Business

CIBC FirstCaribbean advances sale of its assets in two OECS countries

Loop News

July 15, 2022 8:45 PM ET

5 mins read

FirstCaribbean International Bank Limited (“FirstCaribbean”) announced today that the sale of its business to two indigenous banks in the eastern Caribbean has received approval from the Eastern Caribbean Central Bank.  

The bank further announced that it will now begin the process of transferring its clients to the Bank of St Vincent & Grenadines Limited in St Vincent and the St Kitts, Nevis, Anguilla National Bank in St Kitts.   

This process is expected to take several months.  

The sale of the Caribbean bank’s business in five countries – Aruba, St Vincent, Grenada and St Kitts & Nevis & Dominica – was announced in October of 2021.  

The Aruba sale was completed earlier this year. 

The parties continue to discuss and negotiate key aspects of the transaction in the proposed sale of CIBC FirstCaribbean’s assets to Grenada Co-operative Bank Limited. 

The bank further announced that the sale of its assets in Dominica to the National Bank of Dominica will not proceed, as NBD has announced a change in its strategic direction, which does not include an acquisition at this time.  

Colette Delaney, Chief Executive Officer of CIBC FirstCaribbean, noted: “We are pleased at the approval of the sales in St Vincent and St Kitts. This helps us deliver on our strategy of simplifying our business.   

It’s a complex set of transactions and it will be some months before we complete the transfer of client accounts over to the purchasing banks.  

In the interim, we will continue to provide our clients with first class service through a modern everyday banking experience and our employees with the best possible work experience.”

Meanwhile, a separate statement was issued from the Consortium of Eastern Caribbean Banks regarding the sale.    

It states on October 12, 2021, The Consortium of banks signed a definitive agreement to acquire the branches and banking operations of CIBC FirstCaribbean in Dominica, Grenada, St Kitts and Nevis, and St Vincent and the Grenadines. 

Following regulatory applications to the Eastern Caribbean Central Bank (ECCB), the Consortium now further advises that today, the ECCB notified the parties of its decisions regarding the applications to acquire the branches and banking operations in St Vincent & the Grenadines and St Kitts & Nevis.  

The parties continue to discuss and negotiate key aspects of the transaction in the proposed sale of CIBC FirstCaribbean’s assets to the Grenada Co-operative Bank Limited. 

The Consortium further announces that the sale of the assets of CIBC FirstCaribbean in Dominica to the National Bank of Dominica Ltd (NBD) will not proceed as NBD has announced a change in its strategic direction. 

Commenting on the transaction, Consortium Lead, and Managing Director of The Bank of St Vincent and the Grenadines Limited, Derry Williams asserted: “We have made considerable progress having received approval of the acquisition of CIBC FirstCaribbean’s businesses in St Vincent and the Grenadines and St Kitts and Nevis. Our efforts are ongoing to complete the Grenada transaction and we support the decision made by the National Bank of Dominica Limited and CIBC FirstCaribbean in relation to the branch and operations in Dominica.”   

The four members of the Consortium are: 

1. The National Bank of Dominica Limited 

2. Grenada Co-operative Bank Limited 

3. St. Kitts-Nevis-Anguilla National Bank Limited 

4. The Bank of St Vincent and the Grenadines Limited 

The Consortium members are market leaders in their respective territories, which offer the full spectrum of commercial banking services and electronic channels.  

As at June 30, 2022, the Consortium members held an aggregate deposit base of XCD $7 billion. Collectively, they have been serving the peoples of the ECCU for a combined period of over 200 years.