FirstCaribbean International Bank

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For other banks with a similar name, see First Bank.
FirstCaribbean International Bank
Type Public company
Founded Saint Michael, Barbados - 2005
Headquarters Warrens, Saint Michael
Key people Michael Mansoor - Chairman
Charles Pink - CEO
Don Coulter - CFO
Industry Bank
Products Financial services
Revenue $170.6 million[1] USD (2006)
Employees 3 400
Website http://www.firstcaribbean.com/

FirstCaribbean International Bank (FCIB) (BSE:FCI) is a publicly held Caribbean financial services company based in Barbados. Formed in 2001 as a joint venture merging the Caribbean operations of Barclays Bank PLC and Canadian Imperial Bank of Commerce (CIBC), in March 2006 both CIBC and Barclays announced that Barclays wished to exercise their option to exit the Caribbean venture completely resulting in CIBC gaining majority-control of the bank.

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[edit] History

Prior to 2001, the operations of what is now FirstCaribbean were run as the separate businesses of Barclays Bank and CIBC West Indies, part of CIBC's group of companies. Barclays had been active in the region since 1837 and CIBC's foray into the region began with branches in Jamaica in 1920.

  • In March 2006, CIBC officials announced their intention of buying majority control of their publicly held Caribbean joint venture the FirstCaribbean International Bank. The deal costing just over US$1billion (Bds$2 billion) would purchase the current 43.7% owned by Barclays Bank PLC and would raise CIBC's current ownership to 87.4%, from 43.7%. Upon closure of the deal, the top four Caribbean commercial banks would be consolidated merely to a top three, with those being Scotiabank, the FirstCaribbean International Bank, and the Royal Bank of Canada with a possible distant fourth-place bank varying in each territory. Following the deal, the regional head-office for FCI is expected to remain located in Barbados, with that regional centre continuing to report to the Toronto CIBC head-office. [1], [2], (Final agreement for sale).

The deal closed closed on December 23rd, as expected near the end of 2006. is awaiting approval by several Caribbean regional regulators, as well as the securities exchanges in the Caribbean where majority ownership thresholds of 50% + 1 may have been crossed for the publicly held bank.

[edit] CIBC shares acquisition

On March 13, 2006, CIBC and Barclays announced that they had signed a non-binding letter of intent enabling CIBC to acquire 43.7% of the shares of FCIB from Barclays. Upon completion of the transaction, CIBC's ownership was to increase to approximately 87.4% of FCIB.

CIBC announced on 22 December 2006 that it had purchased 599,401,230 shares of FirstCaribbean from Barclays for US$988,652,389 (representing US$1.62 per share plus accrued but unpaid dividends). Barclays also retained their option to tender all or a part of the remaining holdings of 66,600,137 shares. Thereafter CIBC proceeded with a mandatory purchase offer to all remaining shareholders at US$1.62 per share and wound up holding 91.5% of First Caribbean International Bank.

FirstCaribbean is not the only Canadian controlled bank in the region, Scotiabank, and the Royal Bank of Canada also have extensive commercial banking businesses in the region and treat the region as a native market.

[edit] Locations

FirstCaribbean has branches in the following Caribbean countries:

[edit] Offshore

As well as providing financial services to residents of the Caribbean countries where it operates, FirstCaribbean is also a provider of offshore financial services to non residents.

[edit] Membership

FirstCaribbean is a member of various Bankers Associations through-out the Caribbean region. Additionally FirstCaribbean also offers a co-branded University of the West Indies VISA-Classic, Gold or Platinum credit card for students, alumni and staff. FCIB is also a member of:

[edit] Stock Exchange listings

FCIB is listed on the stock exchanges of the Barbados, Jamaica as well as the Eastern Caribbean Securities Exchanges.

[edit] Largest competitors

[edit] See also

[edit] References

  1. ^ Annaual Report (2006). FirstCaribbean Group. Retrieved on 2007-06-20.

[edit] External links

[edit] News and Articles