Basseterre: Consortium of Banks to acquire the banking activities of CIBC First Caribbean in Grenada, Dominica, St Kitts and Nevis and St Vincent and the Grenadines.
A consortium of major banks in the Eastern Caribbean Monetary Union announced that it has reached a definitive agreement to acquire branches and operations CIBC First Caribbean banks in Dominica, Grenada, Saint Kitts and Nevis and Saint Vincent and the Grenadines.
The agreement reached on October 12, 2021 is subject to regulatory approval and customary closing conditions.
Commenting on the transaction, consortium leader and managing director of Bank of Saint Vincent and the Grenadines Limited, Derry Williams said: “This acquisition by the consortium represents an important development in the growth of the banking system of the ECCU. Once regulators approve, we are confident that it will lay the foundation for additional value creation in these economies and greater prosperity for our society.”
The four members of the Consortium are:
1. Grenada Co-operative Bank Limited;
2. The National Bank of Dominica Limited;
3. St. Kitts-Nevis-Anguilla National Bank Limited; and,
4. The Bank of Saint Vincent and the Grenadines Limited (Agent of the Consortium)
“The four local banks are a perfect fit for the bank’s activities in Saint Vincent, Grenada, Dominica and Saint Kitts, as their knowledge of local markets matches our product offerings and our client base and a solid positioning in the market. They bring in-depth knowledge of the local market and the needs of our customers there,” Colette Delaney, CEO of CIBC First Caribbean.
This procurement expands the Consortium’s loan base by over XCD 600 million, net, XCD1.5b’s deposit portfolio; and provides the additional scale to serve the respective communities of the Consortium better and provide to the economic and social progress of the region.
The Consortium looks ahead to serving with CIBC First Caribbean to achieve the transaction over the next few months, both working diligently to ensure the transition goes smoothly for all stakeholders.
Until regulatory approvals are obtained and the transaction closed, the operations of all institutions will continue as they currently do.
Members of the Consortium are committed to recruiting CIBCFirstCaribbean personnel, as needed, to maintain and even improve the level and quality of service to which CIBCFirstCaribbean clients are accustomed.
The Consortium is advised by Deloitte & Touche in Barbados (Senior Adviser) led by Mr. Raymond Haynes, Director, Financial Advisory; and Lex Caribbean (Senior Legal Advisor) led by Ms. Mary Mahabir, Senior Partner.