursuanttotheOfferwillbedepositedinto theapplicant'sdepositoryaccountby11th December2009. LettersofEntitlementwillbeissuedtothoseshareholderswhodonotholdasecuritiesdepository account,by11th December2009. 7.11 ImplicationsofDematerialisedSecurities AllQualifyingShareholderswillreceivelettersofallotmentindicatinghowmanysharestheyare entitledtounderthisOffer. ShareholderswithGSEdepositoryaccountsuponsuccessfullyexercisingtheirRightsaftertheoffer willhavetheiraccountscreditedwiththeirnewshares.

StandardCharteredBankGhanaLimited ShareholderswithoutGSEdepositoryaccountscanusetheirlettersofallotmenttoopenGSE depositoryaccountsattheofficesoftheReceivingAgentstotheoffer.Uponsuccessfullyexercising theirRights,theseshareholderswillhavetheiraccountscreditedwiththeirnewshares.

ShareholderswhodonothaveGSEdepositoryaccountsandfailtoopenanaccountduringtheoffer periodwillbeissuedwithlettersofentitlementatthecloseoftheoffer.Theseshareholderscanuse theseletterstoopenGSEdepositoryaccountsatanylicensedbrokerinGhana.

7.12 ExchangeControls

ExchangecontroliscurrentlygovernedbytheForeignExchangeAct2006,Act723whichlegalises paymentsinforeigncurrencytoandfromGhanabetweenresidentsandnon-residentsandbetween non-residentsmadethroughbanks.Furthermore,underBoGNoticeBG/GOV/SEC/2007/3there arenorestrictionsonthepurchaseofcapitalmarketinstrumentsbynon-residentssaveasstatedin 7.13below.

7.13 RestrictionsonOwnershipinBanks

TheBankingActimposescertainrestrictionsontheacquisitionanddisposalofsharesinabank. Undersection34oftheBankingAct,notificationtoandthepriorapprovaloftheBankofGhanais requiredforadirectorindirectacquisitionandthesaleordisposalofa “significantshareholding” in abank.A “significantshareholding” is “adirectorindirectholdinginabankwhichrepresents10% ormoreofthecapitalorofthevotingright[s]'orwhichmakesitpossibletoexerciseasignificant influenceoverthemanagementofabank.”

Furtherundersection35oftheBankingAct,theBankofGhanamaydisapproveaproposedtransfer ofsharesintheinterestofsoundandprudentmanagementofabankbypreventing:

(a) acquisitionofsharesbyapersonwho,intheopinionoftheBankofGhana,mayexercise influencetothedetrimentofthatbank;

(b) thesaleordisposalofsharesbyapromoteroradirector,orapersonwhohasacontrolling interestwhichcouldbedetrimentaltothatbank,or

© atransactioninanyothersituationinwhichtheBankofGhanahasreasontobelievethatthe (c)transactionwillbedetrimentaltothatbank.

7.14 Taxation ThefollowinginformationonGhanaiantaxlawisrelevantfortheOffer:

a) WithholdingTaxonDividend

UndercurrentGhanaiantaxlaw,alldividendpaymentsaresubjecttoadividendwithholdingtax of8%.Nofurthertaxispayableondividendsreceived.

b) CapitalGains

ThesecuritiesofacompanylistedontheGSEarecurrentlyexemptfromcapitalgainstaxin Ghanauntil2010.Nocapitalgainstaxwouldthereforebepayableonanyrealisationofcapital gainfromthesaleofsharesinSCBGLuptoNovember2010.

c) StampDuty

UndertheStampDutyAct,2005(Act689),atransferofsharesisexemptfromstampduty.

RenounceableRightsIssueOfferCircular d) CorporateTax

TheIssuerissubjecttocorporateincometaxof25%.

TheinformationprovidedunderthissectionorelsewhereinthisCircularisnotintendedtobe professionaladviceonthetaxconsequencesofpurchasinganysharesundertheOffer.Persons intendingtopurchasesharesundertheOfferareadvisedtoseekprofessionaltaxadviceastotax obligationsrelatingtoinvestinginthesharesissuedundertheOffer.

StandardCharteredBankGhanaLimited ICSECURITIES(GHANA)LIMITED 2,2nd RidgeLink,NorthRidge,Accra PostalAddress:PMBGP104,Accra TelephoneNo:+23321252621 FacsimileNo:+23321252517 Email: [email protected] Website: www.icsecurities.com

STANDARDCHARTEREDBANKGHANALIMITEDBRANCHES ABEKA ACCRAHIGHSTREET DANSOMAN AccraMeachamHouse AccraGroundFloor OppositeTheComm.Mkt. Abeka HeadOfficeBuilding, P.O .BoxDC215 P.O.Box768 HighStreet Phone:+23321308186 Phone:+233217011077 P.O .Box59 Fax:+23321238338 Phone:+23321664591-8 Fax:+23321667751

HARPERROAD KEJETIA KORLEDUDOR KumasiCentralPostOffice KumasiFormerUnicornHouse AccraGalloway HarperRoad Kejetia Ayalolo P.O .Box1930 P.O .Box563 P.O .Box2328 Phone:+2335124234-6 Phone:+2335123878 Phone:+23321666885 Fax:+2335123674 Fax:+2335126527 Fax:+23321666660

LEGON LIBERATIONROAD OBUASI LegonnearUniversity Opp.TUCBuilding ObuasiAGCMainGate, Bookshop,LegonCampus Accra Obuasi P.O .Box16 PMBTUC P.O .Box163 Phone:+23321500297 Phone:+23321666956 Phone:+23358240259 Fax:+23321501198 Fax:+23321543294 Fax:+23358240402

OPEIBEAHOUSE OSU RINGROADCENTRAL AirportAccra,LiberationRoad AdjacenttoFrankiesRestaurant 2BlocksfromBusStopRestaurant, OpeibeaHouse Osu RingRoad P.O .Box9031 PMB,Osu PMB,GPO Phone:+23321774195 Phone:+23321762816 Phone:+23321249223-5 Fax:+23321774195 Fax:+23321762817 Fax:+23321249221

SPINTEXROAD TAKORADIHARBOUR TAMALE Teshie-NunguaEst, TakoradiNearTimberExportDevt.Co. TamaleNearRivoli, SpintexRoad, P.O .Box253 Tamale P.O .BoxTN2051 Phone:+2333123064 P.O .Box102 Phone:+23321811201-3 Fax:+2333124861 Phone:+2337122578 Fax:+2338122366

TARKWA TEMA TUDU TarkwaAdjacentUACBuilding TemaOpp.TemaComm.Centre AccraOpp.MBCKojoThompsonRoad Tarkwa Tema P.O .Box729 P.O .Box98 P.O .Box20 Phone:+23321664524 Phone:+23336220210 Phone:+23322202520 Fax:+23321666755 Fax:+23336220292 Fax:+23322204393

ACHIMOTA TEMA MADINA P.O. Box768 TemaOpp.TemaComm.Centre P.O .Box59 Accra Tema Accra P.O .Box20 Phone:+23321410233 Phone:+23322202520 Phone:+233289546006 Fax:+23321410830 Fax:+23322204393 Fax:+23321522006

RenounceableRightsIssueOfferCircular ItisimportantthatthisApplicationFormbecorrectlycompleted.Applicantsindoubtshouldconsultanyofthe receivingagentsforassistance.TheOfferisopenfrom9amon10November2009andclosesat5pmon1December 2009.ApplicationsreceivedaftertheOfferhasclosedmaynotbeconsidered.

1 GeneralInstructionsforCompletingtheApplicationForm

PleasereadtheinstructionscarefullybeforecompletingtherelevantsectionsoftheApplication

Form. i) TherearevarioussectionstothisApplicationForm.Pleaseensureyoucompletealltherelevantand appropriatesectionsoftheApplicationForminaccordancewithyourchoices,andreturnthecompleted ApplicationFormtogetherwithpaymentforyoursubscriptiontotheReceivingAgents.

ii) UseblockcapitallettersincompletingtheApplicationFormandreturnthecompletedApplicationForm togetherwithpaymentforyoursubscriptiontoareceivingagentby5pmon1December2009.

iii) Onlypeopleover18yearsofagecanbuysharesintheirownname.Sharesmaybeboughtforachildbya parent,grandparentorguardianofthechildwhomaycompleteanotherApplicationFormtobuysharesin his/herownname.

iv) Power(s)ofattorneymustbeenclosedifanyoneissigningonbehalfofaQualifyingApplicantotherthana minor.

v) PhotocopiesofApplicationFormswillbeacceptedonlywhentheyareclearandlegible.Thesubmissionofa photocopiedApplicationFormpresumesthattheapplicantunderstandsandacceptsthetermsandconditions ofthisoffer. 2 SectionsoftheApplicationForm TheApplicationFormhasthefollowingsections:

SectionA TobecompletedbyallQualifyingSCBGLShareholderstakingpartintheOffer.Thissectionincludesaletter,giving eachshareholder'sentitlementinthisOffer.EachQualifyingSCBGLShareholdermustindicatetheirpreferred optionandupdatetheircontactinformationunderthissection.

SectionB TobecompletedbyallQualifyingSCBGLShareholdersrenouncingsomeoralltheirrights,givingdetailsofthe renouncee(s).

SectionC AcopyofthissectiontobecompletedbyeachRenounceenamedinSectionB.

3 GuidetoCompletingtheApplicationFormforQualifyingSCBGLShareholders a) ProvisionalAllotment

TheDirectorsofStandardCharteredBankGhanaLimited(“SCBGL”)haveprovisionallyallottedtoyouthenumber ofnewordinarysharessetoutundertheLetterofAllotmentinSectionAoftheApplicationFormtoyou.Your allotmentisintheproportionofone(1)newordinarysharesforeverytenpointsixthreezeronine(10.6309) ordinarysharesregisteredinyournameatthecloseofbusinesson4November2009.

Youmayacceptalloranynumberofthenewordinarysharesofferedyou,orrenounceyourrightsinfavourof anotherperson(s),ortakenoaction.

Ifyoudonotwishtopartakeinthisoffer,youdonothavetodoanything.KindlynotethatallQualifyingSCBGL Shareholderswhodonotsubmitby5pmon1December2009,adulycompletedApplicationFormwillbedeemed tohaveelectednottoparticipateinthisOffer.TheDirectorsofSCBGLwillallotthesharesdeclinedbysuch QualifyingSCBGLShareholdersastheydeemfit.

StandardCharteredBankGhanaLimited b) AvailableOptionsIfYouWishtoPartake

Youmaydoonlyone ofthefollowing:

1. Acceptallthenewsharesofferedyou:ifyouelectthisoption,kindlycompleteSectionA oftheApplication Form.

2. Acceptallthenewsharesofferedyouandapplyformoreshares:ifyouelectthisoption,kindlycomplete SectionA oftheApplicationForm.

3. Acceptpartofthenewsharesofferedyouandrenouncetheremainderinfavourofanotherparty(ies):ifyou electthisoption,kindlycomplete SectionsAandB oftheApplicationForm.HaveeachRenounceenamed underSectionB completeacopyofSectionC oftheApplicationForm.

4. AcceptpartofthenewsharesofferedyouandleavetheremaindertobeallottedbytheDirectorsofSCBGLin linewiththeOfferallotmentpolicy:ifyouelectthisoption,kindlycompleteSectionA oftheApplicationForm.

5. Renounceallthenewsharesofferedyouinfavourofanotherparty(ies):ifyouelectthisoption,kindly complete SectionsAandB oftheApplicationForm.EveryRenounceenamedunderSectionB mustcomplete acopyofSectionC oftheApplicationForm.

4 GuidetoCompletingtheApplicationFormforRenouncees Renouncees

IfaQualifyingSCBGLShareholderhasrenouncedaportionorallofhis/herrightsinyourfavourunderthisOfferby namingyouinSectionB oftheApplicationForm,youmustcompleteacopyofSectionC oftheApplicationForm.

YoumustprovideresponsesforallitemsofSectionC oftheApplicationForm,withtheexceptionofitem4(GSD AccountDetails)anditem5(DividendMandate),whichmustonlybecompletedifyouhaveanexistingGSD Accountasatthedateofyourapplication,orwishtoreceiveanydividendsdueyoudirectlyintothebankaccount detailsyouprovide.

GeneralinstructionsforcompletingSectionC oftheApplicationFormareasfollows:

APPLICATION Indicatethenumberofsharesrenouncedinyourfavour.

Pleasewritetheamountpayableinfigures(intheappropriatecurrency)forthetotalnumberofsharesyouhave appliedfor.RenounceesmustthenfillinthenameandaddressoftheRenouncer.

Box1. PersonalDetails Complete1withyoursurname(i.e.familyname)/companyname,allyourforenames(i.e.first/othernames)and thetitlebywhichyouareaddressed.Alsofillinyourdateofbirthorincorporation,yournationalityandcountryof residence.

Box2. IDNumber/CompanyRegistrationNumber ApplicantstotheOffermustprovideavalidID.ForthepurposesofthisOffer,avalidIDincludesanationalpassport, driver'slicenseandvoter'sIDcardforindividuals,andregistrationdocuments,RegistrarGeneral'sFormAorForm 3oradulyexecutedresolutionfromtheorganisationforinstitutions,clubsandotherbodies.

Box3. Address Complete3withyourfullresidential(ifapplicable )andpostaladdress.Theaddressmustbecurrentandreliable andincaseofanychangeinaddressyoushouldimmediatelyinformSCBGLRegistrarsofyournewaddress.

Box4. GSDAccountDetails Complete4ifyouhaveaGSDAccountasatthedateofyourapplication.YoumaycontactanybrokertoopenaGSD AccountpriortoyoursubmissionofyourcompletedApplicationForm.

RenounceableRightsIssueOfferCircular Box5. DividendMandate Complete5ifyouwishSCBGLtopaydividendsdueyoudirectlyintoyourbankaccount.Fillinthenameofthebank, branch,theaccountnameandtheaccountnumber.

Box6. Declaration Pleasereadthedeclarationcarefullybeforesigning(orthumbprinting)onthelineanddatingtheforminthespace provided.

TheApplicationFormmaybesignedbysomeoneelseonyourbehalfifhe/sheisdulyauthorisedtodoso.Anagent mustenclosetheoriginalpowerofattorneyappointinghim/her(orcopycertifiedbyanotarypublic)unlesshe/she isasellingagentorfinancialintermediaryandstatesthecapacityinwhichhe/shesigns.

5 PaymentforSharesandDeliveryofApplicationForm

ForapplicantsresidentinGhana,paymentmaybemadebycash,cheque,postalormoneyorder,whichshouldbe presentedattheofficesofICSecurities(Ghana)LimitedoranySCBGLBranchwheretheApplicationFormislodged. Allcheques,postalormoneyordersshouldbecrossed SCBGLRIGHTSISSUEPROCEEDS andendorsed Commission toDrawer'sAccount.Thisendorsementmustbesignedbythedrawer.Bankcommissionsandtransferchargeson applicationmoniesmustbepaidbytheapplicant.Applications,inrespectofwhichchequesarereturnedunpaid, foranyreasonwhatsoever,orforwhichfundsdonotclearforthefullamountpayableontheapplicationby5pmon 1December2009,maybetreatedasinvalid.

ApplicantswhoarenotresidentsinGhanashouldremitfundsforthebenefitofthe SCBGLRIGHTSISSUE bybank transfertoSCBGLusingthetransferdetailsbelow:

Currency AccountNo. BankNameandAddress SwiftID BICCode InUSD 8766599211400 StandardCharteredBankGhanaLimited SCBLGHAC SCBLGHAC StandardCharteredBuilding InGBP 2866599211400 Accra InEURO 9366599211400

AnyapplicationfromapersonnotresidentinGhana,whichisnotreceivedinaformwhichwillrealiseclearedfunds forthefullamountpayableontheapplicationby5pmon1December2009,maybetreatedasinvalid.Bank commissionsandtransferchargesonapplicationmoniesmustbepaidbytheapplicant.Applications,inrespectof whichchequesarereturnedunpaid,foranyreasonwhatsoever,willberejected.

AllQualifyingApplicantsresidentinGhanamustdeliverorlodgetheirdulycompletedApplicationFormatthe officesofthereceivingagentsnamedonpage95oftheOfferCircularby5pmon1December2009.

QualifyingApplicantswhochoosetomailtheirApplicationFormtotheReceivingAgentsareadvisedtouse registeredmailservices.However,alldocumentsmailedtotheReceivingAgentsbyQualifyingApplicantswillbeat theapplicant'sownrisk,andSCBGLmaytreatapplicationsnotreceivedby5pmon1December2009asinvalid.

QualifyingApplicantsaretonotethatApplicationFormsmustbelodgedatthesameReceivingAgentofficewhere paymentismadeforthesharesappliedfor.TheReceivingAgentwillacknowledgereceiptofApplicationFormand fundsfromeachapplicant.

StandardCharteredBankGhanaLimited SECTIONA (ToBeCompletedBy Qualifying SCBGL ShareholdersOnly) I. LETTEROF ALLOTMENT

1. Surname/CompanyName

OtherNames Title

2. Address

3.Numberofsharesalreadyheld NumberofRightsentitledt o

4.AmountpayableonsubscriptionofRights, GH¢ II.SUBSCRIPTIONINSTRUCTIONS (Pleasechooseonlyoneoftheoptionsstatedbelow): Option1 Pleasetickyouroption IwishtosubscribefullyformyRightsonly Kindlysignthede clarationbelowandreturnthissignedformtogetherwiththeamountinI4abovetothereceivingagents.

Option2 IwishtosubscribefullyformyRightsandapplyforextrashares IfyoutickedYes,pleaseputinthenumberofextrasha resyouwishtoapplyforand amountpayablecoveringyourtotalapplication below: I/Wewishtosubscribefor ………………………………………………………… extrasharesinadditiontomyallottedRights. I/Wemakepaymentof GH¢/$/£/€……………………………………………………..coveringmyrights andtheextrashares . I/Weunderstandandacceptthatreceivingtheseadditionalsharesdependsuponthenumberofunsubscribedsharesavailableaf terthe closureoftheOfferandwillbeatthediscretionoftheDirectorsof SCBGL. Option3 I wishtopartiallysubscribeformyRightsandrenouncetheremainderin favourofothers Kindly signthisformand complete andattach Section B tothisform.Eachrenounc eemust alsocompleteacopyofSectionC ofthisform.

Option4 I wishtopartiallysubscribeformyRightsandleavetheremainderforthe Directorstoallot Kindlysignthedeclarationbelowandreturnthissignedformtogetherwiththeamountin4abovetothereceivingagents. Option 5 Iwishto fully renouncemyRights infavourof others KindlysignthisformandcompleteandattachSectionBtothisform.EachrenounceemustalsocompleteacopyofSectionC ofthisform.

DECLARATION I/Weherebyapplyforsharesof SCBGL underthete rmsandconditionssetoutintheOfferCircular.I/Wecertifythatallstatements madeinthisapplicationtoenablemetake -up/reject/splitmyrightsinthe SCBGL RightsIssuearecorrectandtheresponsesaremyown.

Shareholder’sSignatu re Date ReceivingAgent ’sStamp/Signature

RenounceableRightsIssueOfferCircular II.SHAREHOLDERDETAILSUPDATE (All Qualifying SCBGL Shareholdersshouldkindlyprovideanupdateoftheircontactdetails): SURNAME/COMPANYNAME:

FIRSTNAME:

MIDDLENAME:

TITLE:

ADDRESS(PHYSICALADDRESS):

ADDRESS(POSTALBOX):

TELEPHONENUMBER: EMAIL:

GSDACCOUNTDETAILS (ifapplicable) BrokerCode:

ClientAccountCode: DIVIDENDMANDATE BankName:

BranchName:

AccountNumber:

PleaseTearAlongThisLine

TobecompletedbytheReceivingAgentandthensignedandretainedbyapplicantasevidenceofapplication SCBGL RIGHTSISSUEAPPLICATION FORM COUNTERFOIL ApplicantsSignature or ReceivingAgent’s Applicant’s Nameand Address Thumbprint Stamp/Signature/Date

Name:

Address:

No.ofSharesAppliedFor: Amtpaid(GH¢/$/£/€):

StandardCharteredBankGhanaLimited SECTION B (ToBeCompleted ONLY By Qualifying SCBGL Shareholders renouncingsomeorall oftheir rights) i. I/Wewishtotakeup shares under myRights

ii. I/Wewishtorenounce theremaining shares infavourof thefollowing persons:

Name NumberofShares

ReceivingAgent’s Shareholder’sSignature Date Stamp/Signature

PleaseTearAlongThisLine

TobecompletedbytheReceivingAgentandthensignedandretainedbyapplicantasevidenceofapplication SCBGL RIGHTSISSUEAPPLICATION FORM COUNTERFOIL Applicant’sSignatureor ReceivingAgent’s Applicant’sNameand Address Thumbprint Stamp/Signature/Date

Name:

Address:

No.ofSharesAppliedFor: Amtpaid(GH¢/$/£/€):

No.ofSharesRenounced:

RenounceableRightsIssueOfferCircular StandardCharteredBankGhanaLimited SECTIONC (ACopyof ThisSectionMustBeCompletedByEachRe nounceeNamedUnderSectionBii ) a)No.ofSharesRenouncedinFavourofRenouncee

AmountPayable(N o.ofsharesunder(a )abovetimes GH¢/$/£/€ pershare)

Name&Address ofRenouncer

Surname/Company 1. Name

FirstName

MiddleName

Title Mr Mrs Ms Dr Sex M F

Dateof Nationality / Birth/Incorporation Countryof (dd/mm/yyyy) Residence

2. IdentificationNo./CompanyReg.No.

National Driver’s Passport Other ID Licence

3. Address

Email Phone

4. BrokerCode ClientAccountCode

5. DIVIDENDMANDATE BankName:

BranchName:

AccountName:

AccountNumber:

6. Declaration: I/WeherebyapplyforsharesonthetermsandconditionssetoutintheOfferCircular.I/Wecertifythatallstatementsmade in thisapplicationtoenableme/ustakeupthesesharesarecorrectandthattheresponsesaremy /our own.

ReceivingAgent’s Shareholder’sSignature Date Stamp/Signature

PleaseTearAlongThisLine TobecompletedbytheReceivingAgentandthensignedandretainedbyapplicantasevidenceofapplication SCBGLRIGHTSISSUEAPPLICATIONFORMCOUNTERFOIL Applicant’sSignatureor ReceivingAgent’s Applicant’sNameandAddress Thumbprint Stamp/Signature/Date

Name:

Address:

No.ofSharesAppliedFor: Amtpaid(GH¢/$/£/€):

RenounceableRightsIssueOfferCircular StandardCharteredBankGhanaLimited