A Consortium Forms In The Eastern Caribbean

By NAN Staff Writer

News Americas, NEW YORK, NY, Thurs. Oct. 14, 2021: A consortium of four Caribbean banks is set to acquire CIBC FirstCaribbean in Dominica, Grenada, St. Kitts and Nevis, and St. Vincent and the Grenadines.

The four members of the Consortium are: The National Bank of Dominica Limited; the Grenada Co-operative Bank Limited; the St. Kitts-Nevis-Anguilla National Bank Limited; and The Bank of St. Vincent and the Grenadines Limited.

The leading banks in the Eastern Caribbean say the agreement, executed on October 12, is subject to regulatory approval and customary closing conditions.

This acquisition expands the Consortium’s loan base by more than XCD 600 million, net, the deposit portfolio by XCD1.5b; and provides the additional scale to better service the Consortium’s respective communities and contribute to the region’s economic and social advancement. Until regulatory approvals are obtained and the transaction closes, operations at all institutions will continue as they currently do.

As of June 30, 2021, the Consortium members held an aggregate deposit base of $6.4b representing a 53% market share in their combined markets. Collectively, they have been serving the peoples of the ECCU for a combined period of over 200 years. The Consortium’s customer base includes consumers, small and middle-market businesses, large corporations, statutory bodies and Central Governments.

“This acquisition by the Consortium represents a significant development in the evolution of the Banking System of the ECCU. Once approved by the regulators, we are very confident that it will lay the basis for further enhanced value creation in these economies and greater prosperity for our society,” said Consortium Lead, and Managing Director of The Bank of St. Vincent and the Grenadines Limited, Derry Williams.

“The four indigenous banks are an excellent fit for the bank’s St. Vincent, Grenada, Dominica, and St. Kitts business, given their knowledge of the local markets match with our product offerings and client base and a strong market positioning,” said Colette Delaney, CIBC FirstCaribbean’s Chief Executive Officer. “They bring a depth of local knowledge to the market and the needs of our clients there.”

CIBC FirstCaribbean was formed in 2002 with the merger of CIBC West Indies Holdings and Barclays Bank PLC Caribbean operations. In December 2006, CIBC acquired Barclays stake and became the majority shareholder in FirstCaribbean.